Institutionalisation of CSR stakeholders: an analysis of the Indian corporate sector in the mandatory regime

What is it about?

The present study analyses the deployment of Corporate Social Responsibility (CSR) funds towards the various beneficiaries enlisted by the Ministry of Corporate Affairs (MOCA) as given in the revised Schedule VII of the Companies Act, 2013 in the mandatory regime of CSR. Top 500 listed companies in India chosen from Bombay Stock Exchange (BSE) form the sample of the study. Calculations are made for a period of 7 years since the date of inception of the mandatory rule in 2014. The money spent on each of the specified stakeholder is extracted from the annual reports of the sampled companies to calculate the average expenditure on each of the development heads. The findings suggest that maximum CSR funding is deployed towards ‘Education’ and ‘Healthcare’. Heads as ‘Armed Forces’ and ‘Technology Incubators’ have received minimal share of the CSR funds. As per the guidelines given by MOCA there is deployment of funds into the designated heads but the distribution of CSR expenditure into various development heads is unbalanced. The purpose of holistic social development seems to be a mirage. The study implicates that though the institutionalised back up has replaced the randomness in stakeholders approach, but the disproportionate contribution into various development heads in all the years of mandatory CSR era calls for further assessment of CSR guidelines issued by MOCA.

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