Eminent business leader Ratan Tata said on Thursday there should be some guidelines to monitor spending of CSR funds by corporates as there might be some companies either "wasting money" or "siphoning in some form".
Tata Sons Chairman Emeritus said corporate social responsibility (CSR) must come form one's heart.
"I don't think you can make it (CSR) into a tax which is 2 per cent of your net profit. We don't expect that there should be a penalty (for not adhering to)," he added.
"There are companies that will make great contribution to the country and there would be some companies which would be either wasting the money or siphoning in some form," Tata said at the 107th annual general meeting of Indian Merchants Chambers in New Delhi.
Tata also said that country's greatest weakness is inequality in enforcement of governance and called for same right to govern a billionaire and a street vendor.
"I think our greatest weakness today in the country is fact that there is inequality in enforcement (of governance). It depends on who you are, what you are, what your money and value is," Tata said.
"And the hope, one would have for new India would be total equality that whether you are a billionaire or a street vendor you have the same rights to be governed by law and order in the same manner."
He said if the country improves on equality, then the governance will take more transparent position to just ensure that one is operating within the law of the land.
"Governance is merely to ensure that you are within the law of the land and enforcement should be the driving force of keeping people within that sphere. We are not there as yet...," Tata said.
He also said that he spends a lot of time in mentoring tribal schools in Maharashtra.