IICA, BSE to develop India's first CSR Index
Updated: Sep 23, 2013 10:07:23pm
Mumbai, Sept 22 (KNN) Indian Institution of Corporate Affairs (IICA) and Bombay Stock Exchange (BSE) Limited today signed a memorandum of understanding (MoU) to work collaboratively on developing a Corporate Social Responsibility (CSR) index to facilitate more effective corporate participation in this area.
“Transparency is very important and so the companies must disclose their spending and areas of spend on their own websites. The IICA and BSE partnership will go a long way on raising the level of awareness and accountability”, said Minister of State for Corporate Affairs, Sachin Pilot here.
Stressing on the need to develop CSR index, he said, “Top corporate leadership must lead from the front. It is a new beginning, new initiative for companies with the wherewithal to undertake such initiatives. The index will help in giving a larger platform to such companies and also a global perspective.”
Further, it will help capacity building on CSR, conduct education and awareness programmes.
“BSE through this partnership with IICA shall work on CSR index which will be a driver for its practices for the Indian corporate world and an ideal option for investors to put their money for ‘responsible investment’. Increasingly more investors are considering it as an important investment theme both globally as well as in domestic markets,” said Chairman, BSE Ltd, R Ramadorai in the context of the new Companies Act.
The CSR index would seek to promote investor participation, consumer interest and socio economic benefits to the disadvantaged communities by generating awareness and accountability in CSR spending.
In the new Companies Act, 2013 it has been mandated for eligible companies to spend 2 per cent of their profits on CSR activities. This initiative of the Ministry of Corporate Affairs will require companies to look beyond shareholder value and make CSR a core driver of their strategy.
Further to assist Indian companies in driving their business models based on this approach, IICA through this MoU would work with BSE Ltd to make a CSR index.
BSE, with more than 5,200 listed companies, highest in the world, shall enable IICA in this initiative to get a more comprehensive perspective of CSR practices followed by Indian corporates across various industries segments. (KNN/GUNJ)
“Transparency is very important and so the companies must disclose their spending and areas of spend on their own websites. The IICA and BSE partnership will go a long way on raising the level of awareness and accountability”, said Minister of State for Corporate Affairs, Sachin Pilot here.
Stressing on the need to develop CSR index, he said, “Top corporate leadership must lead from the front. It is a new beginning, new initiative for companies with the wherewithal to undertake such initiatives. The index will help in giving a larger platform to such companies and also a global perspective.”
Further, it will help capacity building on CSR, conduct education and awareness programmes.
“BSE through this partnership with IICA shall work on CSR index which will be a driver for its practices for the Indian corporate world and an ideal option for investors to put their money for ‘responsible investment’. Increasingly more investors are considering it as an important investment theme both globally as well as in domestic markets,” said Chairman, BSE Ltd, R Ramadorai in the context of the new Companies Act.
The CSR index would seek to promote investor participation, consumer interest and socio economic benefits to the disadvantaged communities by generating awareness and accountability in CSR spending.
In the new Companies Act, 2013 it has been mandated for eligible companies to spend 2 per cent of their profits on CSR activities. This initiative of the Ministry of Corporate Affairs will require companies to look beyond shareholder value and make CSR a core driver of their strategy.
Further to assist Indian companies in driving their business models based on this approach, IICA through this MoU would work with BSE Ltd to make a CSR index.
BSE, with more than 5,200 listed companies, highest in the world, shall enable IICA in this initiative to get a more comprehensive perspective of CSR practices followed by Indian corporates across various industries segments. (KNN/GUNJ)
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