CORPORATE SOCIAL RESPONSIBILITY ISSUES AND SUSTAINABILTY
Main Article Content
Abstract
The corporate social responsibility rules, which came into force from April 2014, make it mandatory for large Indian firms to set aside at least 2% of their average net profit for socially responsible expenditures. CSR is a term describing a company’s obligation to be accountable to all of its stakeholders in all its operations and activities. The Companies Act, 1956 is replaced with the Companies Act, 2013 and CSR has been made mandatory for a particular class of companies. There has to be an all-inclusive growth of the companies. Perhaps keeping this in mind, Indian law makers brought this law. This paper aims to provide an assessment of the response by firms to these rules. It examines the extent to which these rules have led firms to comply and the extent to which their implementation over the financial year 2014-15 has contributed additional funds towards the social development of the country. The analysis is based on firm-level data sets of Indian firms for 2010-15. We find that following the implementation of these rules there has been an increase in the number of firms that are spending on CSR initiatives as well as the total amount spent on CSR activities. However, the distribution of CSR expenditures amongst firms is extremely unequal.
Downloads
Article Details
This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.
Under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License (CC BY-NC-ND 4.0 DEED).
You are free to:
- Share — copy and redistribute the material in any medium or format
- The licensor cannot revoke these freedoms as long as you follow the license terms.
Under the following terms:
- Attribution — You must give appropriate credit , provide a link to the license, and indicate if changes were made . You may do so in any reasonable manner, but not in any way that suggests the licensor endorses you or your use.
- NonCommercial — You may not use the material for commercial purposes .
- NoDerivatives — If you remix, transform, or build upon the material, you may not distribute the modified material.
- No additional restrictions — You may not apply legal terms or technological measures that legally restrict others from doing anything the license permits.
Notices:
You do not have to comply with the license for elements of the material in the public domain or where your use is permitted by an applicable exception or limitation .
No warranties are given. The license may not give you all of the permissions necessary for your intended use. For example, other rights such as publicity, privacy, or moral rights may limit how you use the material.
Rights of Authors
Authors retain the following rights:
1. Copyright and other proprietary rights relating to the article, such as patent rights,
2. the right to use the substance of the article in future works, including lectures and books,
3. the right to reproduce the article for own purposes, provided the copies are not offered for sale,
4. the right to self-archive the article.
How to Cite
