The importance of CSR needs to be increased, as the need of the hour for organizations is to realize that ultimate goal is not profit making but trust building with communal relationship.
According to authorized committee report, around INR 5.5 billion in 2011-12 for CSR activities was allotted to CIL. The company could spend about INR 0.8 billion, which is gross failure of the compliance on the company & its subsidiaries. Dismayed that CIL, the world’s largest Coal miner, could spend only 15 per cent of allocated funds.
‘Corporate Social Responsibility (CSR) is a management practice wherein companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. It is a way through which a company achieves a balance of economic, environmental and social imperatives, along with addressing the expectations of shareholders and stakeholders’
As per the committee, Coal Ministry on the matter replied that they’ve intentions to spend allocated money for CSR activities, but investigated scenario, revealed different story. Committee recommends that responsible officer should be accounted for the failure of appropriate utilization of CSR funds.
CSR accepts a company to move ahead by law, as-
- Treat employees fairly & respect human rights
- Operate with integrity and in an ethical manner in all its business dealings with customer, suppliers, lenders, and others
- Sustain the environment for future generations
- Be a responsible neighbor in the community and a good corporate citizen
Coal Ministry appealed & stated certain constraints behind non-utilization of CSR funds. On this plea, committee has not only sought the reason but also sought an action against responsible officers of CIL.
The Committee also condemned the “slow action” of CIL, regarding preparing the action plan for identification and implementation of CSR projects.
Earlier, CIL was penalized by CCI & the Director General of CCI, said that, the conduct of CIL in this regards has been found to be independent of the market forces and it has been able to affect the consumers and market in its favor.
Coal India accounts for over 80 per cent of the domestic Coal production.