INTRODUCTION
CSR can simply be defined as the “responsibility of enterprises for their impacts on society”1. The enterprises should have in place, a process to integrate social, environmental, ethical, human rights and consumer concerns into their business operations and core strategy in close collaboration with their stakeholders2.
As per the definition of UNIDO, Corporate Social Responsibility is a management concept in which companies seek to integrate social and environmental concerns into their business operations and stakeholder interactions aiming at achieving a balance between economic, environmental, and social imperatives known as the Triple-Bottom-Line, while meeting the expectations of both shareholders and stakeholders.3
CSR, as defined by OECD, refers to the positive contribution that businesses make to economic, social, and environmental development, hence benefiting each stakeholder; this act encourages companies to voluntarily stretch beyond their legal obligations or responsibilities and adopt responsible policies in human rights, environmentalism, fair labor practices, combating corruption, and promoting community development. In reality, it encourages ethical corporate behaviour and quality of life in the communities where those businesses operate4.
The CSR in India has undergone noteworthy progress over the years, from being a voluntary charitable activity to being legal obligation under the Companies Act, 2013. Incorporation of CSR into the essence of corporate governance has vehemently influenced how the businesses operate and engage with stakeholders.
The necessitated CSR stipulations have caused a heightened degree of corporate responsibility and openness in India. In addition to allocating certain fractions of their earnings for CSR purposes, firms are now required to report on their CSR undertakings. Incorporation of CSR into the essence of corporate governance has vehemently influenced how the businesses operate, engage with stakeholders and promote sustainable development. However, despite these advancements there are still several problems with the present-day CSR framework including lack of understanding of the concept and tokenistic efforts.5
This paper aims to explore the transition of CSR from being a discretionary one to a compulsory norm. This study explores the historical trajectories of CSR along with its contemporary regime in order to pinpoint the gaps in present statutes regarding this subject and investigate if an earlier more strategic approach to CSR could have lessened such challenges as well as improved responsibility and sustainability of corporations.
EVOLUTION AND THEORETICAL PERSPECTIVE OF CSR IN INDIA
A. Evolution of CSR6
Ancient Roots of CSR in India
The roots of CSR in India go deep into ancient cultural and religious traditions wherein charity was contemplated as a moral duty. Charity and philanthropy were an integral part of ancient Indian society through concepts like Daan in Hinduism, Zakat in Islam, and Daashant in Sikhism. Religious texts like the Atharva Veda stressed that wealth should be earned with hundreds of hands and distributed with thousands, thereby encouraging social welfare.The ancient business practices of India were indeed based on such religious and moral principles when servicing the community at large.
First Phase of CSR (1850-1914): Philanthropy and Charity
The first phase of CSR is characterized by philanthropy and charity along religious lines, wherein business families like the Tatas, Birlas, Godrej, and Bajaj were contributing to social welfare in terms of building temples, schools, and colleges. The same period also saw that rich merchants distributed their resources to help during famines and other calamities. This type of CSR was informal, irregular, and based on religious belief or social status. A well-structured policy regarding CSR did not exist, and most of the CSR activities were one-off contributions and not long-term commitments.
Second Phase (1914-1940s): Gandhian Trusteeship and Nationalism
The second wave of CSR in India was influenced by Mahatma Gandhi’s Trusteeship Theory, which motivated business leaders to use their wealth for society’s betterment and saw major industrialists take up philanthropic activities. Indian enterprises were to be the “Temples of Modern India” according to Mahatma Gandhi. Under his influence, business houses established trusts for schools and colleges and also enabled the setting up of training and scientific institutes. Birla and Jamnalal Bajaj participated in the freedom movement and social changes like anti-untouchability, women’s upliftment, and rural development.
Third phase: Post-Independence and CSR under the Mixed Economy
In post-independence India, CSR activities were shaped up by the socialist economic policies of Jawaharlal Nehru.In the third phase, CSR development under a mixed economy model took place wherein the public sector constituted the main driving force behind social and economic development. Socialist ideas enshrined in India’s Constitution, especially the idea of reducing inequality, influenced CSR activities. High taxes, licensing, and regulatory requirements were imposed on the private sector to ensure that the corporates also adhere to labor laws, environmental protection, and standards for corporate governance. There was also emphasis on the idea of corporate transparency and responsibility. PSUs were said to be increasingly involved in the socio-economic development of the region during this period. However, in the private sector, the involvement of CSR was not very significant since the government held much responsibility for social welfare.
