Dr. Bhaskar Chatterjee, popularly known in India as the “father of CSR”, addressed the United Nations’ 2016 Forum on Business and Human Rights on November 15, sharing insights into India’s unique law on Corporate Social Responsibility (CSR).
- India is the only country in the world with legislation on CSR. “The 2 Per cent Law” – as it has come to be known across the world – enjoin companies in India, above a certain threshold level of profits, to contribute 2% of profits each year to CSR initiatives.
- Joining a panel titled “State regulatory approaches: the practice in emerging markets”, Chatterjee spoke about the relevance of the CSR legislation for a developing country such as India, whereby corporate funding can be harnessed to assist in executing programs and projects for the poor.
- He described how India’s legislation came to be drafted and how it was passed by both houses of the Indian parliament as a development measure, intended to complement and supplement government efforts to accelerate the pace of “inclusive development.”
- “Our nation has found great success in regulating the legislation through the ‘company and explain’ principle,” he added.