Transparency stressed in CSR activities

SECP outlines CSR guidelines for businesses.

ISLAMABAD: Corporate social responsibility (CSR) is fast becoming an integral part of businesses all over the world and transparency and corporate accountability are essential in carrying out CSR activities, says a top official of the Securities and Exchange Commission of Pakistan (SECP).

“In Pakistan, a large number of businesses are doing commendable work in this area,” said Tahir Mahmood, the SECP Commissioner, Company Law Division, while speaking at a roundtable discussion on CSR Voluntary Guidelines 2012 here on Wednesday.

He reaffirmed the SECP’s commitment to facilitating stakeholders in strengthening accountability and transparency in reporting framework.

SECP representatives recalled that in May this year the commission had, in principle, granted approval to introducing CSR guidelines for public companies, which is a significant step towards streamlining reporting requirements and corporate accountability of CSR activities.

They stressed that ownership of strategic policy for planning, execution and reporting of CSR activities would rest with the board of directors so that the CSR policy could permeate through the business structure for effective implementation.

The guidelines provide for forming a CSR consultative committee, led by a CSR expert, for ensuring transparent, specialised supervision and reporting progress. The guidelines call for obtaining independent assurance of CSR projects and the report of assurer should be made part of the CSR report of a company.

During the discussion, the participants raised queries about areas of interest of CSR activities, constitution of the CSR consultative committee, medium of dissemination of reports to stakeholders, method of allocation of resources and way forward for the SECP.

Published in The Express Tribune, December 27^th, 2012.          

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