CII Southern chapter plans CSR exchange

 Following the Corporate Affairs Ministry further clarifying on the Corporate Social Responsibility (CSR) activities as per the stipulation of the new Companies Act 2013, the Chennai chapter of the Confederation of Indian Industry is all set to form a CSR exchange to bring its stakeholders further into the CSR loop.

Ranganath N K, chairman of the CSR sub-committee of CII Southern Region and Managing Director of Grundfos Pumps India Pvt Ltd, said the CSR exchange will be an interface for corporates and NGOs and those scouting for funding for social causes.

Supply and demand

“The idea of constituting an exchange is to integrate the supply and demand side of the CSR cause. We have the corporates who are working on the supply, while on the demand side, we have NGOs and other groups looking for funds. If we put in some systemic ideas to make use of corporate money in a scientific way we can make a difference,” he said.

“The new CSR norm is really a revolutionary idea and the exchange will  create solid infrastructure for common clients — a complementary partnership,” Ranganath said. Under the new Companies Act, a certain class of profitable companies are required to devote at least two per cent of their three-year annual average net profits towards CSR activity.

Recently, BSE signed a memorandum of understanding (MoU) with the Indian Institute of Corporate Affairs (IICA) to collaborate and develop a CSR index and increased awareness about CSR. 

IICA and tax advisory Grant Thornton has entered into a pact to develop capacity of domestic firms for effective implementation of CSR rules laid down under the new Companies Act.

As per a Ernst & Young finding, India Inc will invest around Rs 22,000 crore towards CSR once the amended Companies Act is made mandatory. 

“Given the mandate, it is estimated that nearly 16,500 companies will invest Rs 22,000 crore towards CSR,” said a source from EY India’s advisory services.