Corporate Social Responsibility Obligations Under The Companies Act, 2013: A Critical Analysis

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Kamal Kumar, Assistant Professor, BRCM Law College, Bahal, Bhiwani

ABSTRACT

Corporate Social Responsibility (CSR) represents a paradigm shift in the role of corporations from mere profit-generating entities to socially accountable institutions. India became the first country in the world to mandate CSR spending through Section 135 of the Companies Act, 2013. This legislative innovation reflects the State’s attempt to integrate corporate participation into national development goals. This research paper critically examines the statutory framework governing CSR in India, tracing its evolution, objectives, implementation mechanisms, compliance requirements, judicial interpretations, and socio-economic impact. It also evaluates the challenges faced in operationalizing CSR, including governance deficiencies, accountability issues, uneven distribution of funds, and the tension between mandatory spending and voluntary philanthropy. Through comparative analysis with global CSR models, the paper highlights India’s unique approach and proposes reforms aimed at strengthening transparency, impact measurement, and corporate engagement. The study concludes that while India’s CSR regime has significantly enhanced corporate participation in social welfare, structural refinements are necessary to ensure meaningful, sustainable, and equitable outcomes.

Keywords: Corporate Social Responsibility, Companies Act 2013, Section 135, Mandatory CSR, Corporate Governance, Sustainable Development.

511. CORPORATE SOCIAL RESPONSIBILITY OBLIGATIONS UNDER THE COMPANIES ACT, 2013- A CRITICAL

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