Corporate Social Responsibility: Legal Issues Vs Ethical Obligations
- IJLLR Journal
- May 8
- 2 min read
Prabhmeet Kaur, Amity University Noida, Uttar Pradesh
1. COMPARATIVE ANALYSIS: LEGAL VS ETHICAL OBLIGATIONS
1.1 KEY DIFFERENCES BETWEEN LEGAL AND ETHICAL CSR OBLIGATIONS
In today’s business world, Corporate Social Responsibility (CSR) is no longer just a “nice-to-have” — it’s become an essential part of how companies operate. With growing global awareness around issues like social justice, climate change, and fair labor practices, businesses are expected to go beyond simply making a profit. They’re called to play a meaningful role in supporting people and the planet.
But when we talk about CSR, it’s important to separate two distinct ideas: legal obligations and ethical obligations. While both influence corporate behavior, they operate in different ways and serve different purposes. This section unpacks the key differences between them — how they’re defined, enforced, motivated, and measured.
i. Definition and Nature of Obligations
Legal CSR is all about what’s required by law. These are the non-negotiable duties businesses must follow to stay on the right side of national and international regulations. That includes rules around fair wages, anti-discrimination, environmental protection, anti- corruption, and corporate governance. Failing to meet these standards means risking penalties, fines, or even legal action.
On the other hand, ethical CSR isn’t written into law — it’s guided by a company’s own values and social conscience. Ethical responsibilities go beyond what’s legally required, rooted in ideas like fairness, honesty, compassion, and long-term sustainability. These are the actions a business takes because it’s the right thing to do, not because someone is forcing them.
For example:
A company is legally required to provide a safe working environment. But ethically, it might go further by offering mental health support, above-minimum wages, or volunteer days for employees — simply because it cares about their well-being.
