ISLAMABAD, May 21: Sec-urities and Exchange Commission of Pakistan (SECP) has approved corporate social responsibility (CSR) guidelines for public companies which would help streamline reporting requirements and corporate accountability of the CSR activities by public companies.

However, the guidelines named the ‘Corporate Social Responsibility Voluntary Guidelines, 2012’ will be notified after consultation with external stakeholders and general public.

The commission has placed the draft guidelines at its website for public comments.

The guidelines shall be applicable to all public companies and are expected to be take effect from July 1, 2012.

The corporate sector regulator has already circulated the guidelines among prominent public companies engaged in CSR activities, stock exchanges, Pakistan Centre for Philanthropy, Pakistan Poverty Alleviation Fund, Institute of Cost and Management Accountants and Institute of Chartered Accountants of Pakistan.

An official of the SECP said that the CSR activities play a significant role in community development in remote areas and conservation of environment, and the companies need to take it seriously.

Many businesses spend considerable amount in the CSR activities but reporting and accounting mechanism for stakeholders was still vague, he added.

In 2009, the SECP issued the Companies (Corporate Social Responsibility) General Order, applicable to all public companies.

According to the said order, every company is required to provide descriptive as well as monetary disclosures of the CSR activities undertaken during each financial year in the directors’ report to the shareholders annexed to the annual audited accounts.