Corporate Social Responsibility in India Inc.: Are They Spending Right
Journal of Investment and Management
Volume 4, Issue 1, February 2015, Pages: 9-13
Received: May 4, 2013; Accepted: Jul. 11, 2015; Published: Jul. 22, 2015
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Author
Jagannath Mohanty, Institute of Management Technology, Nagpur, India
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Abstract
In a landmark legislation new companies bill was passed in 2013. The scholars and practitioners welcomed the bill with unprecedented enthusiasm and fanfare. Some even claimed it to be the most progressive bill ever passed in the history of independent India. Amongst many provisions, one that has caught maximum attention is a 2% mandatory spending on CSR activities for companies making Rs. 5 Crores (USD 800,000 approx) or more in profits after tax. One should have the courage to cast a doubt on the good intent and immense possibilities that this legislation offers. Yet, going by the history of businesses in India, both public and privately owned enterprises have been quite reluctant to spend on the social initiatives. Even though the bill appears very promising in its intent, it is not very apparent how the businesses will respond to it. The paper brings out the patterns of large corporate spending on social activities in the past to assess the sector preference of businesses, to somewhere assess are they appending right.
Keywords
Corporate Social Responsibility (CSR), Social Spending & CSR Activities
To cite this article
Jagannath Mohanty, Corporate Social Responsibility in India Inc.: Are They Spending Right, Journal of Investment and Management. Vol. 4, No. 1, 2015, pp. 9-13. doi: 10.11648/j.jim.20150401.12
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