By Divya Anantharaman, Hariom Manchiraju, Shekhar Misra
Review of Accounting Studies | March 2026
https://doi.org/10.1007/s11142-026-09948-1
Anantharaman, D., Manchiraju, H. & Misra, S. Beyond disclosure: Can firms be forced to spend their way to social responsibility?. Rev Account Stud (2026). https://doi.org/10.1007/s11142-026-09948-1
Review of Accounting Studies, 2026
We study India’s regulation requiring firms to create board-level CSR committees and spend 2% of profits on CSR initiatives targeting environmental sustainability and local socioeconomic development. We examine whether such a mandate can meaningfully enhance corporate social responsibility. We find significant improvements in environmental and social ratings of Indian firms relative to matched global peers, particularly in community engagement and natural resource stewardship. Outcome-based measures, such as waste and resource use, also indicate real effects. Notably, improvements occur only in firms that substantially increase CSR spending and establish independent, expert committees; firms that merely comply superficially show muted effects. Our findings suggest that, despite criticisms of mandated CSR as paradoxical or potentially rent-seeking, such regulations can effectively promote socially responsible business practices when implemented with sufficient commitment and oversight.
Prof. Hariom Manchiraju is an Associate Professor of Accounting at the Indian School of Business (ISB). His research examines the role of accounting information in capital markets, the economic consequences of regulation, ESG reporting, executive compensation, and corporate governance. His work has been published in leading academic journals, including Journal of Accounting Research, Journal of Accounting and Economics, The Accounting Review, Contemporary Accounting Research, and Review of Accounting Studies. He is also one of the founding editors of Accounting Theory and Practice, a research journal focused on India and published by Elsevier.
At ISB, he teaches core courses in Financial Accounting and the Financial Statement Analysis elective in the PGP program. In the FPM program (PhD equivalent), he teaches a course titled Capital Market Research in Accounting. His doctoral students have been placed at leading business schools, including the Indian Institute of Management Ahmedabad.
Prof. Manchiraju holds a PhD and MBA from the State University of New York at Buffalo, a Master of Financial Management (MFM) from Sri Sathya Sai Institute of Higher Learning, and a Bachelor’s degree in Commerce from Osmania University.
