Paper Details

The CSR in India is an interesting context for examining the possibility of the mandatory 'corporate spending' of work for public welfare. This paper uses descriptive analysis of official expenditure data, and a focused review of legislation and academic research to assess the effectiveness of CSR under the Companies Act, 2013. The financial years 2019-20 to 2023-24 have been examined with reference to national expenditure and the allotments made for selected sectors have been compared for the financial year 2021-22 and 2023-24. The analytical framework is divided into resource mobilization, institutional accountability, allocation and social outcomes. The nominal CSR spending grew by 39.83% in the national series, with CAGR of 8.74%. The expenditure on education rose sharply while that on health care fell between the sectoral endpoints. These findings suggest increasing financial resources and shifting priorities but not that the law led to increased expenditure or that it enhanced the welfare of its beneficiaries. There are different types of evidence for spending compliance and social effectiveness, the paper argues. It suggests easy project reporting, independent evaluation in proportion, and community participation and allocation based on needs. The main finding is that the statutory framework shows that there has been good mobilization of financial resources, but that its effectiveness in terms of money spent and causal social impact is less well defined based on the analyzed data.

corporate social responsibility; Companies Act, 2013; India; secondary data; mandatory CSR; social impact.