Proceedings of the International Association for Business and Society

Volume 28, 2017

Proceedings of the Twenty-Eighth Annual Meeting

Shireesh, Sushil Kumar
Pages 291-297

Making Corporate Social Responsibility (CSR) Mandatory in India: Are Firms Complying?

Drivers of Corporate Social Responsibility (CSR) are generally weak in developing countries like India and the very action of making CSR spending mandatory in India highlights the nonchalance exhibited by firms when it comes to pursuing CSR voluntarily. This study reviews literature on CSR in India, brings into perspective the new legislation that makes it mandatory for firms of a particular size to spend on CSR activities and analyzes the financial spend figures on CSR by Top 100 companies in India during the year 2014-15 to unearth emerging trends. A large majority of the top 100 firms in India have failed to spend the prescribed amount towards CSR activities during the first year after the new legislation came into force. Private sector and public sector companies report significantly different behavior with respect to their CSR spending and shortfall. The study concludes by providing recommendations for making the policy more effective.