Spending money on corporate social responsibility activities will not benefit the society if companies make profits by "corrupting" the political brass and damaging the environment, according to Planning Commission Member Arun Maira.
He said the level of people's trust in both public and private institutions are declining worldwide.
"If you keep making profits by corrupting the political brass, by damaging the environment, by being unfair to people whose land you take and so on, and then you spend about two per cent of your profit back on some so-called CSR, you are not going to improve the condition of the society," Maira told PTI.
Maira said business responsibility is not just about CSR activities but also about understanding its overall impact on communities as well as the environment.
He was speaking on the sidelines of a seminar organized by NGO 'Cuts International'.
In response to a query on whether there are concerns about cronyism in the country, Maira said: "Of course, we are concerned".
"If business behaves in a fashion which is sort of getting things for itself in the political system, in the government and the governance system, then it is destroying the institutions on which people fundamentally depend for ensuring justice, fairness and equity," he noted.