The law on CSR in India: an analysis of its compliance by companies through corporate disclosures

Abstract

ABSTRACT This article is a critique on the state of compliance with the Indian CSR regulatory framework by companies in India, based on a qualitative content analysis of their self-reported CSR-related disclosures for the 2018–19 financial year. This article reveals important findings related to the issues of how companies are complying with the Indian CSR law. Most significantly, this article uncovers that many companies are not complying with the spending as well as its other statutory requirements. Many companies demonstrate a ‘tick-box compliance' approach, with possible indications of circumventing the law for fulfilling self-interests. In particular, the government companies mainly undertake CSR activities in response to the national and state governments' directions. This article advocates the inclusion of systematic and detailed procedures to increase accountability and transparency in companies’ CSR activities. This article also calls for the establishment and an increased role of a specialised and independent regulatory watch-dog for auditing, monitoring and assessing the CSR activities of companies.