Analyzing the corporate social responsibility disclosures of selected companies in India

Abstract

Purpose

The purpose of this paper is to analyze the extent, quantity and quality of corporate social responsibility (CSR) disclosures made by the top Indian companies in their annual reports.

Design/methodology/approach

This study analyzes the annual reports of the top 137 companies from CNX-500, over ten years, from 2008 to 2017. The technique of content analysis has been employed manually to examine the number of CSR activities disclosed, quantity and quality of CSR disclosures made by the selected companies in their annual reports. Also mean, percentages, trend analysis and analysis of variance have been employed to analyze the disclosures.

Findings

This study highlights that there is a continuous increase in the quantity of disclosures and the number of CSR activities disclosed by Indian companies over the selected period. It also observed that among the selected themes, most disclosed CSR activities are from “customer theme” and “community development theme.” Findings regarding the quality of CSR disclosures revealed that the “qualitative disclosures with specific information” are preferred most by the companies within India. Also, there is a significant variation in the quantity of CSR disclosures across the selected eight themes.

Originality/value

As most of the prior literature on CSR disclosures focused on developed countries in comparison to developing ones, this study contributes to the existing literature by carrying out an extensive investigation of this concept among the Indian companies. Moreover, there are very few studies addressing such a scientific inquiry in the Indian context, especially after the introduction of amendments in the Companies Act, 2013. Furthermore, this study utilizes a comprehensive research instrument consisting of a total of 178 CSR activities, divided across eight themes for collecting data on disclosures from the annual reports. This instrument can be used in the future studies on CSR disclosures in other developing countries as well.

Citation

Sekhon, A.K. and Kathuria, L.M. (2019), "Analyzing the corporate social responsibility disclosures of selected companies in India", Corporate Communications: An International Journal, Vol. 24 No. 4, pp. 686-701. https://doi.org/10.1108/CCIJ-04-2019-0050