Under the heavy pressure from various industries, which don’t want to contribute toward social responsibility, finance minister Nirmala Sithararaman took a measure that Corporate Social Responsibility (CSR) violations not be treated as a criminal offence but would be civil liability.

If companies of a certain size are not spending a mandatory 2% of their profit on CSR, it should remain a criminal offence and should be punished. As per the Companies Act 2013, clause 135 mandates companies above a certain size to spend 2% of the average profit from the last 3 years on social development projects.

A company with a net worth of Rs 500 crore or more, or a turnover of Rs 1,000 crore or more, or a net profit of Rs 5 crore or more in a fiscal year is required to spend 2 per cent of its average net profit in the preceding three years tow­ards CSR.

In an attempt to boost the economy Finance minister said CSR violations not to be treated as a criminal offence. It is not only shameful but regressive. Not sure about the revival of the economy with the measures but such decriminalization of CSR violations is a step backwards.

2% rule had brought more companies in the social sector but now many fear that those companies might step back. While these companies are making 1000s of crores if they are sincere and honest why do they need to worry about the legal framework?

While companies are looting, making money, using natural resources why should not they be held responsible? Already these companies are not doing enough and lastest reports suggest that one in three BSE 100 firms falls short in mandatory CSR spending.

Such steps show clearly that poor and marginalized are not on BJP’s agenda and BJP/RSS is not concerned about social responsibility or social change in the society.