Fourth Phase (1980-2013): Liberalization, Globalization , and voluntary CSR
Following India’s economic reforms of 1991, the economy opened up to higher participation by the private sector. This further evolved into a more strategic approach towards CSR, where business sustainability and social impact became its core. In 1965 Indian academicians, politicians and businessmen formed a national workshop on CSR with the aim of transparency, social responsibility, and periodic dialogues with the stakeholders. However these initiatives did not gather momentum. In 2009, the MoCA formulated the CSR Voluntary Guidelines, urging companies to consider social, environmental, as well as economic factors in their work processes.
B. Theoretical Approaches of CSR in India
CSR conceptualization in India was influenced by different models of theories that reflected a concept of both traditional values and global corporate governance philosophies.Therefore, these theories reflect a comprehensive view of how CSR has evolved in the country and a deeper insight into what is driving corporate governance structures in India.
Stakeholder Theory7
One of the most important inputs into CSR theory comes from R. Edward Freeman’s Stakeholder Theory, challenging the traditional shareholder-centric view about corporate governance. Corporations have responsibilities not only to shareholders but to all stakeholders, including employees, customers, suppliers, and society at large. The stakeholder model argues that the stakeholder concerns be incorporated into business practices since these are critical to long-term success and value.
With greater regulatory changes such as the new Companies Act, 2013, under which companies are obligated to undertake CSR, Stakeholder Theory has gained popularity in India. Corporates are now aware that they need to weigh in the broadened ramifications of their actions in society. The current interest in sustainability and ethical governance of corporate India supports this theory.
Concession Theory8
The Concession Theory postulates, companies are creations of the state – artificial entities owed existence to the public. Businesses exist, then, for reason other than public benefits granted but in response to societal needs as well. This basis forms the concept of Mandatory CSR, as reflected in India’s Companies Act 2013, making it compulsory for companies to allocate a certain percentage of their profits towards CSR activities. The Indian government move in making legislation of CSR obligations is thus a step in formalizing corporate responsibility as a duty owed to the society.
Corporate Citizenship Theory9
The “Corporate Citizenship Theory” by Matten, Crane, and Chapple explains how the role of business and society has also transformed with the advent of globalization. Here, business is treated as a “corporate citizen,” whose roles transcend mere profit generation to lead society into moments of social and environmental challenges. This approach is becoming more relevant in India as corporations are expected to play a more prominent role in addressing the country’s social and environmental challenges.
Collaboration Theory10
Eric Chaffee’s Collaboration Theory asserts that the corporation is a cooperative undertaking between the government and individuals who organize, operate, and own the corporation. The corporation owes its existence to this cooperation, which gives rise to fiduciary duties to society.
In this theory, CSR is justified to be the right thing to do as corporations are a product of cooperation with the state. The theory pushes CSR in situations where there is no apparent financial gain, and corporations should act in socially responsible ways even if this doesn’t directly maximize shareholder value.
C. Economic Lens on CSR11
Looking at CSR from an economic perspective, most firms have realized that socially responsible activities are profitable in the long term through building corporate reputation, customer loyalty, and investor confidence. This resonates well with the ESV Model because it expects businesses to consider the interests of stakeholders other than shareholders as long as these interests increase their long-term value creation. The Companies Act, 2013, is a take on this approach; directors are expected to act in furtherance of the interests of the company while also being supportive of employees, communities, and the environment.
LEGAL FRAMEWORK OF CSR IN INDIA
A. Section 135 of the Companies Act, 201312
This was the first watershed moment in India’s CSR journey with the enactment of Section 135 of the Companies Act, 2013 requiring every company having a net worth of ₹500 crore, turnover of ₹1,000 crore, or net profit of ₹5 crore to devote at least 2% of its average net profits made for the three financial years preceding the relevant year for CSR activities.
