How India's CSR laws are reshaping human rights through corporate responsibility
In India, businesses now play a key role in upholding human rights through legal requirements tied to corporate social responsibility (CSR). Since 2013, large companies have been legally bound to spend part of their profits on social causes, from education to environmental protection. These efforts directly support fundamental rights, such as access to healthcare, education, and a clean environment—rights that are considered natural and inalienable under law.
The link between CSR and human rights in India grew stronger after the introduction of Section 135 in the Companies Act, 2013. This law mandates that qualifying companies allocate at least 2% of their average net profits to CSR activities. While exact figures on the number of obligated firms in 2023 remain unclear, the requirement has pushed businesses to fund initiatives like hunger eradication, gender equality, and support for armed forces veterans.
Indian courts have reinforced this connection by ruling that companies must contribute to community welfare and sustainable development. CSR projects often align with human rights goals: education programmes advance the right to learning, healthcare initiatives protect the right to life, and environmental schemes safeguard the right to a healthy environment.
Yet challenges persist. Some companies treat CSR as a box-ticking exercise rather than a genuine commitment. Issues like poor transparency, uneven fund distribution, and a lack of human rights checks weaken the impact. To address this, experts suggest stricter due diligence, a dedicated national authority for CSR and human rights, and better public-private collaboration.
Businesses that embed ethical practices into their operations gain more than just a better reputation. They actively defend the rights of workers, communities, and the environment—cornerstones of a fair society.
India's legal push for CSR has created a framework where business growth and social progress go hand in hand. By strengthening transparency, enforcing human rights checks, and fostering partnerships, the country can ensure that corporate spending translates into real benefits for society. The outcome depends on how well companies move beyond compliance to embrace ethical responsibility as a core value.
Read also:
- Executive from significant German automobile corporation advocates for a truthful assessment of transition toward electric vehicles
- United Kingdom Christians Voice Opposition to Assisted Dying Legislation
- Democrats are subtly dismantling the Affordable Care Act. Here's the breakdown
- Financial Aid Initiatives for Ukraine Through ERA Loans
