Govt Adopts Irresponsible Attitude Towards CSR Framework
Showing utter disrespect to the decision taken by the Governor N N Vohra, the PDP-BJP Coalition Government has adopted most irresponsible attitude towards the Corporate Social Responsibility Framework aimed at ensuring efficient allocation and utilization of contributions from various agencies.
Official sources told EXCELSIOR that State Administrative Council (SAC) in its meeting held on March 28, 2016 under the chairmanship of Governor N N Vohra accorded sanction to the adoption of a framework for Corporate Social Responsibility in the interest of efficient allocation and utilization of contributions from commercial organizations as also from individuals.
Following this decision of the SAC, the Planning and Development Department vide Government Order No.196-PD of 2016 dated April 2, 2016 issued framework for the information of all the concerned officers. Moreover, sanction was also accorded to the setting up of a CSR Fund through which contributions from any company/philanthropist individual or organization and Non-Government Organizations will be routed for utilization by the State Government.
Vide this order, even a Governing Body headed by Chief Secretary as its Chairman and Financial Commissioner, Planning and Development Department as its Member Secretary was constituted. The Administrative Secretaries of several departments were made member of the Governing Body with the mandate to assess the requirement of funding the projects/activities and for devising strategies to mobilize CSR contributions.
It was explicitly stated in the order by the Financial Commissioner, Planning and Development Department that Director General (Accounts and Treasuries) will maintain the accounts including receipts and payments under CSR Fund.
However, despite issuance of such an unambiguous order, the Government has adopted most irresponsible attitude towards the Corporate Social Responsibility Framework, which is evident from the fact that even CSR Fund has not been set-up till date despite lapse of nearly six months, sources said.
The intensity of the utter disrespect to the decision taken by the Governor can further be gauged from the fact that the Governing Body has failed to meet even once although, as per the order, it was supposed to meet once every quarter or even early to meet the objective behind creation of Corporate Social Responsibility Framework, sources regretted.
Stating that this decision of State Administrative Council has remained confined to the official files till date, sources said, “in this way the objective of channelizing philanthropic donations and CSR contribution towards the strengthening of social and economic structure stands defeated”, adding “similar is the fate of the decision about uploading of information relating to all activities under Corporate Social Responsibility Framework on the website of the State Government”.
When contacted, Director General (Accounts and Treasuries) Altaf Hussain Mirza expressed ignorance about decision vis-à-vis setting up of CSR Fund and said, “I have no knowledge about any such fund existing in Jammu and Kashmir till date”. He, at the time, put the ball in the court of Finance Department and said, “ask them what steps they have initiated in this regard”.
The non-seriousness towards giving practical shape to the Corporate Social Responsibility Framework and setting up of CSR Fund is notwithstanding the fact that the State Administrative Council had given enough liberty to the State Government for amendments in the guidelines to achieve its objectives.
“After assessing the experience of administering the Fund, the Governing Body, may, as and when required, recommend, for the approval of the State Cabinet, amendment of the guidelines to better achieve its stated objectives”, reads the Decision No.46/6/2016 of State Administrative Council on the subject.
It is pertinent to mention here that Companies Act, 2013 provides that the Board of every company shall approve a Corporate Social Responsibility Policy. Moreover, the Board of every such company is mandated to ensure that the company spends, in every financial year, at least 2 per cent of its average net profits, made during the three immediately preceding financial years, in pursuance of its CSR Policy.
The decision of SAC vis-à-vis channelizing the contributions was based on the fact that a number of fully/ partly owned State Government Companies/ Corporations operating in J&K, individuals and philanthropists including members of J&K Diaspora, pan India and abroad are evincing interest in contribution to the efforts of the State Government for rebuilding public infrastructure which has been damaged by varied difficult circumstances which have obtained in the State for the past many years.
The CSR Fund, as per the framework, can be utilized for training to promote sports both in rural and urban areas; for socio-economic development of the Scheduled Castes and Tribes, Other Backward Classes, minorities and women; for rural development projects and slum area development etc.
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