Role of Government regulatory in monitoring CSR activities

The regulatory units of Government are found to be helpless in terms of regulatory provisions towards monitoring of the development and expenditure made by the corporate. People like district collector and revenue officer who are responsible for monitoring huge funds and expenditures made by the corporate on CSR activities are also burdened with such serious responsibilities as it doesn’t allow them to vigilant on CSR funds which are often spent by the corporate themselves only. This usually provides corporate a scopes to delay the expenditure of fund, they can use different techniques to meet the dedicated fund meant for CSR. Lack of reports on Corporate Social Responsibility without the prescribed indicators of development and expenditure of Corporate Social Responsibility fund, the corporate usually get opportunities to play hide and seek with the Government and people. They are not transparent in their process.

Most of the corporates are superficial in their Corporate Social Responsibility activities. They feel it to be a barrier in their process of profit maximization. Therefore they either deliberately ignore the demand of development or delay the expenditure. This resulted in ill effect of corporate on people.  But with the new regulation in India of 2% mandatory expenditure on CSR from total net profits corporates are seriously taking CSR activates as their moral duty.