Legislation of CSR-Smart Strategy for Sustainable Growth Model in India

Objectives and Purpose: The purpose of this paper is to analyze the initiatives covered in Corporate Social Responsibility (CSR) after the passing of the New Companies Act, 2013 and its impact on the growth trends of India. Design/Methodology/Approach: Primary data was collected from 48 top companies in India. This was done by face to face in depth interviews of Sr. Executives, Presidents, Vice Presidents, and Chief Executive Officers of company’s CSR Department, Human Resource Department, Public Relations and Corporate communications Department. Statistical Package for Social Sciences (SPSS) was used to carry out the analysis. Binomial tests were used as Statistical Tools to validate the results. Findings: Results indicate more focus on inclusive growth. Corporate houses have started improving the overall quality of life of people in the communities around their premises. Expenditures initiated towards CSR activities are now reported and mentioned in their Annual Reports under separate heads of CSR. The findings are exceptional in nature as this kind of practice was not followed by most of the companies till the passing of the New Companies Act, 2013. The 2% net profits after tax have shifted from shareholders outlook to stakeholders’ outlook. Conclusion/ Improvements: To conclude, ever since the country took initiatives to have it legalized, there has been a paradigm shift in the CSR policies in Indian companies. However, Indian companies need more personnel with specialized qualification of CSR at the top level. Originality/Value: The paper introduces a framework to enable more inclusiveness by providing socially responsible initiatives to the weaker section of the society for improving the overall growth pattern of India. Paper Type: Empirical Research Paper