From Corporate Charity To Legal Obligation: The Transformation Of CSR In India
- IJLLR Journal
- Aug 21
- 1 min read
Ms Shaila Mehmood, Assistant Professor of Law, AMU Centre Murshidabad
ABSTRACT
India pioneered a radical shift in corporate social responsibility (CSR) by transitioning it from a domain of voluntary philanthropy to a statutorily mandated obligation for certain companies. Enacted through Section 135 of the Companies Act, 2013, and the accompa- nying Companies (Corporate Social Responsibility Policy) Rules, 2014, this framework mandates eligible companies to spend at least 2% of their average net profits on CSR activities. This paper critically examines this transformation, tracing the historical evo- lution of CSR in India, analyzing the legal architecture of the mandate, evaluating its implementation challenges and judicial interpretations, and debating its effectiveness and future trajectory. Drawing on statutory provisions, case law, government notifications, and scholarly critique, the paper argues that while the legal mandate has significantly increased CSR expenditure and brought corporate social engagement into mainstream governance, it faces persistent challenges regarding compliance quality, strategic align- ment, monitoring efficacy, and the fundamental tension between compulsion and genuine commitment. The paper concludes that the Indian model represents a bold experiment in corporate accountability, demanding continuous refinement to balance legal obligation with impactful, strategic social investment.
Keywords: Corporate Social Responsibility (CSR), Companies Act 2013, Section 135, CSR Rules, Mandatory CSR, Corporate Philanthropy, India, Corporate Governance, Legal Obligation, Social Development.
