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 CDR 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 the proposed legislation said that he had observed that Corporate Social Responsibility CSR had become the standard business practice over time.
He stated that Corporate Social Responsibility CSR is a business approach that contributes to sustainable development by delivering economic, social and environmental benefits foa all stakeholders.The lawmaker also noted that CSR still remains 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 bill into law, there will be 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 seeks 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 is proposed for amendment states 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.
Speaking in support of the Bill, Hon. Kayode Oladele (Ogun, APC) said that companies and other corporate entities must find a way of giving back to the society.He noted that the security and wellbeing of the people is the primary purpose of government.Consequent upon this, the House presided by the Speaker Hon. Yakubu Dogara passed the Bill into second reading.Dogara thereafter committed the Bill to the House Committee on Commerce for further inputs.