Pakistan Needs to Introduce CSR

[I.R.A]

Corporate Social Responsibility.

I see so much potential and benefit by making legislation in this regard. It would also help reduce dependency on NGOs (which remain a controversial matter). Plus it doesn't have to be some strict punishment style laws, tax rebates and credits can be given in lieu, plus it helps them (businesses) with projecting their positive image, buying goodwill of masses, sort of marketing for their brand. I think it can help a lot with infrastructure and welfare. Like construction companies before allowed to build any project in any city, are asked to build school, hospital, clinic, park, orphanage, night homes etc. Oil and exploration companies asked to contribute to areas like Sui village (wherever they are busy in exploration), or just take those mattress supplying Diamond foam etc, provide subisdised / foc mattresses to hospitals. Auto industry to build ambulances, fire fighting vehicles etc. Like any corporation can help beautify any area at least.

I wonder why its missing. Or if there is something in black and white, then why it hasn't been implemented.

@Hell hound @The Sandman @Cookie Monster @PakSword

@padamchen @Nilgiri

 

[PakSword]

Corporate Social Responsibility.

I see so much potential and benefit by making legislation in this regard. It would also help reduce dependency on NGOs (which remain a controversial matter). Plus it doesn't have to be some strict punishment style laws, tax rebates and credits can be given in lieu, plus it helps them (businesses) with projecting their positive image, buying goodwill of masses, sort of marketing for their brand. I think it can help a lot with infrastructure and welfare. Like construction companies before allowed to build any project in any city, are asked to build school, hospital, clinic, park, orphanage, night homes etc. Oil and exploration companies asked to contribute to areas like Sui village (wherever they are busy in exploration), or just take those mattress supplying Diamond foam etc, provide subisdised / foc mattresses to hospitals. Auto industry to build ambulances, fire fighting vehicles etc. Like any corporation can help beautify any area at least.

I wonder why its missing. Or if there is something in black and white, then why it hasn't been implemented.

@Hell hound @The Sandman @Cookie Monster @PakSword

@padamchen @Nilgiri

I think in annual reports, listed companies put a note on CSR activities.. but it's not mandatory.. I agree with you on this.. also, there should be a percentage of profits to be set aside for this..

The only thing is that the companies will say that this is on top of the payments they are making towards income tax, and also the auditors will start charging extra fees to audit the CSR projects..

 

[I.R.A]

I think in annual reports, listed companies put a note on CSR activities.. but it's not mandatory.. I agree with you on this.. also, there should be a percentage of profits to be set aside for this..

The only thing is that the companies will say that this is on top of the payments they are making towards income tax, and also the auditors will start charging extra fees to audit the CSR projects..

That spending can be exempt from all taxes, an allowable deduction as well. It can go under President Fund head or something similar. Auditors can ask from a government nominated institution for confirmation ... a third party confirmation, instead performing additional procedures. Right now if there is something its voluntary, but it can be made mandatory for everyone. It can be both in kind and cash.

 

[PakSword]

That spending can be exempt from all taxes, an allowable deduction as well. It can go under President Fund head or something similar. Auditors can ask from a government nominated institution for confirmation ... a third party confirmation, instead performing additional procedures. Right now if there is something its voluntary, but it can be made mandatory for everyone. It can be both in kind and cash.

I agree.. what I said that companies will say that they pay 30% tax.. now after spending on CSR (if percentage is fixed), it will be extra spending from the income.. This requires a lot of deliberation within and outside of the parliament..

But i fully support the idea.. and your suggestion of taking third party confirmation is also right.

 

[The Sandman]

Corporate Social Responsibility.

I see so much potential and benefit by making legislation in this regard. It would also help reduce dependency on NGOs (which remain a controversial matter). Plus it doesn't have to be some strict punishment style laws, tax rebates and credits can be given in lieu, plus it helps them (businesses) with projecting their positive image, buying goodwill of masses, sort of marketing for their brand. I think it can help a lot with infrastructure and welfare. Like construction companies before allowed to build any project in any city, are asked to build school, hospital, clinic, park, orphanage, night homes etc. Oil and exploration companies asked to contribute to areas like Sui village (wherever they are busy in exploration), or just take those mattress supplying Diamond foam etc, provide subisdised / foc mattresses to hospitals. Auto industry to build ambulances, fire fighting vehicles etc. Like any corporation can help beautify any area at least.

I wonder why its missing. Or if there is something in black and white, then why it hasn't been implemented.

@Hell hound @The Sandman @Cookie Monster @PakSword

@padamchen @Nilgiri

This sounds like a brilliant idea esp the last one about auto manufacturing plants. Now i am not an expert on these things but i can guess the reason this doesn't exist in Pak (or if it does than it's not promoted enough or this law is not implemented harshly) is because i think our politicians they are a bit outdated.

 

[Nilgiri]

Corporate Social Responsibility.

