In an endeavor to facilitate effective corporate participation in Corporate Social Responsibility, the Bombay Stock Exchange Ltd in collaboration with Indian Institute of Corporate Affairs has decided to develop a CSR index to assess the performance of companies.
The IICA-BSE CSR Index will assess the impact and performance of companies listed at BSE in CSR activities. The index would also look at the performance of companies in their mandatory CSR spend as per the new Companies Act, 2013 as one of the important and objective criteria. The index would be sector neutral.
IICA-BSE also proposes to form an advisory committee to help in the construction of CSR index and its design and will interact with various stakeholders.
“Transparency is very important and so the companies must disclose their spending and areas of spend on their own websites and the MCA website as well. The IICA and BSE partnership will go a long way on raising the level of awareness and accountability,” said Sachin Pilot, Union Minister for Corporate Affairs.
This CSR index will help to the track the CSR activities performed by different companies in India.
“The CSR index would seek to promote investor participation, consumer interest and socio- economic benefits to the disadvantaged communities by generating awareness and accountability in CSR spending,” said Bhaskar Chatterjee, IICA Director General.