The letter to the editor, "Localise CSR" (November 17) commenting on Subir Gokarn's column, "Leveraging the CSR mandate" (November 16), gives a macro view of one of the possible ways to efficiently and effectively manage scarce resources in today's fast-changing uncertain times.
Three points should be kept in mind to understand the column. First, the primordial objective of all business activities is to maximise profits for shareholders; the interests of other stakeholders come later. Second, a two per cent post-tax profit in itself is a back-door tax as rightly pointed out in the column. Third, it is a fact widely known that the business community is treated as a milch cow.
It is essential to bring in transparency in the purpose and scope of corporate social responsibility. Responsibilities should be spelt out and future resource flow determined. While industry has to foot the CSR bill, there should be adequate government machinery for implementation, authentication, validation and certification. Non-governmental organisations can be roped in for domain competence.
S K Trivedi Greater Noida
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