A CRITICAL ANALYSIS OF MANDATORY CSR AND ITS ROLE IN MODERN CORPORATE GOVERNANCE

Corporate Social Responsibility is a concept that recognizes the moral and social obligation of corporations to contribute positively to the society in which they operate. The corporations are integral parts of the social ecosystem and therefore have a responsibility to give back to society. From a human perspective, CSR reflects the idea that business success should not be isolated from social progress and that organizations must actively support the welfare of the community, especially the needy and marginalized sections of society. CSR activities enable corporations to address pressing social issues such as poverty, inequality, lack of education, poor healthcare, and environmental degradation. By investing in these areas, companies help improve the quality of life of disadvantaged groups and contribute to building a more inclusive and equitable society. This “give back to society” approach is rooted in the understanding that businesses derive resources, labor, and opportunities from the same society, and therefore have a responsibility to return value to it. In essence, CSR transforms business entities from purely profit-driven organizations into socially responsible institutions that balance economic growth with human welfare and sustainable development. The present Article aims to critically study mandatory CSR and its role in modern corporate governance in India where CSR has been made compulsory under Section 135 of the Companies Act, 2013. It acknowledges how CSR has changed from a voluntary social service to a legal requirement and whether this change has really helped society or has only become a compliance rule for companies.