Reps pass bill for companies to adopt Corporate Social Responsibility

THE House of Representatives on Thursday gave nod for an amendment to the Financial Reporting Council Act 2011 in a bill seeking to amongst other things compel companies to adopt Corporate Social Responsibilities CSR in their individual corporate policies.

To this effect, a Bill entitled ‘a Bill for an Act to Amend the Financial Reporting Council of Nigeria Act 2011 No 6 to Prescribe Social Corporate Responsibility Requirement by Companies and Other for Related Matters’ scaled second reading on the floor of the House.

The sponsor of the Bill Hon. Dr. Abubarkar Amuda-Kannike while debating the general principles of the proposed legislation the sponsor of the Bill, Hon Abubakar Amuda- Kanike said that he had observed that Corporate Social Responsibility CSR had become the standard business practice over time.

The lawmaker pointed out that Corporate Social Responsibility CSR was a business approach that. Had contributed to sustainable development by delivering economic, social and environmental benefits for all stakeholders.

ALSO READ: Court orders EFCC to produce Innoson

He further noted that CSR still remained at a developmental stage in Nigeria and emphasized the need for the inclusion in the relevant act to guide standards and practices by companies.

According to him, with the passage of the bill into law, there would be the inclusion of CSR as part of the governance of a company and there would be complete transparency in the running of its affairs.

Specifically, the Bill sought to amend sections 8 (1) of the Financial Reporting Council Act 2011 that states that the Council shall monitor compliance with reporting requirements specified in the adopted corporate governance.

Again Section 49 (h) of the Act that was proposed for amendment stated that there would be a mandatory percentage of CSR responsibility requirement by companies that earned an average of N50,000 000 and above in profits in three succeeding years.

In his contribution in support of the Bill, Hon. Kayode Oladele said that companies and other corporate entities must find a way of giving back to the society.

He noted that the security and well-being of the people was the primary purpose of government.

Consequently, the House presided by the Speaker Hon. Yakubu Dogara passed the Bill into second reading and committed the Bill to the House Committee on Commerce for further inputs.