Abstract
This chapter describes the unique setting in India’s corporate sector, where CSR is mandated for companies that meet a certain size threshold. The main focus is on central public sector enterprises through the lens of principal–agent relationships. Four propositions are developed and evaluated with the help of a qualitative study involving managers of such enterprises.
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Notes
- 1.
The DPE sets policy guidelines on performance improvement and evaluation, financial accounting, personnel management, and as well as annually collects, evaluates, and maintains information on their performance.
- 2.
The conversion rate for the whole chapter is based on data from April 15, 2019. The values in US Dollars are rounded accordingly.
- 3.
Criteria for classification of Maharatna, Navratna, and Miniratna:
Maharatna
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Three years with an annual net profit of over INR 5000 crores ($723 million) or net worth of INR 10,000 crores ($1.45 billion) or turnover of INR 20,000 crores ($2.89 billion).
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Free to take decisions on investment up to 15% of net worth or $145 million to $723 million.
Navratna
A score of 60 (out of 100), based on six parameters that include net profit, net worth, total manpower cost, total cost of production, cost of services, PBDIT (Profit Before Depreciation, Interest and Taxes), and capital employed.
Miniratna Category I
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Continuous profits for the last three years or a net profit of $4.3 million or more in one of the three years.
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Free to decide on investments up to INR 500 crores ($72 million) or equal to their net worth, whichever is lower.
Miniratna Category II
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Have made profits for the last three years continuously and should have a positive net worth.
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Free to decide on investments up to INR 300 crores ($43 million) or up to 50% of their net worth, whichever is lower.
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Kansal, M., Subramaniam, N., Babu, S., Mony, S. (2020). CSR in Government-Owned Enterprises in India: A Principal–Agent Perspective. In: Schlegelmilch, B.B., Szőcs, I. (eds) Rethinking Business Responsibility in a Global Context. CSR, Sustainability, Ethics & Governance. Springer, Cham. https://doi.org/10.1007/978-3-030-34261-6_13
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