Further, the provision calls for the formation of a CSR Committee comprising at least three directors, out of which there should be at least one independent director(in case of public company). The Committee is to formulate, monitor, and review the CSR policy of the company, ensuring adherence on part of the company towards its legal and ethical obligation. A similar aspect of transparency also enforces the annual report through disclosure of the CSR policy, the amount spent, and reasons for non-adherence in that regard. Further Schedule VII of the Act lists out the activities that form CSR, which consist of healthcare, education, gender equality, environmental sustainability and other areas such as contributions to the government relief fund, schemes for the eradication of poverty, and rural development schemes13.
B. The Companies (CSR Policy) Rules, 2014
To provide further specific guidance on the activities of CSR, the Companies (CSR Policy) Rules 2014 were enacted. The rules state that CSR projects should be undertaken in areas where the company has its operating facilities and, inter alia, contain an exclusion from making donations or grants to political parties or undertakings that may directly benefit only the employees of the company. The projects of CSR should be handled in such a way as to be kept separate from usual business so that it serves to the wider community rather than to the company’s gain.14
C. CSR Amendments
There have been multiple changes to the CSR regulatory framework to close gaps in compliance and enhance governance.A few of them will be discussed below.
Companies (CSR Policy) Amendment Rules, 202115 has required the companies falling within CSR mandate to place its CSR policy on its website and the CSR plans to provide for timelines, estimated budget and monitoring mechnaisms. Surplus funds generated from CSR activities are allowed to be applied further for CSR projects alone and cannot be used for business purposes.The 2022 amendment16 further expanded the list of eligible entities which can act as CSR implementing agencies, thereby increasing scope to include a more diverse range of specialized organizations like public trusts and registered societies.
Further to this, during 2024, more amendments were brought forward to ease CSR reporting and compliance. The deadline for filing Form CSR-2, for instance has been reduced to now require submission of the CSR return of FY 2023-24 on or before December 31, 202417. The separate filling of CSR-2 after Form AOC-4, which is a submission of financial statements, is one more step forward toward transparency with regard to the timely reporting.
ISSUES SURROUNDING CSR POLICY IN INDIA
A. Lack of Clear Understanding of CSR
The most critical issue that is seen with the Indian CSR policy is that there is lack of comprehensive definition regarding what exactly CSR entails. The definition of CSR, as outlined in Rule 2(d) of the Companies (CSR Policy) Rules, focuses on enumerating eligible activities without articulating the concept itself. This restrictive approach creates a legal challenge, prompting superficial compliance over meaningful adoption of responsible business practices, thereby diverging from international CSR standards. Through such legislation, CSR was reduced to become simply a transactional form of financial obligation. This leads to the perception that CSR is just some add-on for corporations and does not often represent their core business responsibility18.
As opposed to the global frameworks, like that defined by UNIDO19, the European Union20, or the OECD21(which where discussed in the introduction part of the paper), which consider CSR as an integrated management approach directed toward integrating ethical, environmental, and social responsibilities within the core business strategies, India views it in terms of compulsive contributions, that do not stimulate an even more meaningful obligation toward sustainable and social practices within businesses.
Globally speaking, CSR is viewed more than just financial donations, namely responsible business operations such as reducing environmental footprint, improving stakeholder engagement, and making labor conditions better. For instance, in Milieudefensie et al. v. Royal Dutch Shell plc22 the order the court imposed on Shell to reduce its carbon emissions by 45% by 2030 underscores that social responsible corporate behaviour goes beyond mere financial contributions but rather it involves a broader obligation to mitigate negative impacts on society. However, CSR in India is more of a standalone obligation rather than being an integral part of day-to-day business operations.
The basis of this issue goes back to the historical roots of CSR in India; that is, it was established from the principle of philanthropy and charity. Traditionally, CSR is viewed as an informal voluntary act of charity by business in nature, often motivated by personal, religious or social reasons rather than any formal obligation imposed on business. Consequently, the legal framework remains rooted in this spirit of philanthropy23.
If earlier CSR practices had been based on a well-defined business responsibility model, then the law could have developed in formulating a specific and strategic definition of CSR. CSR could have been defined as a social responsibility of citizen rather than charity works. There must have been a more controlled, formatted approach followed from the very beginning, then a culture of transparency and responsibility would have emerged. This lack of legislative clarity is the root cause of the other challenges discussed further in this paper.
