DistantNews
Support us
🇳🇵 Nepal /Economy & Trade

Private sector opposes government plan to centralize CSR funds

From Kathmandu Post · () English

Translated from English and summarized by DistantNews. Read the original for the full story.

At a glance

News Named sources New plan
  • The Nepali government plans to centralize corporate social responsibility (CSR) funds from industries and financial institutions into a designated government fund.
  • Private sector representatives and financial institutions oppose this, arguing CSR funds should benefit local communities where businesses operate.
  • The proposal is part of the government's 100-point governance roadmap, with legal amendments expected within three months.

Nepal's government is moving to centralize corporate social responsibility (CSR) funds, a plan that has stirred significant opposition from the private sector and financial institutions. The proposed policy, included in the Balendra Shah administration’s 100-point governance roadmap, would require industries and banks to deposit CSR allocations into a government-designated fund. This fund would then be mobilized by the government for its prioritized sectors.

Industry leaders and financial bodies argue that CSR funds are intended for the welfare of local communities where businesses are based. They believe companies should retain the autonomy to spend these funds directly, in coordination with local governments. Anjan Shrestha, president of the Federation of Nepalese Chambers of Commerce and Industry, expressed concern, stating, "The state already has many funds that have not been effectively spent in the past. Another fund should not be created for CSR money." He stressed that the private sector is ready to work within defined standards for local community welfare.

The money should be allowed to be used for the welfare of the local community where the particular industry or business operates.

· Anjan ShresthaPresident of the Federation of Nepalese Chambers of Commerce and Industry, explaining the private sector's stance on CSR fund utilization.

The government aims to complete the necessary legal amendments and new legislation within three months, with the Ministry of Industry, Commerce and Supplies already initiating internal preparations. This move comes as CSR has gained international recognition, with frameworks like the UN Guiding Principles on Business and Human Rights emphasizing corporate responsibility. In Nepal, existing laws mandate that medium and large industries, and some smaller ones, allocate at least one percent of their annual net profit to CSR, with details of spending requiring submission to authorities and the amount being eligible for tax deductions.

We are ready to work in coordination with local governments. The state already has many funds that have not been effectively spent in the past. Another fund should not be created for CSR money.

· Anjan ShresthaPresident of the Federation of Nepalese Chambers of Commerce and Industry, expressing concern over the potential creation of a new government fund for CSR money.
About this summary

Originally published by Kathmandu Post in English. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

More Stories

From Our Blog