A COMPARATIVE ANALYSIS OF CSR EXPENDITURE PATTERNS OF SELECTED INDIAN COMPANIES

Abstract

The introduction of CSR into the corporations governance in India has come into place due to the enactment of the Companies Act, 2013, according to which the necessary companies are subjected to the obligation to devote at least two per cent of the average of their net profits to CSR activities. The current paper provides a comparative study of CSR spending behaviour of the chosen Indian companies- Tata Steel Limited, Infosys Limited, State Bank of India, Hindustan Unilever Limited, and oil and natural gas corporation limited over the years 2019-2020 to 2023-24 when it comes to manufacturing, IT, banking, FMCG and public sector sectors. Based on secondary information obtained through annual reports and CSR disclosure, the research examines the level of CSR spending, intensity of spending, adherence to the recommended CSR spending as well as, sectoral distribution and the change trend. The results show that though the statutory CSR framework has been effective in creating a minimum compliance, there is major inter-company and em-sectoral difference in CSR both in terms of intensity and in the allocation priorities. Education and healthcare are CSR areas that become dominant, and allocations to rural development and environmental sustainability are based on sectoral characteristics. The research concludes that mandatory CSR has institutionalised the involvement of corporations in social development but indicates the necessity to undertake the evaluation of CSR based on outcomes and line strategy in order to improve the efficacy and fair distribution of the CSR funds in India.