Abstract
Investing in employee welfare and training has garnered significant attention as a strategic imperative for organizations, particularly within the realm of internal corporate social responsibility (CSR). This study delves into how new ventures and incumbent firms in emerging economies, specifically India, vary in their approach to investing in employee welfare and training. Utilizing a dataset of Indian firms spanning from 1989 to 2022, we explore the impact of financial constraints and the introduction of creditor reforms on these investment patterns. Our findings indicate that new ventures allocate a higher proportion of their resources to employee welfare and training compared to incumbent firms. Furthermore, this propensity is amplified following the 2016 introduction of the Insolvency and Bankruptcy Code (IBC), which eased access to credit. This study contributes to the literature by highlighting the critical role of financial accessibility in shaping CSR strategies and underscores the importance of supportive policy frameworks in fostering entrepreneurial ecosystems in emerging markets.