Corporate social responsibility practices of public sector and private sector companies in India

Abstract

Spending on Corporate Social Responsibility (CSR) has been made mandatory, for companies, from the financial year 2014–15, in India. The Companies Act, 2013 has made it obligatory, for companies, to undertake CSR activities and to spend at least two percent of the average profits on CSR. The study was conducted, to know whether there was difference in CSR practices, between public sector and private sector companies. Spending on CSR activities, by the two groups, was compared. The number of independent and woman director in the CSR Committee and number of committee meetings, were studied. T-test and chi-square test were conducted and the results were found not significant. There was no difference in the CSR practices of public sector and private sector companies, i.e., ownership did not affect the CSR practices.