ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY SPENDING OF THE INDIAN COMPANIES

The Corporate Social Responsibility is the commitment of the corporates for the equitable growth & sustainable development of the society. Under the new Companies Act, 2013, passed by Parliament in August 2013, profitable companies will have to spend at least 2 per cent of their average net profit over the preceding three years on CSR activities. In this context the present paper examines the corporate social responsibility spending of the Indian companies. The study also focused on the comparative analysis of Corporate Social Responsibility spending as a percentage of PAT & the transparency score of the Public sector companies & Private sector companies. The study is based on the secondary data collected from annual reports of the companies & Forbes magazine for the financial year 2011-12. The study revealed that the corporate social responsibility spending is less than 2 % of profit after tax of the Indian companies & also there is no significant difference in the corporate social responsibility spending & transparency score of the Public sector companies & Private sector companies. The findings can assists the policy makers to ensure that the Indian companies increased their Corporate Social Responsibility spending & can be more transparent in disclosure of the Business Responsibility report along with the Annual Report.