A study on corporate social responsibility (CSR) under Indian Law: Effectiveness and challenges

This study examines Corporate Social Responsibility (CSR) under the Companies Act, 2013, focusing on its effectiveness and challenges. India stands out for mandating CSR through Section 135, requiring eligible companies to spend 2% of their average net profits on social initiatives. While this framework has increased corporate contributions to sectors like education, healthcare, and environmental sustainability, questions remain regarding its true impact. The research evaluates whether CSR is driven by genuine commitment or mere compliance, highlighting concerns such as CSR-washing, regional disparities, and lack of transparency. By analysing legal provisions and practical outcomes, the study explores CSR’s role in enhancing corporate reputation, stakeholder trust, and sustainable development. It concludes by suggesting improvements to ensure CSR becomes a strategic, impactful tool for both business growth and societal welfare.