Qualitative research on the impact of corporate social responsibility mandate in the companies act, 2013 (India)

Abstract

Purpose: Corporate Social Responsibility (CSR) is a buzz word and so is the CSR mandate where certain companies in India have to mandatorily spend 2% of their Net Profit (average 3 years) in specified CSR activities from the year 2014. This paper examines whether the mandate has had any impact in the companies (coming under the purview of the mandate) and the areas where it has had an impact. Design/methodology/approach: The research methodology consisted of two-step process. Step 1: Two Focus Group Discussions were conducted to explore the areas that can be used to measure the impact of CSR mandate. Step 2: A semi-structured in-depth interview was conducted with 10 CSR heads/ CXOs of companies in India. Data was analysed through qualitative analysis methodology of identifying patterns. Findings: The results of the study indicated three major areas where the CSR mandate impacted the maximum. 1. The CSR budget/ expenditure 2. The choice of CSR activity 3. Partnerships for implementing CSR activities with NGO’s/ Government 4. Frequency of impact Assessments. The study showed that the Mandate has not had much impact in the budget for organisations which already had a CSR departments and activities in place but the importance of the department increased. CSR has now become a topic in the boardroom with clear objectives and deliverables which was not the case earlier in most of the companies. Originality/value: This study provides areas for measuring impact of the fairly new CSR mandate in India. It explains how the CSR mandate has made companies think differently on CSR grounds. The findings will help companies and CSR partners (NGO’s and government) to implement the requirements and the intent of the mandate better.