Monday, April 7, 2014

HC issues notice to a plea to exclude tobacco industry from CSR

Chennai:
Tobacco industry should be excluded from the purview of Corporate Social Responsibility (CSR) Scheme to prevent tobacco industry from earning goodwill through direct and indirect advertising of tobacco products, a petition urged Madras High Court.
The petition by state convenor of Tamil Nadu People’s Forum for Tobacco Control (TNPFTC) S Cyril Alexander, which came up before the first bench comprising of acting chief justice Satish K Agnihotri and justice M M Sundresh urged the High court to issue direction to the Union government to formulate a scheme which mandates tobacco manufacturers to pay to the Union government the amount to be spent under CSR to meet medical expenses of affected people.
The petitioner submitted that the Union government could look into the US model where a Master Settlement Agreement was entered which contained provisions that prohibit advertising, promotions and marketing of tobacco products besides creation of public education fund. He stated that the public education fund would receive funds from tobacco manufacturers and it would be put into use for promoting public health and other initiatives.
“Allowing tobacco industry to take part in CSR would result only in promotion of their brand names and would totally run counter to the very purpose and object behind the introduction of CSR scheme.
The judges ordered two weeks notice to the respondents and also allowed private notice.

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