Corporate social responsibility: A study of multinational companies in India

Abstract

The Ministry of Corporate Affairs (MCA) had issued Corporate Social Responsibility policy rules 2014, on 27th February, 2014 to comply with the requirements of section 135 of the Companies Act 2013, which are mandatory in nature to all the Companies based on some criteria w.e.f 1st April, 2014. The CSR Rules also prescribe that in case of a foreign company that has its branch or a project office in India, CSR provision will be applicable to such offices. In this context, the study is undertaken to review the CSR initiatives taken by MNC's in India who are also included in the umbrella of CSR under Section 135 of Companies Act 2013. This study will help the Multinational Companies (MNC's) to project where they stand when compared to their peers, it will also help CSR stakeholder to understand how MNC's in India have taken lead towards their CSR initiatives and this will help the companies come out with appropriate CSR project implementation. The data has been presented in the form of case studies which analyses the efforts of these MNC's in India. This paper provides nine case studies of MNC's in India that have been widely recognized world over and have contributed towards a social cause and brought a difference to the wellbeing of the society. The findings reveal that MNCs in India have been taking kin interest in CSR initiatives. Employment, Environment, Education, Health, Civic sense and empowerment has been the most key areas for their CSR initiatives. These companies have implemented most of their CSR activities with the help of NGOs, and local bodies.In conclusion the introduction of CSR provision in the Companies Act is a welcome step, however the inclusion of foreign companies with no clear guidelines may definitely mess the cause. The MCA will have to provide clear guidelines. It is time that will decide whether the inclusion of foreign companies was anaccurate step or not.