Legislated
            <scp>CSR</scp>
            in practice: The experience of India

Koya, Ninitha Hamza; Roper, Juliet

doi:10.1002/pa.2507

Cited by 8 publications

(9 citation statements)

References 69 publications

(83 reference statements)

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“…Based on our findings and data, we can say that mandatory CSR has not helped India in creating a culture of social responsibility among corporates. The findings are similar to other research papers about the successful implementation of these rules due to ineffective monitoring and enforcement methods (Kansal et al , 2018; Koya and Roper, 2020). This is evident from their slow response to comply with the law.…”

Section: Discussionsupporting

confidence: 91%

“…Guha (2020) examines the performance of mandatory CSR policy and demonstrate that regulation comes at a cost, as those companies that spent more than the mandated norm before the law spent less than after it. Koya and Roper (2020) interviewed CSR and public relations experts in charge of CSR initiatives and did not find mandatory CSR to help in the development of organizational culture with integrated social responsibility. Mukherjee et al (2018) examined the success of the mandatory law both for SBR 19,1 the corporations and the intended beneficiaries and found that its impact has been underwhelming.…”

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confidence: 99%

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Will legalizing corporate social responsibility get businesses to participate in welfare activities – the case of India

Singh

2022

SBR

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Purpose The purpose of this study is to investigate the role and impact of state regulation of corporate social responsibility (CSR) spending on company actions and to examine whether making mandatory CSR encourages businesses to engage in social welfare projects. Additionally, the authors also investigate whether these CSR expenditures can enable India to meet the Sustainable Development Goals (SDGs) 2030. Design/methodology/approach CSR expenditure data from the government repository of 22,531 eligible companies in India were studied from FY2014–2015 to FY2019–2020. CSR spending is further classified according to development areas of Schedule VII of the Companies Act, 2013, and mapped with the SDGs to see which ones the corporations have prioritized. Findings CSR spending increased from INR 10,066 crore in 2014–2015 to INR 24,689 crore in 2019–2020. Companies have prioritized CSR expenditure on education, followed by health care and rural development. The number of companies spending more than the mandated expenditure increased by around 75% from 2014–2015 to 2019–2020. However, the “comply or explain” approach of the law has led to a major number of companies spending zero on CSR. Companies have generally concentrated on moving CSR funds to designated funds rather than using them for capacity development to instill social responsibility culture. Originality/value This study provides evidence of the impact of mandatory CSR expenditure on welfare activities and SDGs. Unlike previous research, the results of this study are based on CSR expenditures rather than voluntary CSR scores.

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Section: Discussionsupporting

confidence: 91%

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confidence: 99%

Will legalizing corporate social responsibility get businesses to participate in welfare activities – the case of India

Singh

2022

SBR

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“…The Act emphasizes that firms must prioritize CSR expenditures in Roper, 2020). The other highlights of the Act are that any surplus arising from CSR activities must be reinvested into CSR initiatives, which will be over and above the 2% (Hamza Koya & Roper, 2020).…”

Section: Background and Literature Reviewmentioning

confidence: 99%

“…To facilitate this initiative, the company can implement its CSR activities directly or through its nonprofit foundation. They can also engage independently registered nonprofit organizations with a record of at least 3 years in similar related activities or by collaborating or pooling their resources with other companies (Hamza Koya & Roper, 2020).…”

Section: Background and Literature Reviewmentioning

confidence: 99%

Business response to mandatory corporate social responsibility with evidence from India

Kulkarni,

Aggarwal

2023

Bus Strat Dev

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There has been a lot of discussion on the shift from voluntary to mandatory corporate social responsibility (CSR) and its impacts in different countries across the globe. India is unique in this context as the reporting and expenditure of a certain amount under CSR has been mandated for companies. This article analyzes the changes and responses of Indian businesses post‐2014, when new CSR rules were enacted. The key objectives of this study are to assess the level of awareness and compliance, thematic and geographical focus areas for CSR projects, and drivers and barriers to the adoption of mandatory CSR. We performed a secondary analysis of the data from 60 companies, followed by extensive primary research through in‐person interviews and offline questionnaire responses with 100 key CSR professionals from different companies in India. A key finding from the study is that the awareness of CSR policy and the pool of CSR funds has increased. The policy mandates have been a good driver in improving transparency and reporting quality. However, there is a predominant focus on four thematic areas of education, healthcare, hunger, and poverty alleviation despite the government's efforts to expand in other areas. The geographical spread of expenditure is limited to a few key industrial states in India, limiting CSR's contribution towards national development. The study adds to the CSR literature associated with institutional and stakeholder theories by looking at the response of legally bound organizations toward society and the environment. Finally, the study provides valuable information for governments and regulatory authorities considering the mandatory implementation of CSR expenditure across the globe.

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“…In addition, our research focuses on consumers in emerging markets like India, which is the world’s sixth-largest economy and is expected to become the world’s third-largest by the year 2031 (IBEF, 2021). In 2013, India became the first country in the world to make CSR mandatory for highly profitable corporations (Koya and Roper, 2022). This insertion of compelled CSR as a part of the Indian organisations legal framework continues to be a subject of debate and discussion (Hickman et al , 2021; Jumde, 2021).…”

Section: Introductionmentioning

confidence: 99%

Assessing impact of consumer perceived CSR on consumer attitude and purchase behaviour in retail segment: a stakeholder theory perspective

Rathore

Saha

Chakraborty

et al. 2022

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Purpose This study aims to examine the relationship between the perception of consumers about corporate social responsibility (CSR) and consumers’ purchasing behaviour in the retail sector. Specifically, this study investigates the impact of perceived CSR on consumer attitude and behaviour and the influence of attitude on the relationship between perceived CSR and purchase behaviour. Design/methodology/approach In this study for collection of the data, an online questionnaire was distributed among the Indian retail consumers. From the collected primary data set, 249 data points were found fit for analysis. Further, the direct, indirect and moderating effects were evaluated using the structural equation modelling technique. Findings It is identified that while perceived CSR has a significant influence on consumer purchase behaviour, consumer attitude is having an insignificant impact on the relationship between perceived CSR and purchase behaviour. The findings of this study also show that consumer demographics do not have any moderating impact on the relationship between perceived CSR and purchase behaviour. Research limitations/implications The findings of this study are useful to retail managers interested in enhancing CSR. The results of this study suggest that retailers should focus on strengthening consumers’ perceptions about retailers’ CSR initiatives and enhancing co-creation activities. As an extension to this research, further study can include more potential mediators like consumer effectiveness and timing of CSR initiatives. Originality/value This study applies stakeholder theory as well as extends the classic theory of planned behaviour model and proposes the establishment of links among consumers’ perceptions about CSR, consumer attitude and behaviour around the retail sector. In addition, this study considers not only overall consumer behaviour but also specific dimensions of consumer behaviour, namely, loyalty, intention and satisfaction.

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Legislated CSR in practice: The experience of India

Cited by 8 publications

References 69 publications

Will legalizing corporate social responsibility get businesses to participate in welfare activities – the case of India

Will legalizing corporate social responsibility get businesses to participate in welfare activities – the case of India

Business response to mandatory corporate social responsibility with evidence from India

Assessing impact of consumer perceived CSR on consumer attitude and purchase behaviour in retail segment: a stakeholder theory perspective

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