Corporate Social Responsibility (CSR) In India: Legal Obligations Vs. Commercial Benefits
- IJLLR Journal
- Feb 20
- 2 min read
Priyanka Singh, LLM (Business Law), Hazra Law College, Calcutta University
ABSTRACT
Corporate Social Responsibility (CSR) refers to the ethical obligation of businesses to contribute to the well-being of society, beyond their profit- making objectives. Corporate Social Responsibility (CSR) has emerged as a key element of corporate governance in India, especially following the enactment of the Companies Act, 2013, which made CSR mandatory for certain companies. This article explores the legal obligations imposed on businesses in India regarding CSR and evaluates the commercial benefits that arise from fulfilling these obligations. It also explores the concept of CSR, examining its significance in the modern business environment, the various frameworks and strategies adopted by corporations, and the impact of CSR on organizational performance and societal development. While CSR is legally mandated, companies often derive significant commercial advantages, including improved brand image, employee engagement, and market differentiation. It highlights the role of CSR in addressing environmental sustainability, social issues, and ethical governance. The paper also considers stakeholder engagement and the importance of transparency, advocating for businesses to integrate CSR practices into their core operations to foster long-term value creation for both the company and society. In conclusion, CSR is not only a moral imperative but also a strategic approach that can enhance corporate reputation, improve customer loyalty, and lead to sustainable growth. This paper seeks to analyze the balance between legal requirements and strategic business interests, providing an insight into how companies can align their CSR efforts with their commercial objectives. It blends legal insights with practical examples and suggestions for future developments in CSR law and business strategy.
Keywords: Corporate Social Responsibility, Legal Obligations, Commercial Benefits, Companies Act 2013, Brand Image, Sustainable Development.
