rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Philanthropy has to be spontaneous, can't be forced: Premji

Philanthropy has to be spontaneous, can't be forced: Premji

September 26, 2013 17:11 IST

Philanthropy has to be spontaneous, can't be forced: Premji

     Next

Next

Referring to the issue related to Corporate Social Responsibility (CSR), which has been made mandatory by the new laws that govern companies, IT czar Azim Premji on Wednesday said philanthropy cannot be forced and it has to be spontaneous.

Premji, founder-Chairman of Wipro - India's third largest software services exporter added however that efforts towards social good need to be "meaningful" and the government alone is not responsible for "social good".

"They are trying to force something. It should be spontaneous," Premji said while commenting on the issue of mandatory CSR during his address at the All India Management Association's (AIMA) 40th national convention.

Click NEXT to read more…


Image: Azim Premji.
Photographs: Reuters

     Next

Philanthropy has to be spontaneous, can't be forced: Premji

Prev     Next
Prev

Next

The billionaire philanthropist added that giving back to the society is important for the growth of a better world, but it should come from within.

Premji said the stipulation of spending 2 per cent of profits should not become a tax at a later stage.

Under the new Companies Act, 2013, all profitable firms with a sizable business will have to spend every year at least 2 per cent of three-year average profit on CSR works.

This would apply to companies with turnover of Rs 1,000 crore and more, or net worth of Rs 500 crore and more, or a net profit of Rs 5 crore (Rs 50 million) and more.

The new rules, which would be applicable from fiscal 2014-15, also require firms to set up a CSR committee of their board members, including at least one independent director.

Click NEXT to read more…


Image: Bill Gates (L) his wife Melinda Gates, Azim Premji (2nd L) and billionaire Warren Buffett (R) attend a news conference.
Photographs: Reuters
Tags: CSR , Premji

Prev     Next

Philanthropy has to be spontaneous, can't be forced: Premji

Prev     Next
Prev

Next

However, Premji said: "If things have to change in the society then the involvement of the whole ecosystem is must. One cannot rely on government alone to do social good and one has to become a co-sharer of the goal and the outcome."

Outlining the key factors for making CSR successful, he emphasised on the need to define the purpose and scale of CSR activities and choose a focus area.

Premji, however, cautioned against making CSR a substitute for personal philanthropy.

"There should be a distinction between a company activity which is CSR and personal activity that is philanthropy," he added.

Click NEXT to read more…


Photographs: Reuters
Tags: CSR , Premji

Prev     Next

Philanthropy has to be spontaneous, can't be forced: Premji

Prev     More
Prev

More

Known for his business acumen as well as philanthropy, Premji said the company's and entrepreneur's responsibility to the society are two different issues.

In 2010, Premji had donated 8.7 per cent from his personal stock-holding in Wipro for philanthropy forming the endowment for the Azim Premji Foundation, a not-for-profit organisation set up in 2001.

In February, he announced transfer of 295.5 million Wipro shares worth Rs 12,300 crore held by certain entities controlled by him to an irrevocable trust. 


Image: Wipro campus.
Photographs: Punit Paranjpe/Reuters
Tags: Premji , Wipro

Prev     More
© Copyright 2014 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.