Vol. 9, Issue 9, Part B (2023)

Corporate Social Responsibility is the need of the hour for every enterprise in today’s era. Companies that spend more on CSR activities as required by law gain more attention from all stakeholders. The aim of this paper is to investigate the CSR spending of the Indian automobile industry through the analysis of five Indian automobile companies over a period of four years from 2016-17 to 2019-20 with respect to the Companies Act 2013, which requires certain categories of companies to spend at least 2% of their average net profit made in the three immediately preceding financial years in pursuance of their CSR Policy. To examine the data collected from different sources, such as the annual reports and CSR reports of sample automobile companies, and to test the hypotheses, several statistical tools were used in the study, such as mean, ranking, t-test and paired t-test. The result of the study showed that the majority of the sample automobile companies are spending more than the amount prescribed by law on CSR activities. Though the difference is not statistically significant. Furthermore, the study's findings reveal a rising trend in corporate CSR spending, resulting in greater shareholder value, improved customer satisfaction, and the potential for sustainable development.