“Corporate Social Responsibility” and ESG Compliance: Examining the Legal Obligations of Corporations Under “Environmental, Social, and Governance” (ESG) Standards and their Impact on Global Business Practices
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“Corporate Social Responsibility” and ESG Compliance: Examining the Legal Obligations of Corporations Under “Environmental, Social, and Governance” (ESG) Standards and their Impact on Global Business Practices
Author: Swati Bajaj Seth, Associate Professor, IILM University
Co Author: Kirti Singh, LLM Student, IILM University
Abstract
The rise of ESG practices, coupled with Corporate Social Responsibility (CSR) regulations, has transformed the global business landscape, emphasizing sustainability, accountability, and transparency. ESG reporting serves as a critical tool for evaluating non-financial performance, addressing environmental and social risks, and enhancing governance standards. This paper examines the evolution of ESG compliance frameworks, particularly in India, highlighting the significance of mandatory disclosures like the Business Responsibility and Sustainability Reporting (BRSR) framework under SEBI. It explores the interplay between CSR and ESG, underscoring how these principles collectively foster economic growth while addressing societal challenges. Key challenges, such as data inconsistencies, greenwashing, and lack of standardized reporting, are also discussed, along with recommendations for robust enforcement and stakeholder engagement. The findings emphasize that integrating ESG principles into corporate strategies is no longer optional but a critical pathway to sustainable development and long-term resilience. Indian corporations are positioned to emerge as global leaders in sustainability by adopting innovative practices and aligning with international frameworks. The paper concludes by advocating for a harmonious balance between profit-making and value creation, ensuring a sustainable and equitable future for businesses and stakeholders alike.
Keywords
ESG, Corporate Social Responsibility (CSR), Business Responsibility and Sustainability Reporting (BRSR), Stakeholder Engagement
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