Title: Analysis of mandatory CSR expenditure in India: a survey

Authors: Abhishek Mukherjee; Ron Bird

Addresses: Finance Department, Waikato Management School, University of Waikato, Hillcrest Road, Hamilton 3240, New Zealand ' Finance Department, Waikato Management School, University of Waikato, Hillcrest Road, Hamilton 3240, New Zealand; Paul Woolley Centre, University of Technology Sydney, 14-28 Ultimo Road, Ultimo, NSW 2007, Australia

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.

Keywords: corporate social responsibility; CSR attitudes; India; drivers; barriers; mandatory expenditure; CSR expenditure; firm age; firm size; ownership type.

DOI: 10.1504/IJCG.2016.077982

International Journal of Corporate Governance, 2016 Vol.7 No.1, pp.32 - 59

Received: 23 Jan 2016
Accepted: 07 Mar 2016

Published online: 27 Jul 2016 *

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