Good governance and csr under the new companies act 2013: an empirical evaluation of anticipated effectiveness of selected provision

The decade of nineties passes through a major transformation in the understanding of the role of business in development. In contrast to the framework of economic globalization, there are rising international demands for firms to be more transparent and more accountable for their economic, social and environmental waves wherever they are working. With the increasing awareness of the negative effects of sourcing from developing countries such as child labour and damages to the environment, CSR has become more and more relevant and firms are working actively with these issues. Enhancing CSR has become a vital part of public policies for private sector development within the framework of international development cooperation. CSR is to be considered as an unhurried choice of enterprise to achieve the three dimensions growth (people, profit and planet) and maintaining relation with various stakeholder on the basis of transparency and social, ecological and economic parameters or is it because they want to be good citizens and do the right thing. The paper is just an attempt to measure the effectiveness of new CSR provisions on good governance despite being a very important issue, there is a very little information at the firm level to understand the CSR in Indian context. However the companies Act 2013 has incorporated certain provision related to CSR. Therefore, it is found that no doubt, new provisions have a potential to bring change but proper implementation is prior condition for getting good governance.