A Corporate Sector is an integral part of the society consisting of industries and firms. Their operations affect the various stakeholders of the society. The achievement is depends on the society. These industries and firms needs the inputs from the society and their outputs (goods & services) are also consumed by the society. This leads the industries towards the betterment of the society. These considerations of industries and firms can be termed as “Corporate Social Responsibility”. CSR is becoming an important activity to companies in India. The Govt. of India issued a number of guidelines for CSR practices time to time. In order to streamline the CSR practices, the Govt. of India made CSR as mandatory for companies under the companies act, 2013. As per the companies act 2013, profitable companies will have to spend at least 2 % of their average net profit over the preceding three financial year on CSR activities. Through the present study researcher has drawn a comparison of CSR practices of select Manufacturing Sector Companies and Service Sector Companies. This paper also examines whether any improvement in CSR spending by companies after the amendment of company law in 2013. 

KEYWORDS:  CSR, CSR Spending, Manufacturing Companies, Service Companies.

Introduction Corporate Social Responsibility (CSR) is a business approach that contributes to sustainable development by delivering economic, social and environmental benefits for all stakeholders [1]. In other words it can be said that CSR is an ethical behavior of organizations, in which they consider the interests of society by taking liability for the impact of their activities environment as well as various groups of society such as customers, employees, shareholders, suppliers, communities and other stakeholders. Globally, business organizations are under pressure to demonstrate themselves as responsible entities in front of society. Even in India, many business organizations have accepted their duties towards society. These business organizations are investing huge amount on the various welfare activities for the people of the society. It has seen that these activities not being prescriptive in nature. As a result, the Ministry of Corporate Affairs, Govt. of India introducing the CSR as mandatory for certain category of corporate houses.

Importance of the Study  

In India, CSR initiatives are taken by many companies. These companies are related to various sectors i.e. construction, manufacturing and service sector etc. As we know that economic actions of manufacturing sector companies are more effect the environment than service sector companies. It has seen that companies which affect environment directly are more aware towards Corporate Social Responsibility. In this study the researcher has tried to focus the CSR contribution of both manufacturing and service sector companies.