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Abstract

The document discusses the legal framework and implementation of Corporate Social Responsibility (CSR) in India, highlighting the mandatory requirement for certain companies to allocate 2% of their profits to CSR activities as per the Companies Act, 2013. It identifies challenges such as vague guidelines, inconsistent implementation, and inadequate enforcement mechanisms that hinder the effectiveness of CSR initiatives. The research recommends reforms to enhance accountability and align CSR efforts with national development goals and the UN Sustainable Development Goals.

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5 views2 pages

Abstract

The document discusses the legal framework and implementation of Corporate Social Responsibility (CSR) in India, highlighting the mandatory requirement for certain companies to allocate 2% of their profits to CSR activities as per the Companies Act, 2013. It identifies challenges such as vague guidelines, inconsistent implementation, and inadequate enforcement mechanisms that hinder the effectiveness of CSR initiatives. The research recommends reforms to enhance accountability and align CSR efforts with national development goals and the UN Sustainable Development Goals.

Uploaded by

furqan.fuqi78
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

CORPORATE SOCIAL RESPONSIBILITY IN INDIA: LEGAL

FRAMEWORK, IMPLEMENTATION, AND IMPACT ASSESSMENT

Author: Md Furqan Rashid

Author: Ajay Meena

ABSTRACT
India is one of the few countries to make ‘Corporate Social Responsibility’ (CSR) mandatory
for qualifying companies.

According to Section 135 of the Companies Act, 2013 companies with a net worth of at least
Rs. 5 billion, a turnover of at least Rs. 10 billion, or a net profit of at least Rs. 50 million to
spend at least 2% of their average net profit from the preceding three financial years on CSR
activities.

Although the mandatory provision for CSR is driven by ambiguous goals, its implementation
faces significant challenges. The lacking of specific guidelines in legal framework on what
qualifies as valid CSR activities grants wide discretion to companies often leading in projects
that are more focused on legal compliance than achieving genuine social impact. While there
is a broad categories listed in Schedule VII of the Companies Act, 2013 , lack of precise and
specific guidelines on what constitutes as eligible CSR initiatives creates scope for
inconsistent implementation and possible misuse. This has led to concerns that CSR is
frequently perceived as a mere "tick-box exercise," where businesses prioritize easily
quantifiable efforts such as charitable donations, rather than initiatives aligned with their
core businesses or tackling deeper societal challenges.

Furthermore this legal framework’s effectiveness is hampered by inadequate enforcement


mechanisms and the absence of robust monitoring systems, which weaken accountability.

This research, titled “Corporate Social Responsibility in India: Legal Framework,


Implementation, and Impact Assessment”, critically examines the legal provisions, practical
implementation, and socio-economic impact of CSR in India. It explores how the statutory
mandate has influenced corporate behaviour, stakeholder engagement, and sustainable
development initiatives.
The paper concludes by recommending legal and policy reforms aimed at enhancing
accountability, transparency, and alignment of CSR initiatives with national development
priorities and the UN Sustainable Development Goals (SDGs).

The study adopts a doctrinal research methodology, relying on an in-depth examination of


statutory provisions, rules, circulars, government guidelines, and relevant judicial
pronouncements. A comparative legal approach is also employed to evaluate India’s CSR
framework vis-à-vis global practices

Keywords: Corporate Social Responsibility, Companies Act 2013, Legal Framework,


Implementation, Impact Assessment, Sustainable Development Initiatives.

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