CSR as a tool for sustainable development: an empirical study of select manufacturing companies in India

Abstract

Corporate social responsibility (CSR) encompasses economic, legal, ethical, and philanthropic responsibilities that society has of organisations at a given point in time. In India, mandatory CSR was implemented in 2014. The article aims to examine how CSR by manufacturing companies supports sustainable development. Further, the article examines the differences in CSR practices in public and private sector companies and the sectoral differences in CSR spend. The sample for the study comprises of manufacturing companies engaged in production of Aluminium, Cement, Construction and Engineering, Integrated Oil and Natural Gas and Iron and Steel. The research is based on secondary sources. The findings suggest that CSR is aligned to sustainable development. CSR supports education, healthcare, rural development, livelihood enhancement and environmental sustainability. Secondly, there is significant difference in CSR spend by private and public sector. Private sector companies spend more than public sector units (PSUs). The Department of Public Enterprises provides CSR guidelines to PSUs. Hence CSR spend by PSUs is better aligned to sustainable development. Further, there are significant differences in sector-wise CSR spend. Based on the sample, the Oil and Natural gas sector is the highest contributor to CSR. The empirical study has implications for CSR managers and policy makers.