LEGAL ASPECTS OF CORPORATE SOCIAL RESPONSIBILITY: A COMPARATIVE ANALYSIS OF INDIA AND OTHER COUNTRIES

AUTHOR- MRS. PRIYANKA SINGH, LLM SCHOLAT AT BUSINESS LAW, CALCUTTA UNIVERSITY

BEST CITATION – MRS. PRIYANKA SINGH, LEGAL ASPECTS OF CORPORATE SOCIAL RESPONSIBILITY: A COMPARATIVE ANALYSIS OF INDIA AND OTHER COUNTRIES, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (1) OF 2025, PG. 492-497, APIS – 3920 – 0001 & ISSN – 2583-2344.

ABSTRACT

Corporate Social Responsibility (CSR) has evolved over the past few decades from being a voluntary practice to a significant component of corporate governance, with businesses being increasingly expected to contribute positively to society beyond mere profit generation. CSR refers to the ethical obligations of businesses to engage in actions that benefit the broader society, such as environmental sustainability, human rights, employee welfare, community development, and poverty alleviation. The growing global concern over social, economic, and environmental issues has prompted governments and organizations to integrate CSR practices into legal frameworks.

India stands out as one of the few countries with a mandatory CSR framework, introduced through the Companies Act of 2013, which requires qualifying companies to allocate a portion of their profits to socially beneficial activities. This mandatory nature of CSR in India has sparked significant debate on its effectiveness in driving sustainable corporate practices. In contrast, most countries, including the United States, European Union member states, and several emerging economies, have adopted voluntary CSR guidelines, incentivizing businesses to contribute towards social good through non-binding frameworks or tax benefits.

This article explores the legal aspects of CSR, focusing on India’s pioneering mandatory CSR law while conducting a comparative analysis with other countries’ approaches. It examines the evolution of CSR laws, the challenges faced by businesses in adhering to these regulations, and the effectiveness of different legal frameworks in fostering corporate responsibility. By doing so, it seeks to shed light on the emerging role of CSR as an essential tool for achieving sustainable development goals across diverse regions.

Keywords- CSR Legal Framework, Corporate Governance, CSR and sustainable development, Global CSR Practices, CSR Regulation Comparison, Corporate responsibility in Global Context.