Corporate Social Responsibility of Indian Small Businesses: A Post-Mandate Analysis

Abstract: What drives Indian small businesses to embrace Corporate Social Responsibility (CSR)—genuine commitment or mere compliance? To address this question, this study analyses CSR engagement post-mandate under the Companies Act, 2013, categorizing businesses into high, moderate, and low spenders. The analysis integrates Carroll's Pyramid of CSR, Stakeholder Theory, and Institutional Theory to examine strategic motivations and implementation patterns. Using secondary data and KMeans clustering, the study highlights significant sectoral and regional disparities in CSR spending. While businesses allocate resources towards key developmental areas, some societal and environmental priorities receive relatively limited attention. The distribution of CSR resources also exhibits regional disparities, with economically developed areas benefiting from higher allocations, while less developed regions receive relatively lower support. Findings suggest that institutional pressures—coercive (regulatory), mimetic (industry trends), and normative (stakeholder expectations)—influence CSR decision-making. The study offers recommendations to enhance CSR’s developmental impact and strengthen corporate accountability for equitable social investment.

Keywords: Corporate Social Responsibility (CSR), CSR Implementation Strategies, Indian Small Businesses, Institutional Pressures on CSR

DOI: 10.54941/ahfe1007004

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