Therefore, CSR as a concept must evolve from just financial contributions to society and for this the Legislature must come up with better definition in 2(d) of CSR rules, 2014 that would fully capture the essence of CSR.Through CSR, companies may be required to take up sustainable supply chain practices; This may include encouraging corporates to procure raw materials from fair and certified producers who comply with labour standards such as ensuring decent wages and providing safe working conditions to labourers, or coming up with carbon offsetting programs, promoting zero-waste practices as a part of R&D etc. Including these initiatives as a part of CSR framework will help integrate genuine responsibility as a part of business practice.
B. Superficial Engagement: CSR as a PR Tool
Another legal issue with the present framework for CSR is that it allows for shallow engagement by companies. Most organisations only tick the box by ensuring that they keep their CSR spend above the statutory threshold of 2% without engaging into programs that will have longer term and scaled impact24. Among many other examples, one such company is Coca-Cola who is yet to compensate the affected villagers in Plachimada, Kerala, which amounts to over 216.25 crores25. That was to be compensated by the company for the over-exploitation of groundwater, toxic contamination of soil, groundwater, and water bodies, loss of agriculture, and health problems in Plachimada. On the other hand, the company still receives accolades for its CSR practices, with the latest being when it was awarded the Mahatma Gandhi Award for Corporate Excellence in CSR26. CSR has become a box-ticking exercise, which puts the focus on spending versus results on communities and the environment. Law must have required not only mandated to spend on CSR, but also must have required companies to ensure social and environmental responsibilities at all times while conducting the business27.
CSR is, in most instances, being used as a public relations tool rather than showing social responsibility to the public by integrating the idea into the core of the business operations of firms. Yet another example that illustrates the shallow nature of CSR is the Vedanta case, a multination mining firm. Despite criticisms of the company for violating environment standards and threatening indigenous people, like the Dongria Kondh of Odisha28, Vedanta has spent more than Rs. 1900 crore on CSR in the last five years29. The healthcare, education, and women’s empowerment programs that it supports are widespread but do not make up for the damage in the environment and in society caused by Vedanta’s core operations. This dichotomy is a cause for worry since CSR is being used by companies to enhance the corporate image but fails to take influence away from the business practice issues it’s assumed to be helping tackle. This creates a paradox, where firms are praised for doing CSR yet fail to incorporate any real responsibility into their business practice30.
These examples indicate that most corporates perform CSR only as a ‘tokenistic’ attempt to attract some good PR or to meet regulatory requirements without achieving any real or sustainable impact. This where the law fails- it focuses on mandatory spending rather than encouraging businesses to focus on sustainable practices, as underlined by international standards such as UNIDO. Therefore, through CSR, the law must also encourage the companies to incorporate responsibility as an intrinsic part of their business operation, promoting sustainability.
To address this issue, the CSR Rules, 2014 may also encourage businesss practice that will ensure respect for community needs and sustainable usage of resources by companies.
C. Rigid Scope of CSR Activities
The Schedule to section 135 of the Companies Act is that only expenses in CSR in defined categories under Schedule VII are permissible, thus circumscribing the scope of permissible CSR activities. Rigidities of this kind prevent companies from responding to emerging societal needs and innovation in their CSR strategies. For instance, during COVID-19, several productive corporate actions like the salaries paid to workers or using its assets to create social well-being were not regarded as CSR within the limits of the law, even though they brought about vital social impact31. For example, in response to the pandemic, the Mahindra Group repurposed the factories to manufacture ventilators, an act of great social utility.32 However, this wouldn’t be considered as CSR under Schedule VII of the Companies Act which had a narrow list of CSR activities. The narrow approach of CSR as charity in the past continues into the legal framework confining companies to a set list of permissible CSR activities, choking off innovation and responsiveness to emergent needs in society.
If CSR during the period of liberalization had encouraged a more strategic and flexible nature-management system that allowed businesses to align their CSR engagements more with their core competencies, the legal environment of today might allow greater freedom to choose CSR initiatives that suit their businesses.
This may be solved by expanding the scope of Schedule VII to include diverse activities like supporting local business, skill development programs etc.
