Describe the social responsibilities of the co-operative institutions.
Answers
CORPORATE SOCIAL RESPONSIBILITIES (CSR)
Is it a gimmick or a fact among corporate forums?
Is CSR with in the country, the best alternative to FCRA grants?
J.A.Arockiasamy/[email protected]/9629218104
We come to know that Government of India has made Corporate Social Responsibility (CSR) mandatory in August 2013 to offer 2% of the total profit of any company registered and functioning as a corporate unit to charity enterprises of various kinds. The concept of Social Responsibility is made clear in 135 of companies act that any company with turn over profit of Rs.1000 crore or more, 500 crore or more or even 5 crore or more has to offer by all means 2% of its profit proceeds to CSR which was left optional earlier. Such companies invest in such resources of profits through their own NGOs or collaborating with other NGOs or join hands with likeminded companies based on guidance of the CSR principles. (1) Till August 2013 it was not statutory for companies to support CSR activities. But once it was made mandatory, the companies have plunged in to many support services as given in reference 1. We see that each concern has its own way of funding and allocation. They do so according to their taste and interest. Accordingly, Information technology concerns, textile units, chemicals industries, gold industry and even banks such as nationalized and scheduled banks also has taken up CSR activities in full swing from then on. Most of the banks are involved in allocating funds from CSR working wonders bringing a number of humanitarian services recorded. Thus it is well documented in most of the well organized concerns CSR is being rendered to
1. Eradicating hunger and poverty
2. Promotion of education
3. Empowerment of women
4. Reducing infant mortality and maternal health
5. Supporting HIV and general health programs
6. Environment development initiatives
7. Employment enhancement skills
8. Social business projects
9. Supporting prime minister’s relief funds
10. Other common causes of Philanthropy
Is it time to say bye to FCRA?
It is revealed in a report by Dhananjay Mahabatra on 23.02.2014 in the Time of India that there are 20,00,000 registered NGOs all over the country.(2) Of which it is observed that not even 2% of such NGOs are registered with ministry of home affairs for FCRA (3) According to this statistic on NGOs, every 600 citizens of the country will have an NGO to care for them in need. A foresight by Sanjay Bapat of INDIAN NGOs in 03.21.2013 titled “Business and Strategy” under FORBES INDIA blog has given a challenging and startling steps to development of India’s 660 Districts to get Rs.18,000/- Crores each district for development if the expected 500 first line companies would contribute 2% of their profit yielding a harvest of Rs.63 million and latter 1000 companies yielding a sum of Rs.120 billion to CSR venture all over the country. Now entire country’s NGOs are finding difficult to avail even 5000 crores of support for various development endeavors but now if CSR is given a serious thought it looks each district in INDIA would get a magnanimous support of Rs.18,000/- crores per district through CSR attempt supporting all the 660 districts in the country which would be sure of a rampant transformation in the country through investment of an unimaginable amount in billons through CSR. What could be better? CSR? Or NGO Works through FCRA?
Morale base of NGOs:
We have been hearing of NGOs being blacklisted over these years frequently. NGOs are supposed to be examples of values depicting all virtuous levels of life to individuals and society as they have spelt in their by-laws and deeds either trusts or societies or associations. We hear of Mahatma Gandhi having been a great model of Social Work and Social Transformation and we don’t hear of his organization NGO a Trust or a society or a national NGO or an international NGO for doing charity to people. Yet, he has become the Father of Nation without even a small institution of his own. We learn from this that an institution for social change is not a need of the hour but an individual with right attitude to life.
NGOs thirsting for FCRA Funds:
According to Ministry of Home affairs in 2011-12 the FCRA support through NGOs was a sum to the tune of Rs.3784 crores and in 2012-13 it was 10,963. While referring to Tamilnadu it is recorded that in 2013-14 a sum of Rs.547 crores was availed by NGOs according to report of Devesh K.Pandey on 26 November 2014 in The Hindu. There is a notion among stray cases of NGOs that availing a government program is so easy but difficult to run as there are 100 records and documents to be produced for receiving Rs.200/- government program support for various humanitarian activities. One needs to spend Rs.700/- to avail a sum of Rs.500/- for running a NGO program.