Abstract
Corporate Social Responsibility (CSR) in India marks a significant change in legislation. It turned voluntary giving into a legal requirement under Section 135 of the Companies Act, 2013. This made India the first country to require CSR by law. Indian companies spend over ₹25,000 crore each year, but there are still concerns about the real impact, transparency, and direction of these efforts. This article looks closely at the development of CSR in India. It examines the legal framework and identifies key challenges, including spending driven by compliance, uneven distribution of resources, and the absence of impact assessments. It argues for shifting the perspective from obligation to opportunity. Using examples from India and around the world, it redefines CSR. Instead of viewing it as a charitable task, it should be seen as a strategic investment. This approach can lead to inclusive growth, build brand trust, and support long-term business stability. The article wraps up with practical suggestions. It aims to transform CSR into a meaningful tool for building the nation, engaging stakeholders, and promoting sustainable corporate governance. This way, doing good can also mean doing good business.
Keywords: Corporate Social Responsibility (CSR), Companies Act 2013, Strategic CSR, ESG, Sustainable Development Goals (SDGs), CSR Law in India, CSR Compliance, Shared Value.
Introduction
India is a nation of paradoxes: enormous economic growth alongside constant inequality. In such a prospect, Corporate Social Responsibility (CSR) offers a decisive opportunity for the private sector to participate actively in the nation’s development. CSR in India has evolved from a philanthropic concept to a legal mandate. CSR in India has evolved from a charitable idea to a legal mandate in section 135 of the Companies Act, 2013.[1] These standards require eligible companies to give 2% of their net profit to social causes. This raises concerns about requiring philanthropy, even though many people saw it as a progressive step. Likewise, CSR has evolved as a meaningful tool for development, or is it just corporate compliance? With over Rs 25000 crore flowing through CSR every year, the sector still struggles with indistinct impact, poor transparency, and limited strategic integration.[2]
This article seeks to assess CSR as a mandated legal responsibility, whether it genuinely acts as a community upliftment and nation-building tool, or it merely serves as a compliance mechanism. This article also examines the evolution, legal framework, challenges, and transformation while comparing with international frameworks like Environmental, Social, and Governance (ESG) norms and United Nations Sustainable Development Goals (SDGs). This article suggests how CSR can work as a dual impact mechanism, contributing to social development while strengthening brand value and stakeholder trust.
[1]“Companies Act, 2013” <https://www.mca.gov.in/content/mca/global/en/acts-rules/companies-act/companies-act-2013.html>
[2]“Integrated CSR Solutions | TeamLease Foundation” <https://teamleasefoundation.org/faq.html>