The main objective of operating industries, banks and financial institutions is to earn maximum profits. But the need to share such profits not only with the operators but also with the society was voiced a few decades ago all over the world. Because, in the operation of commercial institutions, society directly or indirectly supports and also suffers from its impact. The operators have to bear the responsibility for that. On the other hand, industries, banks and financial institutions must have a harmonious relationship with the society in which they operate.

Various problems arise especially in institutions that do not belong to the society. To address this issue, the concept of Corporate Social Responsibility (CSR) is being implemented. In Nepal, industries, banks and financial institutions have been spending a certain portion of their profits on society. Now, arrangements are being made to deposit such amounts in the state treasury. The government should take care of the issue that such an effort goes against the main essence of ‘CSR’.

In various countries, the practice of spending ‘CSR’ on their own by specifying a percentage of profit or making it voluntary has been adopted. Since a practice has been established in Nepal as well, it is appropriate to continue making it effective. In Nepal, medium and large industries or domestic or small industries with an annual turnover of more than Rs 150 million, banks and financial institutions have been spending a certain portion of their profits on local communities, education, health, environmental protection, sports, disaster management and other sectors. The draft of the ‘Company Law Bill-2083’ prepared by the government proposes that ‘CSR’ funds should not be spent by the government itself. Instead, it is said that they should be deposited in the ‘Corporate Social Responsibility Fund’ to be established by the government. According to the draft, companies with an annual turnover of more than Rs 250 million will have to deposit at least one percent of their net profit in the fund. The proposal also requires companies with a turnover of more than that, but the amount is not clearly mentioned.

An additional reason is needed to change the current trend. The additional reason for the proposal to deposit the amount that the private sector is spending itself in the government treasury is not clear. The government may have intended to collect all the money in one place and spend it in the area it wants. But the government does not have to target 'CSR' for the money. Because there is already sufficient money in the state treasury. There is also an established practice of raising revenue to strengthen the state treasury. The state has already determined the revenue target and area through the budget. Mainly, the money that is already in the state treasury, especially in development construction, has not been spent. Not only various funds, but the state also does not seem to have the ability to fully spend the development budget allocated every year. On the one hand, the amount in the treasury and the budget cannot be spent, and on the other hand, the tendency to accumulate additional money is contradictory.

The issue of depositing ‘CSR’ money in the state treasury is contrary to its concept. Whatever the concept of the program is, it should be implemented accordingly. The concept of ‘CSR’ is clear – to develop responsibility towards the community in which the organization operates. To invest in developing the capacity of the community. To distribute even a small part of the organization’s profits. To bear symbolic compensation for the impact that the community has to face during the operation of the organization. To strengthen the bond between the organization and the community. However, if the money being spent through ‘CSR’ goes directly to the government’s treasury and is spent by the government itself, the popularity of the government may increase, but the society does not take ownership of the organization, nor does it provide moral security. In such a situation, obstacles or uncomfortable situations may arise in the operation of the organization. Ultimately, this does not increase the morale of the private sector. It does not encourage it either.

‘CSR’ funds have only been used properly, organizations have spent them only to benefit the target community, not to say that they have honestly tried to achieve creative achievements . There have also been ‘conflicts of interest’ spending . In fact, many good works have also been done . There are many examples of such funds being used to improve the education and health sectors of the community during times of disaster . If there are any weaknesses in the practice of spending ‘CSR’, the government can manage it . Monitoring can be increased through strong laws . The areas where spending can be done can be made more specialized and concrete . There are many ways to improve weaknesses . However, the government is adopting a policy of integrating funds without making any effort in that direction . It seems that it also thinks of ‘CSR’ as a tax . However, ‘CSR’ is not a tax, not for the state . If the state does not have enough funds, there are other options . That should be adopted .