TRACKING THE TRANSITION OF CORPORATE SOCIAL RESPONSIBILITY IN INDIA: A LEGISLATIVE COMMENT

Abstract

The mandated Corporate ‘Social Responsibility has become the new reality for the Corporate India. The provision which was brought into action from April 2014, works with the aim of invoking the corporate conscience of the companies. Under this mandated regime, companies incur short-term costs that do not provide an immediate financial benefit to them, but instead promote positive social and environmental change. With the evolving circumstances around the world, which simultaneously require the need to raise awareness and concerns about global situations, companies are looked upon to follow some basic standards, policies or initiatives which can make them fit into the developing concept of a conscious global citizen. Even though the primary reason for the Companies to be adopting measures under CSR is with the incentive of earning goodwill, it also does come with a cost. Therefore, through this paper the trajectory of Corporate social responsibility is traced from a tradition to a mandate. The paper also seeks to venture into the long-term benefits and as well as challenges that these regulations bring with them. Along with that, through a closer examination of the provisions of the Legislature itself, the paper shall also identify the loopholes in the provision that has made the applicability of the same, not so smooth.