How mandatory corporate social responsibility can help governments with development goals

Sodhi, Man Mohan, Kumar, Chitresh and Ganguly, Anirban (2021) How mandatory corporate social responsibility can help governments with development goals. Business Strategy and Development, 40 (2). pp. 30-43. ISSN 25723170

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Many governments seek the private sector to meet their development goals. One possible means to enlist this support is to impose mandatory or “hard” corporate social responsibility (CSR) requirements on large companies. To shed light on how mandatory CSR could be helpful in this regard, we study the case of India, where the government has required large companies to spend a fraction of their income toward development as CSR since 2014. We analyzed the expenses of leading Indian companies and found statistically significant similarities among these companies in their spending pattern across the different categories, which we interpret as isomorphism. By looking for the government's motivation and the companies' motivations—both perceive the priorities in unmet social needs—we present a conceptual model to explain this isomorphism in CSR expenditure across different categories. The model suggests that governments may find mandatory CSR helpful to direct corporations in achieving development goals.

Item Type: Article
Keywords: Conceptual Model | Development Goals | India | Isomorphism | Mandatory CS
Subjects: Social Sciences and humanities > Business, Management and Accounting > General Management
JGU School/Centre: Jindal Global Business School
Depositing User: Amees Mohammad
Date Deposited: 08 Feb 2022 09:53
Last Modified: 21 Jun 2022 11:16
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