Philanthropy has to be spontaneous, can't be forced: Azim Premji

Referring to the issue related to Corporate Social Responsibility (CSR), which has been made mandatory by the new laws that govern companies, IT czar Azim Premji today said philanthropy cannot be forced and it has to be spontaneous.


Premji, founder-Chairman of WiproBSE -0.49 % - India's third largest software services exporter added however that efforts towards social good need to be "meaningful" and the government alone is not responsible for "social good".

"They are trying to force something. It should be spontaneous," Premji said while commenting on the issue of mandatory CSR during his address at the All India Management Association's (AIMA) 40th national convention here.

The billionaire philanthropist added that giving back to the society is important for the growth of a better world, but it should come from within.

Premji said the stipulation of spending 2 per cent of profits should not become a tax at a later stage.

Under the new Companies Act, 2013, all profitable firms with a sizable business will have to spend every year at least 2 per cent of three-year average profit on CSR works.

This would apply to companies with turnover of Rs 1,000 crore and more, or net worth of Rs 500 crore and more, or a net profit of Rs 5 crore and more.

The new rules, which would be applicable from fiscal 2014 -15, also require firms to set up a CSR committee of their board members, including at least one independent director.

However, Premji said: "If things have to change in the society then the involvement of the whole ecosystem is must. One cannot rely on government alone to do social good and one has to become a co-sharer of the goal and the outcome."

Outlining the key factors for making CSR successful, he emphasised on the need to define the purpose and scale of CSR activities and choose a focus area.

Premji, however, cautioned against making CSR a substitute for personal philanthropy.

"There should be a distinction between a company activity which is CSR and personal activity that is philanthropy," he added.

Known for his business acumen as well as philanthropy, Premji said the company's and entrepreneur's responsibility to the society are two different issues.

In 2010, Premji had donated 8.7 per cent from his personal stock-holding in Wipro for philanthropy forming the endowment for the Azim Premji Foundation, a not-for-profit organisation set up in 2001.

In February, he announced transfer of 295.5 million Wipro shares worth Rs 12,300 crore held by certain entities controlled by him to an irrevocable trust.

The Economic times

Manmohan-Obama meet boosts defence, nuclear initiatives

Within hours of the White House meeting between Prime Minister Manmohan Singh and U.S. President Barack Obama, the two countries released a joint statement that showcased the breadth of their cooperation as well as highlighted joint naval exercises, promised momentum on investment treaties, reaffirmed their commitment to specific energy-sector projects and counterterrorism strategies.

Among the key initiatives flagged in the joint statement, India particularly welcomed the U.S. offer of membership in its ‘Global Entry’ Trusted Traveler Network programme, a scheme only offered to select countries, which will expedite the entry of approved Indian travellers at the U.S. border.

Despite U.S. officials remarking on several recent occasions that they had “specific concerns” about India’s nuclear liability law, Friday’s joint statement welcomed the announcement that Indian Nuclear Power Corporation of India Limited and U.S. nuclear company Westinghouse had concluded a Preliminary Contract to develop a nuclear power plant in Gujarat. It also reiterated that both nations remained committed to a “full and timely implementation” of the bilateral civil nuclear agreement.

On the subject of fighting terrorism, the two leaders not only agreed to undertake even more cooperation intelligence sharing homeland security cooperation, but they concurred in their strong condemnation of the September 26 terrorist attack in Samba in Jammu and Kashmir. They further called upon Pakistan to “work toward” bringing the 2008 Mumbai terror perpetrators to justice.

Defence cooperation, considered by many to be the “centrepiece” of the bilateral relationship, was applauded by Dr. Singh and Mr. Obama, who said that the way to take this forward in terms of defence technology transfer, joint research, co-development and co-production was by endorsing a Joint Declaration on Defence Cooperation.

Significantly the U.S. President was said to have welcomed India’s decision to participate in the Rim of the Pacific (RIMPAC) naval exercise, which will be hosted by U.S. Pacific Command in 2014.

Another key area of bilateral interest, economic policy, got top billing in the discussions on Saturday. While the usual plaudits were issued on the volume and growth of two-way trade there also appeared to be a renewed vigour in the pursuit of a bilateral investment treaty, negotiations surrounding which appeared to have hit an impasse until recently.

Similarly despite growing international and lobbyist pressure on India to transition to the Montreal Protocol and scale down its use of certain gases the two leaders appeared keen to make progress on this front and agreed to “immediately” convene the India-U.S. Task Force on Hydro fluorocarbons to discuss options that based on “economically-viable and technically feasible alternatives.”

A number of third countries of strategic interest to New Delhi and Washington were also discussed on Friday, it was apparent, and in addition to covering ground on Syria, Iran and East Asia more broadly, Dr. Singh and Mr. Obama revisited the questions emerging on the endgame for Western powers quitting Afghanistan next year.

Specifically, the joint statement reflected a consensus on the view that violent extremists could only be countered by coordinated international support to build the capacity of Afghan National Defence and Security Forces an effort towards which both countries said they would remain committed during the critical transformation decade during 2015-2024.

The tone of the statement of the leaders themselves reflected a sustained warmth and personal chemistry that has been the hallmark of bilateral ties during the tenure of Dr. Singh. Variously the two nations alluded to each other as “partners of first resort” and underscored that their relationship had “crossed a threshold.”

The Hindu