State has to improve CSR fund utilisation: Indian Ambassador Venu Rajamony at Kerala's first CSR conclave
Inaugurating Kerala’s first Corporate Social Responsibility (CSR) conclave on Friday, Indian Ambassador to the Netherlands Venu Rajamony underscored the need of better utilisation of CSR funds in the
KOCHI: Inaugurating Kerala’s first Corporate Social Responsibility (CSR) conclave on Friday, Indian Ambassador to the Netherlands Venu Rajamony underscored the need of better utilisation of CSR funds in the state, in collaboration with the government. The conclave organised by the Kerala Management Association (KMA) also gave out awards for CSR excellence among corporates and NGOs. The Companies Act 2013 had mandated companies and government organisations with a turnover of Rs1,000 crore, a net worth exceeding Rs500 crore or having more than Rs 5 crore in net profits, to set aside 2 per cent of their average net profits for CSR activities.
An average of `12,000 crore finds its way into the CSR fund annually in India.
The majority of CSR funds get utilised in the fields of education, health and rural development with states like Maharashtra, Karnataka, Rajasthan and Gujarat leading the pack. “Kerala needs to improve its standing and begin leading the way. Structure CSR funds to support government welfare schemes will make a huge difference,” said Venu. He stressed the need to learn how CSR funds are used effectively in different countries, for which agencies like the World Bank and Asian Development Bank would be of help.
Prominent philanthropist Kochouseph Chittilappily spoke on the need to be aware of scams which make use of CSR funds. “The existence of fraudulent organisations that channel CSR funds to promote fake projects should be checked,” he said, adding everyone should take up the personal responsibility that these funds find their way to fund the right cause. KMA annual conclave provided a platform for various stakeholders like corporate entities, business houses and NGOs to present their best practices done during the year.