D. Geographic and Sectoral Imbalance in CSR Spending33
Another significant flaw in CSR spending is the unequal geographical distribution. Most companies appears to on invest in states where it is known to operate rather than in ones that need it most. Therefore, most CSR investments end up in the pockets of more prominent wealthier states and industrial hubs, while the less developed regions end up forgotten. This problem primarily arises because proviso to subsection (5) of Sec 135 of Companies Act34 requires companies to spend funds on locality where the entity operates.
The report by 202035 stated that CSR funds are mainly concentrated in those states that are considered to be wealthier. These include Maharashtra and Karnataka. However, states like Bihar and the Northeast have received very little contribution in comparison. This unbalance can be reflected in the tendency of the geographic bias of how the companies fund their CSR with priority usually given to regions in which the operational bases exist.
The national CSR schemes could have been started for building a national, rather than localized, approach towards organizing corporate responsibility, such that the funds disbursed under CSR were passed on to regions and sectors of the greatest need.
To cure this imbalance, the central government, in collaboration with the local government, may identify and list out regions with low HDI scores as area of high-priority and require that priority must be given to those regions for the purpose of CSR. This will ensure a balanced distribution of funds, even if such regions do not attract huge business investments.
E. Lack of Impact Assessment Mechanisms in CSR36
Another drawback with the law is that there is an absence of robust mechanisms for measuring the impact of CSR activities beyond basic reporting requirements. Though, the Companies are simply mandated to disclose their CSR activities and expenditure in the Board’s Annual Report under Rule 8 of the Companies (CSR Policy) Rules, 2014, it only ensures transparency in financial spending rather than measuring the actual impact of such activities. Although the impact assessments have been incorporated in the 2021 amendment to companies having a CSR obligation of more than INR 10 crore, yet this is applicable only for large-scale projects and leaves a large part of CSR activities without any such analyses37. Moreover, absence of independent audits or third-party evaluations also hinders the ability to assess the effectiveness and impact of these initiatives on intended beneficiaries.
In order to rectify this that law must also incorporate stronger enforcement mechanisms such as independent audits and move away from the “comply or explain” regime to see that CSR mandate is both financially complied and is also yielding meaningful outcomes.
FINDINGS
A. While the CSR in India has shifted from a voluntary, philanthropic activity to a legally mandated requirement, the legal framework is still rooted in donating profits rather than
strategic integration of social responsibility into core business practices.
B. The study has identified few issues in the current CSR framework, including lack of understanding of what CSR means, superficial involvement by companies, rigid scope of activities and geographical and sectoral imbalances in CSR spending.
SUGGESTIONS
C. Expand the legal definition of CSR given under Rule 2(d) of Company(CSR Policy) Rules, 2014 which would align with definition of international frameworks such as OECD and UNIDO so so to incorporate sustainable business operations.
D. Broaden the scope of activities mentioned Schedule VII to align with emerging society needs such as supporting local business, skill development programs etc
E. Substitute proviso to S.135(5) to prioritize CSR spending on underdeveloped regions of the country rather than focusing on locality where the company operates.
CONCLUSION
One of the landmark development in corporate governance in India is the transition of CSR from its earlier voluntary nature to a statutory obligation on the part of companies. Despite a high degree of transparency and responsibility defining the formal CSR scenario, the system remains largely confined to mandatory spending, which has led most organizations to come up with tokenistic efforts.
A more strategic and dynamic approach, combined with stronger enforcement mechanisms, a greater focus on long-term sustainability, and rectification of geographical and sectoral imbalances in CSR spending together with realignment of CSR with proper international standards, will inspire CSR to become a tool that contributes to the enhancement of corporate responsibility and societal development. Moving forward, the Indian CSR framework must evolve into a more serious commitment by the corporations towards sustainability practice and incorporate it into the fabric of corporate strategy rather than treating it as a regulatory checkbox.
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Footnotes
1. European Commission, A Renewed European Union Strategy 2011-14 for Corporate Social Responsibility, COM (2011) 681, 9 3.1.
2. World Business Council for Sustainable Development, Corporate Social Responsibility: Meting Changing Expectations, 3, available at wbcsd.org .
