Corporate Social Responsibility: Compliance Burden Or Strategic Tool?
- IJLLR Journal
- Jul 13
- 1 min read
Shubha M, B.A. LL.B., Christ Academy Institute of Law, Bangalore
ABSTRACT
Is corporate social responsibility (CSR) a legal requirement, a strategic weapon, or both? This research article critically examines the dual nature of CSR and outlines the path by which companies in India can utilize CSR as a strategic advantage or as a burden to bear in light of legal enactments. This study is rooted in the context of rapidly changing theoretical underpinnings of CSR, and how it has been metamorphosed over the years in terms from its beginnings as a philanthropic act to a formality by being made a statutory obligation under Section 135 of the Companies Act, 2013
Based on the comparative legal perspective, the paper compares the laws of India regarding the CSR framework against the international model of laws, like the stakeholder-oriented CSR model in the United Kingdom, the market- oriented CSR model of the United States, and the South African CSR model integrated into its governance. Using the trends in judicial practices and the case studies of companies, the paper assesses the problem of legal enforcement, compliance fatigue, and the threat of tokenism. In its turn, it also emphasizes the potential of CSR in the improvement of brand equity, investor confidence, and meeting ESG and SDG objectives. Lastly, the paper offers robust policy suggestions that combine responsibility and adaptability, arguing for a shift towards genuine strategic incorporation, rather than merely box-ticking compliance. The conclusion envisions CSR as a win-win chance of sustainable and responsible capitalism, rather than as a legal obligation.
Keywords: Corporate Social Responsibility, Compliance, Strategic Tools, Companies Act 2013, ESG, Corporate Governance
