In the past few weeks, the Indian government has created an opportunity for companies to file CSR reports with the Ministry of Corporate Affairs, and there have been rumblings of the government imposing a mandatory CSR spend on companies of a certain size.  Currently, the voluntary CSR Guidelines provide guidance to companies on their CSR activities.

I do believe in the transformational power of government to achieve social good, but I am not so sure that imposing mandatory CSR spends on companies is a viable or necessary option.  Just as it would be nearly impossible to mandate individuals spend a certain amount on personal philanthropy annually, I think it would be equally untenable to try the same with companies.  

While there is justification in the feeling that companies in India are not doing nearly enough in terms of CSR, I certainly am finding that companies are eager to crack the CSR nut and see how they can best implement it and benefit from best practices.  At this critical juncture, I am not sure that imposing mandatory spends will necessarily increase the amount of CSR companies are doing, but I am quite sure it will increase questionable CSR spends.  Rather, it would be wonderful for the government to increase research and education on the topic, highlight model CSR programs, and provide incentives for companies that are ahead of the curve on CSR.

Azad Oommen