How you CSR, not what, matters: India's CSR mandate and the hidden cost for companies

India's statutory corporate social responsibility (CSR) mandate could impede authentic social engagement. By enforcing mandatory spending, we risk undermining voluntary CSR initiatives that demonstrate true commitment. This could ultimately degrade the integrity of financial disclosures for investors, leading to increased borrowing costs and adverse stock market reactions. Research indicates that leveraging corporations for social policy can often yield unintended consequences.