Corporate Social Responsibility Under Section 135 Of The Companies Act, 2013: A Legal Obligation Or A Moral Imperative?
- IJLLR Journal
- Dec 9, 2025
- 1 min read
Rashneet Kaur, B.A. LL.B., Apex University, Jaipur
ABSTRACT
Corporate Social Responsibility (CSR) has evolved globally from a voluntary moral practice into a structured component of modern corporate governance. Originating from Howard Bowen’s seminal work in the 1950s, CSR initially focused on the ethical obligations of businesses towards society. Over subsequent decades, scholarly contributions expanded its meaning—particularly during the 1960s and 1970s—emphasising corporate accountability, social performance, and public responsibility. In India, the concept gradually matured through philanthropic traditions and expanding stakeholder expectations before acquiring a robust legal character with the enactment of Section 135 of the Companies Act, 2013. This legislation made CSR spending mandatory for qualifying companies, positioning India as the first country to legally require corporate participation in social development. The statutory model seeks to integrate CSR into business strategy by obligating firms to allocate a portion of their profits toward approved social initiatives. However, this legal transition raises a critical question: does mandating CSR transform it into a mere compliance exercise, undermining its ethical and voluntary essence? This paper examines the philosophical foundations, legislative framework, and practical implications of Section 135 to evaluate whether CSR in India functions primarily as a regulatory obligation or whether it retains the potential to operate as a transformative moral and societal imperative. Through a critical analysis of the evolution of CSR, enforcement mechanisms, and corporate behavioural trends, the paper argues that while legal mandates ensure participation, the true impact of CSR depends on whether companies internalise it as an ethical responsibility rather than a statutory burden.
Keywords: Corporate Social Responsibility (CSR), Section 135, Companies Act 2013, Mandatory CSR Framework, Corporate Legal Obligations, Ethical Corporate Conduct.
