The editorial, “Sensitive indexes” ( Business Line , August 13) gives a clear picture of how Nifty and Sensex fail to gauge the real pulse of Indian economy today.
Even though a majority of the stocks are trading near their lifetime low, the index does not reflect this.
It’s time to review how the index is calculated and introduce new sectors. Referring to the modified market capitalisation weighted method and Wiltshire-500 Total Market Index, as suggested, will help.
Chennai
Make CSR happen
Bill Gates, an exemplary philanthropist, stressed the need for philanthropic activities by the corporate world in his speech at the World Economic Forum in Davos (“Why CSR isn’t enough, Business Line , August 12). He also called for an alliance between government and businessmen in addressing and resolving the pressing problems of societies, especially in developing countries.
His very inspiring lines are “the least needy see the most improvement and the most needy get the least—in particular the billion people who live on less than a dollar a day.”
If there are businessmen like him in countries like India, there is no need for CSR to be added as a mandatory provision.
But the amendment in the Companies Act to accommodate the CSR clause is not tough enough as there is one condition, ‘Comply or Explain’, that gives companies a loophole.
As mentioned in the article, there should be a ‘CSR-Credits’ tag attached to companies that perform well and fairly in their dealings with all stakeholders along with earmarking a stipulated percentage of profit to social activities.
S. Lakshminarayanan
Cuddalore