Corporate Affairs Minister, Salman Khurshid, was reported to have said, “I think there must be a way of quantifying it (CSR) and there must ultimately be available a trader or an exchange to deal in CSR credits."

Currently, there are no CSR credits being traded anywhere else in the world and the Mr Khurshid has asked his officials to look at a framework that is akin to the carbon credits trading mechanism. The idea is supported by ITC chairman, YC Deveshwar. ITC Limited has very strong CSR credentials.

Partner, Ernst & Young, Vikas Vasal, was reported to have said, “The idea of quantifying CSR and linking it with incentives is a workable idea. The incentives could be tax-linked as also non-tax linked. You need to define the parameters well."

However, Mr Khurshid was reported to have said that the idea has not been accepted wholesale by Planning Commission member, Arun Maira, who is said to believe that CSR credits could be prone to misuse. Mr Maira had instead argued that companies need to internalise good governance.

At the moment, CSR framework was not a part of the Companies Bill 2009, but it will be part of the voluntary corporate governance code. The draft code, which will be voluntary, will be kept open for suggestions from all stakeholders for at least a year.