Director Expertise and Compliance to Corporate Social Responsibility Regulations

Swarnodeep Homroy, Wentao Li, Nassima Selmane
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Abstract

We study compliance of Indian firms to the 2013 Corporate Social Responsibility (CSR) regulation that mandates qualifying firms to spend 2 percent of the pre-tax profits on CSR. We demonstrate that the formation of CSR committees and the appointment of directors with relevant experience (CSR-Directors) increase compliance to the CSR law by 11 percent. Further, we show that CSR-Directors improves compliance by implementing a cost-effective CSR strategy by reducing the number and geographic spread of CSR projects. CSR directors are more likely to implement a cost-effective CSR strategy for companies in more competitive industries, companies with high debt, and companies with no previous history of CSR. Companies with higher CSR compliance gain in value and have increased creditworthiness.
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董事专业知识和遵守企业社会责任法规
我们研究了印度公司对2013年企业社会责任(CSR)法规的遵守情况,该法规要求符合条件的公司将税前利润的2%用于企业社会责任。我们证明,成立企业社会责任委员会和任命具有相关经验的董事(CSR- directors)可使企业社会责任法合规率提高11%。此外,我们表明企业社会责任董事通过减少企业社会责任项目的数量和地域分布来实施具有成本效益的企业社会责任战略,从而提高了合规性。企业社会责任董事更倾向于在竞争激烈的行业、高负债的公司和没有企业社会责任历史的公司实施成本效益高的企业社会责任战略。企业社会责任合规性较高的公司价值增加,信誉度提高。
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