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International Journal of Law and Management: Legitimising CSR through the institutional backup – gauging compliance of the Indian corporate sector in the mandatory regime
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Abstract
Purpose – This study aims to calculate the corporate social responsibility (CSR) expenditure made by
companies as per the provisions of Section 135 of Companies Act 2013 and check the status of compliance/
non-compliance of these provisions in the mandatory regime of CSR.
Design/methodology/approach – Based on a sample of top 500 Indian companies listed on Bombay
Stock Exchange, the study compares the CSR expenditure required to be incurred by companies with the
actual CSR expenditure made by them over a time span of seven years and calculates the extent of surplus or
deficit attained by them starting from the year of inception of CSR provisions, 2014–2015, till the most recent
year, 2020–2021.
Findings – The findings indicate that the average CSR expenditure made by Indian corporate sector is less
than the mandatory requirement. More than half of the companies do not comply with the CSR regulations of
the country. Even the “Most Profitable” companies fail to contribute the minimum required amount towards
social activities akin to their counterparts in the “Less” and “Least” profitable categories.
Practical implications – The disobedience towards the statutory provisions implies that Indian
companies are non-compliant towards CSR guidelines despite the regulative institutional pressure that makes
CSR a mandatory practice to legitimise it.
Originality/value – The study contributes to the CSR literature in the light of the transformed
regulative institutional environment in India. It includes a comprehensive analysis of compliance of
companies with the revised statutes over all the years since the inception of new mandatory guidelines
on CSR till the most recent time period on a representative sample, thus, making the findings robust and
generic with respect to India.
Aparna Bhatia and Amandeep Dhawan - Personal Name
NONE
Text
ENGLISH
EMERALD INSIGHT
2023
ENGLAND
JURNAL ILMU HUKUM
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APA Citation
Aparna Bhatia and Amandeep Dhawan. (2023).International Journal of Law and Management:
Legitimising CSR through the
institutional backup – gauging
compliance of the Indian
corporate sector in the
mandatory regime.(Electronic Thesis or Dissertation). Retrieved from https://localhost/etd