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Effects of Government Involvement in Corporate Social Responsibility: An Analysis of the Indian Companies Act, 2013

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  • Jin Young Shin
  • Moosup Jung
  • Kyung-il Khoe
  • Myung-Su Chae

Abstract

In this article, we aim at determining whether government involvement in CSR activity is desirable or counterproductive. We analyze the effects of government involvement in CSR by studying the Indian Companies Act, 2013, and estimating its effects by examining forty-seven top Indian companies coming under this Act on three crucial parameters: level of financial contribution to CSR, operating system of CSR, and the kind of CSR activities undertaken by the companies. Many companies under study already contributed their profits to CSR activities and have operating systems. Most CSR activities of the companies under study are also in compliance with the regulated activities of the new Act. Therefore, government involvement in CSR by regulation is not likely to have much negative effect on companies but can create positive developmental environments for communities.

Suggested Citation

  • Jin Young Shin & Moosup Jung & Kyung-il Khoe & Myung-Su Chae, 2015. "Effects of Government Involvement in Corporate Social Responsibility: An Analysis of the Indian Companies Act, 2013," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 51(2), pages 377-390, March.
    • Handle: RePEc:mes:emfitr:v:51:y:2015:i:2:p:377-390
    DOI: 10.1080/1540496X.2015.1021600
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    Cited by:

    1. Guichuan Zhou & Lan Zhang & Liming Zhang, 2019. "Corporate Social Responsibility, the Atmospheric Environment, and Technological Innovation Investment," Sustainability, MDPI, vol. 11(2), pages 1-13, January.
    2. Farida Saleem & Saiqa Saddiqa Qureshi & Muhammad Imran Malik, 2021. "Impact of Environmental Orientation on Proactive and Reactive Environmental Strategies: Mediating Role of Business Environmental Commitment," Sustainability, MDPI, vol. 13(15), pages 1-16, July.
    3. Farida Saleem & Yingying Zhang-Zhang & Muhammad Imran Malik & Alawiya Allui, 2020. "Revisiting Stakeholder Theory and Environmentalism: Evidence from an Emerging Economy," Sustainability, MDPI, vol. 12(20), pages 1-20, October.

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