Navigating Corporate Social Responsibility: Insights From The Indian Landscape

Srishti Malhotra, BA LLB (H), Amity Law School, Noida, AUUP

ABSTRACT

Business and society have undergone a transformative shift in the past two decades. This shift has given rise to Corporate Social Responsibility (CSR), emphasising business responsiveness to stakeholders' legal, ethical, social, and environmental expectations.

This paper traces the historical development of CSR in India through four phases, reflecting changing societal expectations and business dynamics. The enactment of Section 135 of the Companies Act 2013 made CSR spending mandatory for companies meeting specified criteria, contributing to India's unique position as the first country to mandate CSR through statutory provision. Challenges persist, including the complexity of compliance and taxation issues and concerns about outsourcing public welfare responsibilities to the corporate sector.

This paper explores risks and criticisms of CSR in India, emphasising the need to consider taxation, avoid encroachments on the state's welfare responsibilities, and empower companies to choose CSR activities aligned with societal needs. Ultimately, the study highlights the significance of CSR in fostering a symbiotic relationship between businesses and society and calls for refining policies to maximise its positive impact in India.

Keywords: Corporate Social Responsibility, Socio-Economic Evolution, Stakeholder Relationships