The transition in governmental approach towards corporate social responsibility (CSR) from voluntary to mandatory has received much attention in the recent literature, mainly because the delegation of its role in social development has rarely been provided. In this context, the questions we raise are: Does mandatory CSR leads to higher expenditure? How does it affect business leaders' intrinsic motivation to spend on CSR? The case of India's section‐135 of Companies Act, 2013 shows that mandatory CSR has made companies more responsible by raising the level of CSR expenditure and positively affecting business leaders' intrinsic motivation to incur CSR expenditure. However, this gain has come at a cost as CSR expenditure has become more sensitive to profit, which is undesirable from society's perspective. The study uses instrumental theory and motivation‐crowding theory to explain the CSR behavior of NIFTY 100 companies from financial year 2009–2010 to 2018–2019. Overall, results of the present study suggest that government should prefer the approach of mandatory CSR with some precautions to instrumentalize the rising success of corporate sector for addressing the environmental and social issues in country.
Persistent socioeconomic inequalities in a society reduce the chances of employment for its weaker sections. In India, those most affected by inequality and discrimination are women, people of lower castes, rural households and illiterate people. This necessitates an analysis of the levels of discrimination and favoritism working against female, lower caste, rural and illiterate individuals in different manufacturing industries. This study presents an in-depth picture of employment in each industry with regard to the four variables selected — gender, caste, location and education. Fourth (2013–2014) and fifth (2015–2016) annual Employment and Unemployment Surveys have been used for the analysis.
Employment distribution disparities are preventing the Indian economy from achievinginclusive growth. The skewed distribution of employment is one of the reasons forthe rising inequalities in the economy. In this regard, the present study analyses theemployment probabilities of Indians working in the manufacturing sector. A binarylogit model has been used on a pooled cross-sectional dataset of the fourth (2013-14) and fifth (2015-16) Employment and Unemployment Surveys (EUS). The studyanalyses four major attributes, namely castes (social categories), gender, location, andeducation. We analyze these attributes separately for all the 29 main Indian states,and find that caste and location are highly important deciding factors of employmentprobabilities in the manufacturing sector.
Assessing the impact of CSR has recently gained momentum over the world.
Most related literature examines how CSR investments affect financial
performance without considering the nexus under commonly uncertain
times. The study uses Indian data to extend the nascent literature on
CSR and EPU by examining the impact of CSR on firm financial performance
during commonly uncertain times. The Panel-Corrected Standard Error
econometric technique has been employed to explore the influence of CSR
on ROE across ten years for NIFTY 100 firms. Besides, System GMM
estimation has been used to deal with the endogeneity bias. Evidence
suggests that during ordinarily uncertain periods, CSR investments act
as a social capital reservoir and improve firm financial performance.
Moreover, the results show that the positive influence of CSR during
times of uncertainty is greater for firms belonging to high visibility
and more sensitive sectors. These novel findings would help corporate
policymakers, individual investors, and managers to better understand
and minimize the losses due to uncertainty. Keywords: CSR, firm
financial performance, Economic policy uncertainty, System GMM, ROE JEL
Codes: G34, G30, D80
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.