Network Analysis of CSR Spending Practices of Indian Extractive Sector

Abstract

We examine Corporate Social Responsibility (CSR) discourse to compare the change in themes across two time periods separated by policy intervention. The paper further explores internal governance and external implementation mechanism of affirmative CSR policy. We use Text Network Analysis of CSR related expenditure to evaluate the CSR discourse of a sample of metal and mining companies from Indian extractive sector. Results are presented in the form of network graphs. We conclude that CSR initiatives in the extractive sector are primarily devoted to local social development, with little emphasis on environmental sustainability. Further, companies have adopted two-tier governance structures for managing CSR. The top tier comprises board members who formulate CSR programs, and the second tier has executives responsible for the implementation. Another tier of governance involving local domain experts is emerging. The three-tier implementation mechanisms will give firms a tighter control on spending and enhance the effectiveness of initiatives.