I see so much potential and benefit by making legislation in this regard. It would also help reduce dependency on NGOs (which remain a controversial matter). Plus it doesn't have to be some strict punishment style laws, tax rebates and credits can be given in lieu, plus it helps them (businesses) with projecting their positive image, buying goodwill of masses, sort of marketing for their brand. I think it can help a lot with infrastructure and welfare. Like construction companies before allowed to build any project in any city, are asked to build school, hospital, clinic, park, orphanage, night homes etc. Oil and exploration companies asked to contribute to areas like Sui village (wherever they are busy in exploration), or just take those mattress supplying Diamond foam etc, provide subisdised / foc mattresses to hospitals. Auto industry to build ambulances, fire fighting vehicles etc. Like any corporation can help beautify any area at least.

I wonder why its missing. Or if there is something in black and white, then why it hasn't been implemented.

@Hell hound @The Sandman @Cookie Monster @PakSword

@padamchen @Nilgiri

Would like to hear what @krash has to say on it.

I personally think its a great idea...but Pakistan needs to focus on improving its bureaucracy as it is (delivery efficiency and meritocracy within there for example) esp if you are going the legislation (top down) route....

By making it (bureaucracy) more lean and mean... there is better buffer for companies/corporates (esp at the more smaller and medium sizes that have a relevance/adaptability of quite important different nature to that of big beefy mini-govt corporates) to have the means to start acting more independently regarding how they can sustainably help the larger society they spring from etc (and get the long term rewards from that...that benefit them as well etc).

Leaping too early into that realm before you sort out those more crucial delivery+scope dynamics of the govt bureaucracy (and institutions)....means you potentially just adding another tool to their arsenal to burden any existing companies philanthropist intent (i.e just another kind of tax/extortion route in the hands of some bad local govt people etc).

I am not too well versed in the specifics of Pakistan regarding this....but I can say that in India its exceedingly difficult to set up an independent privately run education institution (as I have had experience in trying to get this going with few likeminded gents... but we didnt have the means/time back then given the bureaucratic red tape and BS we ran into...but still is something I look to doing at some point...hopefully when things get better)...so I can only imagine what it could be like in other such social responsibility stuff (given you start to step on toes of what some govt thugs think is purely what they should be seen doing etc).

@django @Hell hound @Major Sam @Game.Invade @Desert Fox @Psychic @farhan_9909 @Jungibaaz @waz @Arsalan @Moonlight @Joe Shearer @hellfire @Levina @nair @padamchen @WAJsal @jbgt90 @ziaulislam @VCheng @Indus Pakistan @OsmanAli98 @The Sandman @Oscar @Tps43 @Mentee @war&peace @dexter

 

[padamchen]

Corporate Social Responsibility.

I see so much potential and benefit by making legislation in this regard. It would also help reduce dependency on NGOs (which remain a controversial matter). Plus it doesn't have to be some strict punishment style laws, tax rebates and credits can be given in lieu, plus it helps them (businesses) with projecting their positive image, buying goodwill of masses, sort of marketing for their brand. I think it can help a lot with infrastructure and welfare. Like construction companies before allowed to build any project in any city, are asked to build school, hospital, clinic, park, orphanage, night homes etc. Oil and exploration companies asked to contribute to areas like Sui village (wherever they are busy in exploration), or just take those mattress supplying Diamond foam etc, provide subisdised / foc mattresses to hospitals. Auto industry to build ambulances, fire fighting vehicles etc. Like any corporation can help beautify any area at least.

I wonder why its missing. Or if there is something in black and white, then why it hasn't been implemented.

@Hell hound @The Sandman @Cookie Monster @PakSword

@padamchen @Nilgiri

I don't know if there is legislation or credits involved here either.

Companies just do it to varying degrees depending on their social and leadership ethos.

Some more than others. Some quieter than others. Some general wider, some narrower and more limited.

They do it to give back. They also do it for PR in the area and catchment populace in which they operate.

They do it for recognition and brand building. They do it for impacting the lives of people in general, and their own larger employee pool in particular.

There are many motives. But the end result is usually always good. And a huge boost to the government and its own machinery and allocated spending.

Cheers, Doc

I am not too well versed in the specifics of Pakistan regarding this....but I can say that in India its exceedingly difficult to set up an independent privately run education institution (as I have had experience in trying to get this going with few likeminded gents... but we didnt have the means/time back then given the bureaucratic red tape and BS we ran into...but still is something I look to doing at some point...hopefully when things get better)...so I can only imagine what it could be like in other such social responsibility stuff (given you start to step on toes of what some govt thugs think is purely what they should be seen doing etc).

Don't know how long ago this was, but India has and is changing dramatically. You should come back and see for yourself.

There is no stepping on toes or jurisdictional huffiness wars. Much the opposite. From what I hear, governmental bodies and agencies are increasingly dependent on industry, to the point where they actually ride piggyback on CSR efforts and programs as junior/official facilitating partners.

Till they have to be good-naturedly (still not a good idea to piss off babudom) shrugged off by pointing out that oh hey, we were having so much fun that we only just remembered, we have a day job! What's yours? lol

Cheers, Doc

 

[PakSword]

This sounds like a brilliant idea esp the last one about auto manufacturing plants. Now i am not an expert on these things but i can guess the reason this doesn't exist in Pak (or if it does than it's not promoted enough or this law is not implemented harshly) is because i think our politicians they are a bit outdated.

