• NIKITHA P.S

Corporate Social Responsibility (CSR) has emerged as a critical component of corporate governance, representing a commitment to ethical and sustainable business practices. This comprehensive research paper explores the multifaceted role of CSR in India, examining the legal framework, the intricacies of implementation, and the delicate balance required to address the interests of diverse stakeholders. The legal framework for CSR in India is predominantly governed by the Companies Act of 2013. Section 135 of the Act mandates that qualifying companies allocate a percentage of their profits towards CSR activities. This paper scrutinizes the evolution of CSR regulations in India, providing insights into the legislative intent, amendments, and the consequent impact on corporate behavior. Implementation of CSR initiatives involves a strategic alignment of business goals with societal needs. This research assesses the mechanisms through which companies establish CSR policies, emphasizing the role of dedicated committees, policy formulation, and allocation of funds to projects that contribute to inclusive and sustainable development. The analysis extends to the challenges and opportunities encountered in translating CSR policies into meaningful actions. Monitoring and reporting mechanisms are integral components of CSR governance. The paper delves into the structures and processes companies employ to ensure transparency and accountability in their CSR endeavors. By examining annual reports and disclosure practices, the research aims to gauge the effectiveness of existing monitoring systems and their role in shaping corporate behavior. A significant portion of the research focuses on the challenges inherent in balancing the interests of shareholders, stakeholders, and society at large. While shareholders may express concerns about reduced profits due to significant CSR expenditures, stakeholders expect meaningful contributions to social and environmental causes. The paper engages in a nuanced analysis of these conflicting interests, proposing strategies for effective communication and engagement to bridge the gap between corporate goals and societal expectations. The economic impact of CSR initiatives is a crucial aspect explored in this research. The positive effects, such as job creation, community development, and enhanced brand reputation, are juxtaposed against potential drawbacks, including the concentration of economic power and challenges faced by small and medium enterprises. This economic analysis aims to provide a holistic view of the consequences of CSR on India's business landscape. Success stories and best practices offer real-world examples of companies that have excelled in integrating CSR into their business models. Case studies, such as the initiatives by Tata Group and Infosys, illustrate the transformative potential of CSR when aligned with the core values and objectives of the company. The paper concludes by offering recommendations to enhance the effectiveness of CSR in India. Proposals for strategic alignment, stakeholder engagement, and capacity building are presented as essential elements for advancing the impact and sustainability of CSR initiatives. By critically examining the legal, practical, and ethical dimensions of CSR, this research contributes to a deeper understanding of the role corporations play in promoting social responsibility in the Indian context.

CSR

"The Role of Corporate Social Responsibility in India: Legal Framework, Implementation, and Balancing Stakeholder Interests", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.11, Issue 1, page no.f795-f799, January-2024, Available :http://www.jetir.org/papers/JETIR2401599.pdf

"The Role of Corporate Social Responsibility in India: Legal Framework, Implementation, and Balancing Stakeholder Interests", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.11, Issue 1, page no. ppf795-f799, January-2024, Available at : http://www.jetir.org/papers/JETIR2401599.pdf