Corporate Social Responsibility: Emerging Trends and Legal Requirements in India

Manisha Sood

Manisha Sood Assistant Professor, Punjab College of Technical Education, Baddowal

Abstract

Corporate social responsibility (CSR) has become a pivotal component of business operations worldwide, with companies increasingly recognizing their societal and environmental obligations. In India, CSR is legally mandated under the Companies Act, 2013, which requires certain companies to allocate a minimum of 2% of their average net profits to eligible CSR activities, such as education, healthcare, poverty alleviation, and environmental sustainability. The Act also prescribes the formation of a CSR committee and mandates transparency through detailed reporting on company CSR activities.

This paper explores the evolving landscape of CSR in India, focusing on key legal frameworks, emerging trends, and the strategic role of CSR in modern business. CSR initiatives in India have expanded beyond compliance, integrating with core business strategies to address global challenges like climate change, sustainable development, and social equity. The paper also highlights the growing importance of stakeholder engagement, technological advancements, and collaborative efforts in driving CSR programs that align with business objectives and promote long-term sustainability.

As CSR continues to evolve in India and globally, companies are poised to not only meet legal obligations but also leverage CSR as a tool for innovation, competitive advantage, and societal impact. This shift underscores a broader movement towards responsible business practices that prioritize societal welfare alongside profitability, ensuring a more sustainable future for all.

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