Corporate Social Responsibility in India

Corporate Social Responsibility (CSR) has emerged as an important component of corporate governance in India, reflecting the growing recognition that business enterprises have responsibilities extending beyond profit maximisation. This article examines the evolution of CSR in India, from voluntary philanthropic practices to a statutory obligation under Section 135 of the Companies Act, 2013, read with the Companies (Corporate Social Responsibility Policy) Rules, 2014. It analyses the principal features of the Indian CSR framework, including applicability thresholds, the constitution and functions of the CSR Committee, mandatory expenditure requirements, the treatment of unspent CSR funds, disclosure obligations, and impact assessment. The article further explores judicial and regulatory interpretations concerning corporate accountability and the tax treatment of CSR expenditure, with reference to relevant decisions of the National Company Law Tribunal, the Delhi High Court, and the Income Tax Appellate Tribunal. Adopting a doctrinal approach based on statutory provisions, regulatory instruments, and judicial precedents, the study evaluates the challenges affecting the effective implementation of mandatory CSR in India. These include ambiguities in qualifying activities, inadequate assessment of social outcomes, geographical disparities in fund allocation, and concerns regarding transparency and the selection of implementing agencies. The article argues that, although the statutory framework has strengthened corporate accountability and institutionalised social expenditure, compliance alone cannot ensure meaningful social development. It concludes that stronger monitoring mechanisms, reliable impact assessment, and greater transparency are essential to ensure that CSR expenditure translates into sustainable and measurable social benefits. Keywords: Corporate Social Responsibility; Companies Act, 2013; Section 135; Corporate Governance; CSR Compliance; Judicial Interpretation; Impact Assessment; Sustainable Development.