3. The United Nations Industrial Development Organization (UNIDO) defines CSR as “a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives (“Triple-Bottom-Line- Approach”), while at the same time addressing the expectations of shareholders and stakeholders.” United Nations Industrial Development Organization (UNIDO), What is CSR? https://www.unido.org/our-focus-advancing-economic-competitiveness-competitive-trade-capacities-and-corporate-responsibility-corporate-social-responsibility-market-integration/what-csr .
4. Corporate Social Responsibility, according to OECD refers to how the business is supposed to add its parts in the realization of sustainable development through the creation of a good extent of economic, social and environmental benefits associated with all the stakeholders involved. OECD Guidelines for Multinational Enterprises encourage companies to take corporate responsibility voluntarily so that they can operate above and beyond legal or regulatory requirements and to embrace responsible practices in different directions like sustainable development, human rights, environmental protection, fair labor practice, and to combat corruption. According to OECD, CSR refers to an activity that promotes ethics in the business practices of corporations and develops growth, respects human rights, and enhances the quality of life of the communities where companies conduct their operations. OECD Guidelines for Multinational Enterprises (2011)OECD (2023), OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, OECD Publishing, Paris, https://doi.org/10.1787/81f92357-en.
5. Nitin Kumar, ‘Corporate Social Responsibility: An Analysis of Impact and Challenges in India’ (2019) 3(2) Int J Soc Sci Manag & Entrepreneurship 53, 63 (SAGE Global Publishers).
6. Kalpana Sharma, ‘Corporate Social Responsibility (CSR): An Overview of the Indian Perspective’ (2016) 3 Indian JL & Pub Polly.
7. Kirthana Singh Khurana, ‘Mandatory CSR in India – A Trailblazer from the East’ (2022) 9 BRICS LJ 8.
8. Akshaya Kamalnath, ‘A Post Pandemic Analysis of CSR in India’ (2021) 16 J Comp L 714.
9. K. Balasubramanian, David Kimber and Fran Siemensma, ‘Emerging Opportunities or Traditions Reinforced? An Analysis of the Attitudes towards CSR, and Trends of Thinking about CSR, in India’ (2005) 17 Journal of Corporate Citizenship 79 -92.
10. Akshaya Kamalnath, ‘A Post Pandemic Analysis of CSR in India’ (2021) 16 J Comp L 714.
11. Kirthana Singh Khurana, ‘Mandatory CSR in India – A Trailblazer from the East’ (2022) 9 BRICS LJ 8.
12. Saurabh Kumar, ‘Corporate Social Responsibility in India’ (2023) 5 Indian JL & Legal Research 1.
13. The Companies Act 2013, No. 18 of 2013, s 135, Gazette of India, Extraordinary, Part II, Section 1, 30 August 2013.
14. The Companies (CSR Policy) Rules, 2014.
15. Companies (Corporate Social Responsibility Policy) Amendment Rules 2021, GSR 40(E), Gazette of India, Extraordinary, Part II, Section 3(i), 22 January 2021.
16. Companies (Corporate Social Responsibility Policy) Amendment Rules 2022, GSR 107(E), Gazette of India, Extraordinary, Part II, Section 3(i), 11 February 2022.
17. ‘MCA Shortens Window for CSR Return Filing for 2023-24’(The Hindu BusinessLine, 26 September 2024) available at https://www.thehindubusinessline.com/economy/mca-shortens-window-for-csr-return-filing-for-2023-24/article68686182.ece .
18. P S Narayan and others, ‘CSR: Practice, Theory, and Challenges’ (2012) 37 Vikalpa 73.
19. The United Nations Industrial Development Organization (UNIDO) defines CSR as “a management concept whereby companies integrate social and environmental concerns in their business operations and interactions with their stakeholders. CSR is generally understood as being the way through which a company achieves a balance of economic, environmental and social imperatives (“Triple-Bottom-Line- Approach”), while at the same time addressing the expectations of shareholders and stakeholders.” United Nations Industrial Development Organization (UNIDO), What is CSR? https://www.unido.org/our-focus-advancing-economic-competitiveness-competitive-trade-capacities-and-corporate-responsibility-corporate-social-responsibility-market-integration/what-csr .
20. The European Union defines CSR as “the responsibility of enterprises for their impacts on society.” European Commission, A Renewed EU Strategy 2011-14 for Corporate Social Responsibility (COM(2011) 681 final). https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=CELEX%3A52011DC0681.
