A Study on the Impact of Mandatory Provisions on CSR Strategies of Indian Companies

Abstract

CSR encompasses the economic, legal, ethical, and discretionary (philanthropic) expectations that society has of organizations (Carroll 1999). Such mandatory provision has, however, raised several important questions about the way CSR is perceived and implemented. The proposed research intends to look at a few such issues; such as (1) whether such mandatory provisions have diluted the voluntary spirit inherent in CSR, (2) whether there is any difference in the approach adopted by top companies listed in stock exchanges toward CSR after the mandatory requirements came into force (a comparison between the pre- and post-implementation of mandatory provisions is attempted), and (3) whether CSR activities by such companies conform to the set of activities prescribed under Schedule VII of the Companies Act 2013. Data on CSR activities, CSR spending, and company details are collected from secondary sources for a sample of 30 companies. Data analysis was carried out to examine the aforementioned objectives. This research intends to establish whether Companies Act 2013 will bring about meaningful changes in the way CSR is perceived and implemented in India by the Indian companies.