Evaluating The Shortcomings Of CSR Regulations In India: The Societal Impact Caused By Leniency In Compliance
- IJLLR Journal
- May 8
- 2 min read
Rahul Muralidhar, CHRIST (Deemed To Be) University, Lavasa
Dr. Mehak Vohra Asst. Professor & Supervisor for research, CHRIST (Deemed To Be) University, Lavasa
With India particularly notable for its controlled CSR framework, Corporate Social Responsibility (CSR) has become a crucial component of corporate governance globally. Designated companies under the Enterprises Act of 2013 must spend at least 2% of their average net income on CSR initiatives. Notwithstanding this forward-looking legislation, the social effect of CSR in India remains hotly contested, largely because of laxity in compliance enforcement. Without showing a real dedication to long-term, goal-oriented society goals, companies often practice limited compliance or short-term activities to fulfill legal requirements under this situation. The relatively low level of penalties for noncompliance lets many companies misreport, mishandle, or just ignore mandatory CSR spending commitments.
By looking at the differences between normative criteria and corporate awareness and investigating the consequences of shallow compliance, this paper aims to understand the lack of compliance and the limited corporate responsibility of CSR rules in India and its resulting social impact. The study intends to offer a foundation for suggesting policy changes that could improve the positive influence of CSR standards on social development goals in India by means of doctrinal approaches. Initial study on current material reveals that the lack of rigorous compliance policies is preventing the law's goal of encouraging business involvement in the social realm from being properly realized1. Especially in underprivileged areas, non- compliance with such regulations might influence views about the larger goal of CSR, which is to use companies as engines for good in generating positive and sustainable transformation. Therefore, the uncritical suitability of CSR rules calls for a sharp assessment about how the non-penal character of CSR rules affects companies.
