Philanthropy and CSR: The government has allowed companies to spend their corporate social responsibility (CSR) funds to set up makeshift hospitals and COVID care facilities.
According to a circular issued by the Ministry of Corporate Affairs (MCA) on April 22nd 2021, this spending will now be considered eligible for CSR under schedule VII of the Companies Act which includes promotion of healthcare, including preventive healthcare, and disaster management.
The ministry has also encouraged companies to undertake these activities in consultation with state governments.
The government’s decision to include these activities under CSR comes at a point when the country is fighting to address the alarming rise in COVID-19 cases. Earlier, in January 2021, the MCA had issued an order that allowed CSR funds to be spent on awareness campaigns and public outreach programmes to promote the COVID-19 vaccinations.
In an appeal to CEOs, MCA secretary, Rajesh Verma said: “Further, in view of the ongoing work-from-home mode of working, you may have some vacant buildings at your disposal. You may like to consider converting these buildings to temporary COVID-care facilities.”.
Read this article on how businesses can help build sustainable and resilient systems during the COVID-19 crisis.
