Reporting of Corporate Social Responsibility in Central Public Sector Enterprises: A Study of Post Mandatory Regime in India
- 642 Downloads
This paper explores the level of corporate social responsibility (CSR) contributions disclosed by central public sector enterprises (CPSEs) in India. This paper analyses the nature and quality of CSR disclosures (CSRDs) made by CPSEs listed in India following the issue of CSR guidelines by the Department of Public Enterprises (DPE) for CPSEs in March 2010. The purpose of the study is to investigate the impact of CSR guidelines on the reporting practices of the CPSEs. A content analysis of annual reports across seven themes shows that Human Resources (HR) and Community Development are the prime focus areas of CSR disclosures, whereas Carbon and Greenhouse Gas (GHG) emissions are the least reported activity. The disclosures across all CSR themes are primarily narrative rather than quantitative or in monetary terms. The findings of the study may help policy makers in India to assess practices and devise detailed and specific CSRD requirements, rather than the current general mandatory requirements, to enhance the performance and quality of CSRDs by the CPSEs.
KeywordsCSR disclosures CSR activities Central public sector enterprises India
- Akhtaruddin, M., Hossain, M. A., Hossain, M., & Yao, L. (2009). Corporate governance and voluntary disclosure in corporate annual reports of Malaysian listed firms. Journal of Applied Management Accounting Research, 7(1), 1.Google Scholar
- Commercial Audit Report. (2009–2010). Corporate social responsibility in government companies. Available at http://www.cag.gov.in/html/reports/commercial/2009_22CA/chap_3.pdf.
- Deegan, C. (2012). Australian financial accounting (6th Edn.). McGraw-Hill Education.Google Scholar
- Deegan, C., Rankin, M., & Voght, P. (2000). Firms’ disclosure reactions to major social incidents: Australian evidence. Accounting Forum. Wiley Online Library, pp. 101–130.Google Scholar
- Deliotte and Indian Chamber of Commerce. (2011). Public sector enterprises in India- pursuing the triple bottom line. Accessed Feburary 16, 2014, from https://www.google.com.au/?gfe_rd=cr&ei=fZ5iVZ71DcGN8QeIs4CoAQ#newwindow=1&q=Public+sector+enterprises+in+India++Pursuing+the+triple+bottom+line.
- Department of Public Enterprises. (2012). DPE CSR guidelines. Retrieved September 12, 2012, from http://www.dpe.nic.in/important_links/dpe_guidelines.
- Finance Minister on the occasion of presentation of the India Pride Awards instituted by the Dainik Bhaskar Group on 13th September 2010. Available at http://taxguru.in/income-tax/government-committed-to-give-public-sector-enterprises-the-flexibility-and-autonomy-to-operate-effectively-in-a-competit.html.
- Gowda, H. (2013). The evolution of corporate social responsibility (CSR) in India. Indian Streams Research Journal, 3, 5.Google Scholar
- Guthrie, J., & Parker, L. D. (1990). Corporate social disclosure practice: A comparative international analysis. Advances in Public Interest Accounting, 3, 159–175.Google Scholar
- Joshi, M., Sidhu, J., & Kansal, M. (2013). Corporate social disclosures in the knowledge-based sector in an emerging economy. Corporate Ownership and Control, 10(3), 237–249.Google Scholar
- Kumar, R., Murphy, D. F., & Balsari, V. (2001). Altered images: The 2001 state of corporate responsibility in India poll. New Delhi: Tata Energy Research Institute.Google Scholar
- Lin, L. W. (2010). Corporate social responsibility in China: Window dressing or structural change. Berkeley Journal of International Law, 28(1), 64.Google Scholar
- Mahadevappa, B., Rechanna, S., & Shankarappa, S. (2012). Corporate social reporting practices in India. Accessed January 10, 2015, from http://ro.uow.edu.au/cgi/viewcontent.cgi?article=1017&context=acsear2012.
- Mukherjee, K., Sen, M., & Pattanayak, J. K. (2010). Firm characteristics and corporate environmental disclosure practices in India. IUP Journal of Accounting Research & Audit Practices, 9(4), 24.Google Scholar
- Murthy, V., & Abeysekera, I. (2008). Corporate social reporting practices of top Indian software firms. Australasian Accounting Business and Finance Journal, 2(1), 36–59.Google Scholar
- NTPC. (2012). Annual Report. Available at http://www.ntpc.co.in/annual-reports/1219/download-completeannual-report-2012-13-2012.
- Osborne, S. P., & Ball, A. (2010). Social accounting and public management: Accountability for the public good. London: Routledge.Google Scholar
- Porwal, L., & Sharma, N. (1991). Social responsibility disclosure by Indian companies. The Chartered Accountant, 39(8), 630–635.Google Scholar
- PWC. (2013). Handbook on Corporate Social Responsibility in India. Available at www.pwc.in/…/handbook-on-corporate-social-responsibility-in-india.pdf.
- Sangle, S. (2010). Critical success factors for corporate social responsibility: A public sector perspective. Corporate Social Responsibility and Environmental Management, 17(4), 205–214.Google Scholar
- Sharma, B. (2013). Contextualising CSR in Asia: Corporate social responsibility in Asian economies. Accessed April 8, 2016, from http://ink.library.smu.edu.sg/lien_reports/5/.
- Sharma, S., Sharma, J., & Devi, A. (2009). Corporate social responsibility: The key role of human resources management. Business Intelligence Journal, 2(1), 205–213.Google Scholar
- Singh, D., & Ahuja, J. (1983). Corporate social reporting in India. International Journal of Accounting, 18(2), 151–169.Google Scholar
- Steel Authority of India Limited. (2012). Annual Report. Available at https://www.sail.co.in/sites/default/files/areport-2011-12.pdf.
- Subramaniam, N., Kansal, M., & Babu, S. (2015). Governance of mandated corporate social responsibility: Evidence from Indian government-owned firms. Journal of Business Ethics, 1–21. doi: 10.1007/s10551-015-2804-0.
- Tewari, R. (2011). Communicating corporate social responsibility in annual reports: A comparative study of Indian companies & multi-national corporations. Journal of Management & Public Policy, 2(2), 22–51.Google Scholar
- The Comptroller and Auditor General of India. (2013). Corporate social responsibility, Union Government (Commercial) No. 2, Chapter 6, pp 91-94. Available at: http://saiindia.gov.in/english/home/Our_Products/Audit_Report/Government_Wise/union_audit/recent_reports/union_compliance/2013/Commercial/Report_2/Chap_6.pdf.
- Vasal, V. (1995). A spatio-temporal analysis on social reporting by companies—Evidence from Indian public sector. Journal of Accounting and Finance, 9(2), 192–216.Google Scholar