Don’t force CSR spending, Wipro’s Premji tells government
25 Mar 2011
Wipro chairman Azim Premji on Thursday joined the corporate crescendo against the union government's proposed law to make spending on social schemes compulsory.
The government plans to make it mandatory for companies to spend 2 per cent of their average income of three years as part of the proposed Companies Bill.
"I don't think you generate CSR (corporate social responsibility) by putting statutory requirements. I think there is enough social consciousness among the larger companies to drive it on the basis of what they consider their responsibility," the head of one of India's most valuable information technology firms said.
Premji, considered India's largest philanthropists, was addressing a joint press conference in New Delhi with American philanthropists Bill Gates, Melinda Gates and Warren Buffett – none of whom was willing to comment on the subject.
Premji said, "My concern is that you get legislation ... and a lot of abuse takes place from that legislation in terms of what you define as CSR and what you define as branding. I would be against it,"
He suggested that the government should issue such a proposal "as a guideline rather than as a mandate or a legislation".
