The Landscape of Mandatory Corporate Social Responsibility in India over a decade (2013-2023): An Empirical Analysis

Abstract

This paper highlights how CSR in India has evolved after the mandated regulation under the Companies Act 2013. The parametric test such as regression, ANOVA, t-test, and visualisation approach has been applied to understand how CSR has fared from the year 2014 to 2023. In this study, a tremendous increase in CSR expenditure has been administered with a continuous compounding growth rate of 12.84% every year, and the non-PSU sector has contributed majorly than the PSU sector with a notion of long-term vision. The disparity in the allocation of CSR funds statewide and in the thematic area has been noticed wherein developed states receive the highest allocation due to the presence of manufacturing hubs and offices. Also, companies try to invest their funds in activities that are beneficial for their reputation and aligned to their business. This paper suggests safeguarding multi-stakeholders' interests by creating an obligation for companies to invest in two activities every year with a modification in the thematic area every three years.