Corporate Social Responsibility in India: A Legal Examination

Abstract

Corporate Social Responsibility (CSR) is defined by the Companies (Corporate Social Responsibility Policy) Rules, 2014, as amended in 2021, as “the activities undertaken by a Company in pursuance of its statutory obligation laid down in section 135 of the Act”. In simple terms, Corporate Social Responsibility means that companies have a duty to contribute ethically and positively to society while conducting their business. Corporate Social Responsibility draws on the Triple Bottom Line approach, which measures a company’s success along three dimensions, people, planet and profit, and not by financial gain alone. This article examines Corporate Social Responsibility from a legal perspective, discussing its evolution and how it is treated under Indian law. It also explains the role of law in promoting Corporate Social Responsibility, why companies should engage in Corporate Social Responsibility activities, and the challenges faced in implementing and enforcing Corporate Social Responsibility.