The database will be used to find out whether a company has a desirable social diversity.

The UPA government's proposal requiring public and private sector companies to maintain religious profile of their employees has not gone down well with several corporate leaders, though some say they can live with it.

Companies will have to build a database of their employees, including their religion, to enable the government implement minority welfare programmes under the oversight of the Equal Opportunity Commission (EOC).

"It's the next major step that we will take in bringing minority and majority together in (our) concern for equality," he said.

Reacting to the proposal, Future Group Chief Executive Officer Kishore Biyani said the move would add to the problems in the society. "Our society is complicated and this will make it more complicated," he added.

PHD Chamber President Satish Bagrodia said, "I do not think that corporates will be happy doing religious profiling of employees as these are very personal issues."

"It will be good... And employees will also be benefited from this. It is a matter of equality," he said. Echoing him, Assocham Secretary General D S Rawat said with the enactment of the law, over a period of time companies can correct the social and religious diversity.