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Analysis of mandatory CSR expenditure in India: a survey

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  • Abhishek Mukherjee
  • Ron Bird

Abstract

In this study of Indian corporations, we investigate the drivers and barriers of corporate social responsibility (CSR) expenditure, determine the attitude of corporates towards CSR activities and the impact of making CSR spending mandatory. We surveyed 223 corporations and found that the attitudes of companies to CSR spending largely vary with age, size and type of ownership. The making of CSR spending mandatory for large corporations did not elicit the forecasted increase in the level of spending because it was avoided by many corporations for whom it became mandatory and a large number for whom it is not mandatory, reduced their level of expenditure. The Indian Government has already had to amend the legislation to more precisely specify the direction of the expenditure and may have to further amend it to encourage increased spending on CSR activities.

Suggested Citation

  • Abhishek Mukherjee & Ron Bird, 2016. "Analysis of mandatory CSR expenditure in India: a survey," International Journal of Corporate Governance, Inderscience Enterprises Ltd, vol. 7(1), pages 32-59.
    • Handle: RePEc:ids:ijcgov:v:7:y:2016:i:1:p:32-59
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    References listed on IDEAS

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    Cited by:

    1. Vikrant Shirodkar & Namita Shete, 2021. "The Impact of Domestic CSR on the Internationalisation of Emerging-Market Multinational Enterprises: Evidence from India," Management International Review, Springer, vol. 61(6), pages 799-829, December.
    2. Manish Bansal, 2022. "Impact of mandatory CSR spending on strategic brand‐building levers: Evidence from a quasi‐natural experiment in India," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(8), pages 3620-3633, December.
    3. Som Sekhar Bhattacharyya & Sumi Jha, 2020. "Explicating micro foundations of corporate social responsibility: a moderated-mediation study of customer, investor and employee roles," International Journal of Ethics and Systems, Emerald Group Publishing Limited, vol. 36(4), pages 619-640, September.
    4. Nicole Rigillo, 2022. "“Islands of excellence”: On the emergence of corporate socials in India," Economic Anthropology, Wiley Blackwell, vol. 9(1), pages 99-111, January.
    5. Anna Jessop & Nicole Wilson & Michal Bardecki & Cory Searcy, 2019. "Corporate Environmental Disclosure in India: An Analysis of Multinational and Domestic Agrochemical Corporations," Sustainability, MDPI, vol. 11(18), pages 1-33, September.
    6. Aruna Jha & Madhavi Kapoor & Nidhi, 2023. "Can One Size Fit All: A Multi-group Analysis of Indian Corporates," Millennial Asia, , vol. 14(4), pages 535-559, December.
    7. Ved Dilip Beloskar & S. V. D. Nageswara Rao, 2022. "Corporate Social Responsibility: Is Too Much Bad?—Evidence from India," Asia-Pacific Financial Markets, Springer;Japanese Association of Financial Economics and Engineering, vol. 29(2), pages 221-252, June.
    8. Teodoro Rafael Wendlandt Amezaga & Marco Alberto Nunez Ramirez & Jose Luis Camarena Martinez & Brenda Yuriria Bejarano Lugo, 2017. "CSR Orientation from the Mexican Businessmen Perspective of Service Enterprises," Journal of Management and Sustainability, Canadian Center of Science and Education, vol. 7(1), pages 54-63, March.
    9. GUPTA Pradeep Kumar & GARG Arunesh, 2022. "Impact Of Csr Expenditure Compliance On Firm Value Using P/B-Roe Valuation Model And Instrumental Approach," Studies in Business and Economics, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 17(2), pages 108-123, August.
    10. Sudershan Kuntluru, 2019. "Corporate Social Responsibility and Firm Performance: Indian Evidence," Working papers 317, Indian Institute of Management Kozhikode.
    11. Mukherjee, Abhishek & Bird, Ron & Duppati, Geeta, 2018. "Mandatory Corporate Social Responsibility: The Indian experience," Journal of Contemporary Accounting and Economics, Elsevier, vol. 14(3), pages 254-265.
    12. Vijayalakshmi, Akshaya & Dev, Pritha & Kulkarni, Vaibhavi, 2022. "Domestic workers and sexual harassment in India: Examining preferred response strategies," World Development, Elsevier, vol. 155(C).
    13. Sudershan Kuntluru, 2019. "Corporate Social Responsibility and Firm Performance: Indian Evidence," Working papers 332, Indian Institute of Management Kozhikode.
    14. Bhattacharyya, Asit & Rahman, Md Lutfur, 2019. "Mandatory CSR expenditure and firm performance," Journal of Contemporary Accounting and Economics, Elsevier, vol. 15(3).

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