Uday Kotak calls for global adoption of India’s CSR model | India News
Kotak Mahindra Bank founder and non-executive director Uday Kotak has pitched India’s 2 percent mandatory corporate social responsibility (CSR) spend as a global benchmark, calling on international companies to follow suit.“Why can’t we have the world’s corporations give half a percent of their profits to sustainable development goals?” he asked in his keynote address at the TOI Social Impact Summit. “Why can’t India export its CSR principles to the entire world?”Kotak, who chaired a G20 panel on financing social development, said India’s model offered an alternative to higher taxes. “We created a structure where business allocates resources directly to society rather than routing them through govt,” he said. “Most parts of the world fiddle with tax rates.”Indian companies currently contribute over Rs 30,000 crore annually through CSR. Kotak hopes this will rise to Rs 1 lakh crore.He urged companies to go beyond compliance. “Ask yourself: Is the 2 percent being spent for the purpose it’s intended, or just to meet a requirement?”Amid growing concerns over excessive speculation in Indian markets, Kotak questioned whether capital markets are serving their core purpose. “We must ask: Are all the actions we’re seeing in the marketplace today consistent with fair allocation of resources?” he said. Quoting Keynes, he warned, “Speculation is like a bubble on a steady stream of enterprise. The problem arises when enterprise becomes a bubble.”His remarks come as SEBI cracks down on misuse of India’s booming options market. Kotak said strong governance across six pillars—management, boards, shareholders, auditors, rating agencies, and regulators—is key to building a resilient, self-reliant India.
