CSR Audit Reporting Practices: An Evaluation of BSE - Listed Companies

Abstract

The mandatory corporate social responsibility (CSR) regime in India, under Section 135 of the Companies Act, 2013, mandates corporate spending, establishing CSR as a legal compliance obligation. This study evaluates CSR reporting practices among BSE - listed companies, analyzing the regulatory shift from mandatory expenditure monitoring (Companies Act) to mandatory assurance of non - financial performance (SEBI Business Responsibility and Sustainability Reporting, or BRSR Core). Utilizing a simulated Content Analysis methodology based on a multi - dimensional CSR Reporting Quality Index (CRQI), the evaluation reveals high statutory financial compliance (Pillar 1 score 4.7/5.0) coexisting with significantly low maturity in outcome reporting (Pillar 2 score 2.1/5.0) and assurance readiness (Pillar 4 score 1.9/5.0). This systemic deficit in data rigor and internal controls results in low transparency, fostering stakeholder skepticism regarding social impact. The findings confirm that the transition to mandatory reasonable assurance on BRSR Core metrics is a direct regulatory corrective measure, essential for mitigating informational asymmetry, enhancing corporate governance, and strengthening market integrity by aligning disclosures with global standards (e.g., ISAE 3000/SSAE 3000).

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