Oye @Zibago @django look who is back

 

[I.R.A]

because i think our politicians they are a bit outdated.

Most of them are industrialists themselves. What do you expect ..... nothing good comes out of them.

Some more than others. Some quieter than others. Some general wider, some narrower and more limited.

They do it to give back. They also do it for PR in the area and catchment populace in which they operate.

They do it for recognition and brand building. They do it for impacting the lives of people in general, and their own larger employee pool in particular.

There are many motives. But the end result is usually always good. And a huge boost to the government and its own machinery and allocated spending.

Exactly the reasons it won't be an extra burden on those companies and organisations.

@Nilgiri In my reply to PakSword I had said something like "President Fund" ..... this doesn't need to go through bureaucratic lethargic processes. Direct voluntarily choosing a deprived area and contributing .... just inform the government. And considering current government reduced or somehow abolished the media spending .... these corporations can be offered subsidised promotional packages, plus the tax benefits. Actually the I want that donations head appearing in their financial statements to mean something .... to really bring a change.

 

[Nilgiri]

Don't know how long ago this was, but India has and is changing dramatically. You should come back and see for yourself.

There is no stepping on toes or jurisdictional huffiness wars. Much the opposite. From what I hear, governmental bodies and agencies are increasingly dependent on industry, to the point where they actually ride piggyback on CSR effort. Till they have to be good-naturedly (still not a good idea to piss off babudom) shrugged off by pointing out that oh hey, we were having so much fun that we only just remembered, we have a day job! What's yours? lol

OK i'll admit things could be very different in maharashtra and western India etc...and there are some excellent stories I am acquainted with particularly in Pune...which might strike close to home for you ...so I get where you are coming from...

But I am talking about TN mostly I suppose...and things are stuck in morass there still...yes I have been back more recently and plan to be back this year too..... and enquired with some good people who are in the middle of pushing their dream philantrophy projects..."come what may" tenacity style...and for various reasons (which basically stems to both local political parties and their rowdy goons they hire as enforcers mostly for industries but hey once you hire they thug...can be used elsewhere too) ....things are more or less kinda the same (there are some other issues too but its long conversation)....and I always sniff its about some kinda turf wars in the end (given TN politics is very much run on/spiced up on freebie handouts still).

 

[padamchen]

Most of them are industrialists themselves. What do you expect ..... nothing good comes out of them.



Exactly the reasons it won't be an extra burden on those companies and organisations.

@Nilgiri In my reply to PakSword I had said something like "President Fund" ..... this doesn't need to go through bureaucratic lethargic processes. Direct voluntarily choosing a deprived area and contributing .... just inform the government. And considering current government reduced or somehow abolished the media spending .... these corporations can be offered subsidised promotional packages, plus the tax benefits. Actually the I want that donations head appearing in their financial statements to mean something .... to really bring a change.

Bro, to be honest, tax book "donations" and actual CSR are very different things.

Actual CSR is run like corporations. Lean and efficient and 24/7 supervised. If only not for profit.

Most large corporations do not outsource these programs. But start small SBUs within the umbrella structure to handle it.

Cheers, Doc

 

[Nilgiri]

@Nilgiri In my reply to PakSword I had said something like "President Fund" ..... this doesn't need to go through bureaucratic lethargic processes. Direct voluntarily choosing a deprived area and contributing .... just inform the government. And considering current government reduced or somehow abolished the media spending .... these corporations can be offered subsidised promotional packages, plus the tax benefits. Actually the I want that donations head appearing in their financial statements to mean something .... to really bring a change.

Yep...something direct and scaleable is best place to cocoon/gestate this stuff and grow more over time. Look forward to seeing what other ideas/experiences ppl have.

 

[padamchen]

OK i'll admit things could be very different in maharashtra and western India etc...and there are some excellent stories I am acquainted with particularly in Pune...which might strike close to home for you ...so I get where you are coming from...

But I am talking about TN mostly I suppose...and things are stuck in morass there still...yes I have been back more recently and plan to be back this year too..... and enquired with some good people who are in the middle of pushing their dream philantrophy projects..."come what may" tenacity style...and for various reasons (which basically stems to both local political parties and their rowdy goons they hire as enforcers mostly for industries but hey once you hire they thug...can be used elsewhere too) ....things are more or less kinda the same (there are some other issues too but its long conversation)....and I always sniff its about some kinda turf wars in the end (given TN politics is very much run on/spiced up on freebie handouts still).

Naughty boy.

Cheers, Doc

 

[Nilgiri]

If only not for profit.

Very key thing actually. It cannot be stated enough....if there can be a hard return, things actually take on momentum of their own.

 

[I.R.A]

Bro, to be honest, tax book "donations" and actual CSR are very different things.

Actual CSR is run like corporations. Lean and efficient and 24/7 supervised. If only not for profit.

Most large corporations do not outsource these programs. But start small SBUs within the umbrella structure to handle it.

Cheers, Doc

Yar I am not in favor of full autonomy ...... they contribute, build and hand it over. Don't want another mafia exploiting common helpless people.