World Economy Brief KIEP Staff Papers
발간물
KIEP Opinions
A Case for Mandatory Corporate Social Responsibility (CSR) in India
- 저자 LEE Woong
- 발간일2017-04-16
India is the first country to introduce mandatory CSR spending for eligible firms, based on the revision of the Companies Act in 2013. I evaluate the effects of the revision of the Companies Act in India on the likelihood of a firms CSR participation and its profit. The results show that the revision increased the eligible firms CSR incurrence by 2.3 percentage points, compared to ineligible firms. The findings also indicate that the revision is effective to increase the eligible firms profits by 3.5 percent, compared to the ineligible firms. Therefore, I suggest that profit-maximizing CSR and private provision of public goods through mandatory CSR are valid in India.
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