Corporate Social Reporting Practices In India

Abstract

"This paper aims to examine the extent of corporate social reporting practices in the annual reports of companies in India and to ascertain the differences if any, between public sector and private sector companies and to
investigate what were the determinants of corporate social reporting . The study intends to answer the research questions which include: a) what variables could represent a Conceptual Model of Corporate Social Reporting consists of dependent
variables and Independent variables? b) What are the factors of Corporate Social Reporting (COSOR) and how valid and reliable are these factors? c) What is the degree of COSOR by factors in public and private sector companies? d) What are the
determinants of COSOR? What is the level of their influence on COSOR? A sample of 120 listed companies of National Stock Exchange of India was chosen and they were stratified in to public and private sector companies. A Corporate social reporting
Index was constructed for data collection through content analysis from the annual reports. The results of the study revealed that social accounting information were disclosed in company’s annual reports, chairman’s speech, directors’ reports, notes
to accounts, schedule to accounts and auditor’s report. The degree of corporate social reporting varies between public sector and private sector companies. The public sector companies have disclosed more corporate social reporting information than
the private sector companies. The study found that higher the level of capital employed, earnings before depreciation and taxes, total assets and total sales higher was the level of corporate social reporting. However, the degree of influence of
determinants on corporate social reporting was different among public and private sector companies. Most of the companies have disclosed corporate social information on voluntary basis. To improve the understandably, uniformity, and comparability of
corporate social information, this study suggests making it mandatory. A standard format for disclosure of corporate social information shall be prescribed by the Ministry of Corporate Affairs by amending the Indian Companies Act. The concept of
social accounting is relatively new in India. This study suggests to include it in the commerce curriculum and also in the curriculum of CA/CWA/CS. Corporate Social Reporting is such a vast area of research that no single study can cover different
dimensions related to it. Though some studies including the present study have been conducted on Corporate Social Reporting Practices in India, but still there is much potential of research in this area. Future research in this area will hopefully
bring more brightening result measuring and analysing social costs and benefits data by manager as well as by other concerned. Since the subject is in the primary stage, an in-depth research is needed to be done in different sectors such as banking
information technology, manufacturing etc. The results are specifically applicable to sample companies and generalisations can be made with caution. The results of the study are based on the data collected from published annual reports of sample
companies using content analysis method. Corporate social reporting in company websites, brochures etc are not covered. Social cost and benefit analysis is not covered in this study.