Saturday, November 26, 2011
Company ShareholdersRobbed (CSR)
C S R - Three dangerous alphabets in India. The recent move by the government to coerce companies to contribute compulsory amounts to vague charities in tne name of something called 'corporate social responsibility' a term created by parasitical elements in society. “Altruism is the doctrine which demands that man live for others and place others above self. “No man can live for another. He cannot share his spirit just as he cannot share his body. But the second-hander has used altruism as a weapon of expoloitation and reversed the base of mankind’s moral principles. Men have been taught every precept that destroys the creator. Men have been taught dependence as a virtue. The above passage is from Fountainhead, by Ayn Rand. A listed company belongs to thousands of shareholders. The government cannot pick the pockets of all of them by passing a law on CSR. Let each shareholder get the full payout and he will decide whether he wants to give to some parasite or not to give. It is his money and the government has no right over it. Taxes are already a burden on the efficient, that go to help the parasites in the name of altruism or social responsibiity, for which the person who pays any tax, gets nothing back from the government in return. Nothing more than what a person who pays no taxes, gets from the government. In fact, the person who pays no taxes, often gets more out of the system than the honest tax payer. CSR also has its other problems. Charity in Indian companies is used by owners and CEO's as a tool for personal reasons and nothing else. Often, you find the spouse of the promoter actively engaged in some charity, at the expense of the corporate shareholder. All that the promoter/CEO wants is coverage on page three or whatever as a lionheart. He may not lift a finger to help a dying employee, but will espouse the cause of saving some wild animals. I have seen companies force business associates to donate to the favourite charity embraced by the promoter/CEO. If the associate does not give, he gets not business! CSR will be grossly abused the the CEO/Promoter. CSR should not become law. It is daylight robbery of the shareholder whose pocket is picked by the government. I urge people to raise their voices on this issue. The government is trying to force the private sector to do things that it should be doing itself. There is income tax which is collected by the government by force of law. That is more than enough CSR. Why is agriculture income tax free? And there is no cap on agriculture income. Similarly, people who make money on the stock markets (genuine unearned income) get their money totally tax free and are not forced to give anything. The Indian shareholder gets another kick in his undersides through the evil of CSR.