21. Corporate Social Responsibility, according to OECD refers to how the business is supposed to add its parts in the realization of sustainable development through the creation of a good extent of economic, social and environmental benefits associated with all the stakeholders involved. OECD Guidelines for Multinational Enterprises encourage companies to take corporate responsibility voluntarily so that they can operate above and beyond legal or regulatory requirements and to embrace responsible practices in different directions like sustainable development, human rights, environmental protection, fair labor practice, and to combat corruption. According to OECD, CSR refers to an activity that promotes ethics in the business practices of corporations and develops growth, respects human rights, and enhances the quality of life of the communities where companies conduct their operations. OECD Guidelines for Multinational Enterprises (2011)OECD (2023), OECD Guidelines for Multinational Enterprises on Responsible Business Conduct, OECD Publishing, Paris, https://doi.org/10.1787/81f92357-en.
22. Milieudefensie et al. v. Royal Dutch Shell plc (District Court of The Hague, 26 May 2021) ECLI:NL:RBDHA:2021:5337.
23. Saurabh Kumar, ‘Corporate Social Responsibility in India’ (2023) 5 Indian JL & Legal Research 1.
24. Sanjeev Gupta and Nidhi Sharma, ‘CSR – A Business Opportunity’ (2009) 44 Indian Journal of Industrial Relations 396 . available at https://www.jstor.org/stable/27768212 .
25. Shreehari Paliath, ‘Polluter Didn’t Pay: Plachimada Awaits Compensation from Coca-Cola, 2 Decades On’, Down to Earth (18 October 2022). https://www.downtoearth.org.in/pollution/polluter-didn-t-pay-plachimada-awaits-compensation-from-coca-cola-2-decades-on-85357 .
26. Coca-Cola India Honoured with Mahatma Gandhi Award for Transformative CSR Contributions (Manufacturing Today, 8 October 2024). https://www.manufacturingtodayindia.com/coca-cola-india-honoured-with-mahatma-award-for-transformative-csr-contributions#:~:text=CSR-,Coca%2DCola%20India%20honoured%20with%20Mahatma%20Gandhi%20Award%20for%20transformative,environmental%20responsibility%20and%20community%20empowerment
27. Nandha Kumar S. A., ‘Corporate Social Responsibility: Fallacies in Its Effective Implementation in India’ (2021) 4 Int’l JL Mgmt & Human 2362.
28. ‘Vedanta Resources Lawsuit (re Dongria Kondh in Orissa)’ (Business & Human Rights Resource Centre). https://www.business-humanrights.org/en/latest-news/vedanta-resources-lawsuit-re-dongria-kondh-in-orissa/.
29. ‘Vedanta’s CSR Initiatives Impacted Lives of 4.23 Crore People in FY21’ (The Economic Times, 2 September 2021). https://economictimes.indiatimes.com/news/company/corporate-trends/vedantas-csr-initiatives-impacted-lives-of-4-23-crore-people-in-fy21/articleshow/85866166.cms .
30. Akshaya Kamalnath, ‘A Post Pandemic Analysis of CSR in India’ (2021) 16 J Comp L 714.
31. Akshaya Kamalnath, ‘A Post Pandemic Analysis of CSR in India’ (2021) 16 J Comp L 714 .
32. Mahindra Group to Use Manufacturing Facilities to Make Ventilators’ (The Hindu BusinessLine, 22 March 2020). https://www.thehindubusinessline.com/companies/mahindra-to-use-manufacturing-facilities-to-make-ventilators/article31136084.ece .
33. P S Narayan and others, ‘CSR: Practice, Theory, and Challenges’ (2012) 37 Vikalpa 73.
34. The Companies Act 2013, No. 18 of 2013, s 135, Gazette of India, Extraordinary, Part II, Section 1, 30 August 2013.
35. Ministry of Corporate Affairs, CSR Report 2020. https://www.mca.gov.in.
36. P S Narayan and others, ‘CSR: Practice, Theory, and Challenges’ (2012) 37 Vikalpa 73.
37. Companies (Corporate Social Responsibility Policy) Amendment Rules 2021, GSR 40(E), Gazette of India, Extraordinary, Part II, Section 3(i), 22 January 2021.