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Legal Framework and Impact of Corporate Social Responsibility on Environmental  Sustainability in India

Akash Manwani

Introduction

Corporate Social Responsibility (CSR) has undergone significant evolution from its philanthropic origins to a formalized concept influencing modern business practices. In India, CSR has deep cultural ties to philanthropy and charity, influenced heavily by globalization and regulatory measures such as the Companies Act of 2013. The integration of CSR into corporate strategies has emerged as a vital component for ensuring long-term sustainability and ethical governance. This paper examines the legal framework governing CSR in India, its impact on environmental sustainability, and the challenges and recommendations for enhancing CSR’s effectiveness within the legal realm. The growing importance of CSR reflects a broader global trend where businesses are increasingly held accountable for their social and environmental footprints. This shift is not merely a regulatory requirement but a strategic imperative that aligns corporate success with societal well-being1.

The objectives of this research paper are to explore the evolution and current state of CSR in India, analyze the legal provisions that shape CSR activities, assess the impact of these activities on environmental sustainability, and identify the challenges and propose recommendations to enhance the effectiveness of CSR initiatives. By providing a comprehensive overview, this paper aims to contribute to the ongoing discourse on corporate responsibility and sustainable development2.

Globally, CSR practices have evolved significantly, with businesses across the world increasingly recognizing their role in addressing societal challenges. In developed economies, CSR is often driven by a combination of regulatory frameworks, stakeholder expectations, and the pursuit of sustainable business models. In contrast, emerging economies like India have witnessed a different trajectory, where traditional philanthropic practices are gradually being replaced by more structured and strategic CSR initiatives.