Journal of Investment and Management

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Corporate Social Responsibility in India Inc.: Are They Spending Right

Received: 04 May 2013    Accepted: 11 July 2015    Published: 22 July 2015
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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.

DOI 10.11648/j.jim.20150401.12
Published in Journal of Investment and Management (Volume 4, Issue 1, February 2015)
Page(s) 9-13
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This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.

Copyright

Copyright © The Author(s), 2024. Published by Science Publishing Group

Keywords

Corporate Social Responsibility (CSR), Social Spending & CSR Activities

References
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  • Institute of Management Technology, Nagpur, India

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    Jagannath Mohanty. (2015). Corporate Social Responsibility in India Inc.: Are They Spending Right. Journal of Investment and Management, 4(1), 9-13. https://doi.org/10.11648/j.jim.20150401.12

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    Jagannath Mohanty. Corporate Social Responsibility in India Inc.: Are They Spending Right. J. Invest. Manag. 2015, 4(1), 9-13. doi: 10.11648/j.jim.20150401.12

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    Jagannath Mohanty. Corporate Social Responsibility in India Inc.: Are They Spending Right. J Invest Manag. 2015;4(1):9-13. doi: 10.11648/j.jim.20150401.12

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  • @article{10.11648/j.jim.20150401.12,
      author = {Jagannath Mohanty},
      title = {Corporate Social Responsibility in India Inc.: Are They Spending Right},
      journal = {Journal of Investment and Management},
      volume = {4},
      number = {1},
      pages = {9-13},
      doi = {10.11648/j.jim.20150401.12},
      url = {https://doi.org/10.11648/j.jim.20150401.12},
      eprint = {https://download.sciencepg.com/pdf/10.11648.j.jim.20150401.12},
      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.},
     year = {2015}
    }
    

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