INFLUENCE OF CSR COMPLIANCE, ESG REPORTING STANDARDS REGULATORY ENFORCEMENT, AND ENFORCEMENT GAPS ON CORPORATE GOVERNANCE IN INDIA

India has the distinction of having the first legislation in the entire world of mandatory
corporate social responsibility expenditure. The Companies Act, 2013 brought in Section
135 when it happened that a statutory duty of a certain percentage of average net profit was
introduced on qualifying companies to engage in social activities amounting to at least two
per cent. It was not a form of symbolism since this was a legally binding thing which was
reinforced by the scrutiny of the board committees, a small amount of disclosing every year
and later have penalties in the event of default. This landmark ruling was part of a greater
philosophy that big companies owe not only their shareholders but also to the communities
and environment that they serve on