Corporate social responsibility and environment sustainability in indian companies with legal implications and its effect on society

Abstract

India has the world s most prosperous, most extensive, and flourishing history in the association of social and domestic businesses. In the past, Corporate Social Responsibility (CSR) was in the sense of social responsibility or charity that has evolved with time. In much of the old literature, Kautilya in India and pre-Christian thinkers in the West dictated ethical concepts that support those with bad weaknesses and ethics when doing business. newlineIn the pre-independence era, the companies pioneered charitable organizations, education and health institutions, and trusts to develop the community and fight for independence. In the late 1900s, socially conscious corporate activities were in different areas, including gifts, charitable programs, staff health and religious behavior. newlineThe word CSR itself was used in the early 1970s and was completely understood and practiced at the end of the 1990s. By 1977, nearly 500 companies even referred to CSR in annual reports, and by the end of 1990, almost 90% of the Fortune 500 companies adopted CSR as an integral ingredient of their organization. newlineThe Companies Act, 2013, which makes CSR a mandatory affair, has been positively taken up by Indian companies, and Indian and foreign companies in public and private sectors have begun to contribute according to the Act. In urging businesses to follow CSR procedures and ensure better governance norms, India s Government has taken the lead. In its law, India is perhaps the first nation to have CSR. Countries such as Indonesia and France still have, albeit in a very loose style, CSR regulations. India is the first nation to require CSR by a legislative clause by integrating corporate social responsibility into the 2013 Act. Though corporate social responsibility is not necessary for businesses, in this case, the guidelines are in accordance with the concept of complying or explaining with fines applying only if an explanation is not given newline2 newline(Section 135 of the Companies Act of India, 2013). With effect from 1st April 2014, the Indian