Mumbai : Mandatory CSR spends for companies are “like a tax” and government needs to help identify beneficiaries, Tata Group Chairman Emeritus Ratan Tata said today, adding that philanthropy is an act which comes from within.
“Philanthropy or giving is something that comes within you and you obviously create another motivation when you mandate that you will give ‘x’ or ‘y’,” Tata said, in comments that come days after Facebook’s founder Mark Zuckerberg announced a plan to donate 99 per cent of his USD 45 billion fortune.
On government making corporate social responsibility (CSR) spends mandatory for companies above certain threshold at 2 per cent of profits, Tata said, “The mandated 2 per cent the government has (enforced) becomes like a tax”.
He, however, stressed that a big amount of money gets generated through such contributions and it can be utilised better if the government can clearly identify projects or sectors which are need of funds.
Tata, who retired as the chairman on Tata Sons in 2012 after being at the helm for over three decades, said that Tata Group companies have been devoting up to five per cent of their profits for CSR for many years now.
Refusing to be drawn into a debate of ‘good philanthropy’ versus ‘bad philanthropy’ which has started following the announcements made by Zuckerberg and others, Tata said giving is a new phenomenon which needs to be given its time and space to grow and have course corrections.
He also termed philanthropy as an act of doing something good for the society “without seeking to glorify yourself”.
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Tata Group eyes $350 bn market cap by 2025
New Delhi : With its listed firms adding over USD 100 billion to market capitalisation in the last 15 years, the Tata Group is looking at an increase of nearly USD 250 billion by 2025, including through acquisitions.
The group will not shy away from global buyout activity and will continue to make significant investments in both existing as well as new businesses, including in the digital space to meet its vision 2025 targets.
It is looking to build on the platform set up by its previous Chairman Ratan Tata, who made “the difference” and transformed the group from a largely India-oriented entity into a global multinational.
“If you look at the true valuation of Tata enterprises (today) as a group, it would in fact be substantially higher than what the additional USD 100 billion of market cap represents,” Member – Group Executive Council and Brand Custodian, Tata Sons, Mukund Rajan told PTI.
Tata Motors has lined up a slew of initiatives, including tripling of sales network, filling the gaps in its product portfolio, improving manufacturing processes and brand image, as part of its strategy to be one of the leading players in the Indian passenger vehicle segment.
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