CORPORATE RESPONSIBILITY IN ENVIRONMENT PROTECTION: LEGAL FRAMEWORK AND GAPS

AUTHOR – MS. DIWANSHI ROHATGI, ASSISTANT PROFESSORS AT AMITY UNIVERSITY, JHARKHAND, RANCHI

BEST CITATION – MS. DIWANSHI ROHATGI, CORPORATE RESPONSIBILITY IN ENVIRONMENT PROTECTION: LEGAL FRAMEWORK AND GAPS, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 4 (1) OF 2024, PG. 936-943, APIS – 3920 – 0001 & ISSN – 2583-2344.

Corporate Responsibility towards Environment or Corporate Environment Responsibility (CER) embodies a paradigm shift in corporate ethos, emphasizing the accountability of organizations beyond mere financial success. It encapsulates the commitment of businesses to minimize their ecological footprint, conserve resources, and proactively address environmental challenges. Moreover, corporate environment responsibility encompasses strategies that integrate environmental sustainability into core business models, fostering innovation and competitiveness while mitigating adverse impacts on ecosystems. CER is not just about altruism; it is increasingly tied to corporate reputation, customer preferences, and investor interests. Stakeholders, including consumers, investors, and regulatory bodies, are placing greater emphasis on company’s environmental practices. Businesses that prioritize CER often experience enhanced brand image, improved competitiveness, and stronger relationships with stakeholders.The paper begins by providing an overview of the legal framework on CER obligations. It explores how international agreements, such as the Paris agreement and Sustainable Development Goals, influence national legislation, creating a domino effect that shapes corporate responsibilities towards environmental conservation. However, within this framework, a notable gap lies that impede the efficacy of corporate environment responsibility. These gaps manifest in ambiguities surrounding enforcement mechanisms, inconsistencies in compliance requirements across jurisdictions, and insufficient penalties for non-compliance. Moreover, emerging environmental challenges often outpace the evolution of regulatory measures, leaving a void that corporations may exploit. The paper highlights the loopholes or shortcomings in existing environmental regulations concerning corporate responsibility, influence of stakeholders in driving corporate environment responsibility, enforcement action against corporations failing to adhere to environmental standards and, proposed reforms in legal frameworks to enhance corporate accountability in environmental protection in India.

Keywords: Corporate Environment Responsibility (CER), Legal Framework, Loopholes, enforcement action, proposed reforms.