If forcing unviable pricing was not enough, the government now wants public sector oil companies to spend 2% of their profits on social programmes. The directive makes a complete mockery of the high standards of corporate governance the government wants India Inc to follow...The 2% levy on profits for corporate social responsibility (CSR) spending would depress the valuation of these companies and create a handicap vis-a-vis private sector competitors, apart from upsetting their capital investments and dividend plans. Besides, given the political culture we possess, the sort of social spending the government is suggesting for oilcos would degenerate into funding schemes in, say, the petroleum minister’s constituency and/or those of top leaders of the ruling party.