ABSTRACT

Corporate Social Responsibility (CSR) has become a crucial aspect of contemporary business practices, reflecting a shift towards sustainable and ethical business operations. This paper offers a comprehensive examination of the idea of CSR and ESG tracing its historical evolution, theoretical underpinnings, and practical implications. The paper explores various dimensions of CSR, including environmental sustainability, ethical leadership, stakeholder engagement, and community development. Additionally, it investigates the motivations behind CSR initiatives, the challenges faced by companies in implementing CSR strategies, and the potential benefits for both businesses and society at large.

It commences by providing an in-depth discussion on the definition and significance of CSR and ESG factors in business practices. It highlights the relevance of integrating these practices into the operations of corporations and their wider influence on the social order and the environment. Subsequently, this paper thoroughly examines the legal frameworks governing CSR and ESG practices at different levels, encompassing, regional, and national perspectives. By analysing various approaches adopted by companies, the research identifies the strengths and weaknesses of these approaches in promoting CSR and ESG practices. This research paper also makes suggestions for enhancing the legal environment for encouraging sustainable business practices. It suggests ways to strengthen legal provisions on CSR and also some ways to strengthen ESG practices and enhance stakeholder engagement to promote sustainability in corporations. It also highlights the need for further research on the effectiveness of legal frameworks in promoting sustainable business practices.

This paper also synthesises existing research and provides insights into future directions, this paper aims to contribute to a deeper understanding of CSR and its role in shaping responsible and sustainable business practices.