Corporate Social Responsibility (CSR) of business entails simultaneous fulfillment of the firm’s economic, legal, ethical and philanthropic responsibilities. In its most authentic form, CSR aims to serve society, not as a means to propel a business forward financially, but rather to give back to humanity and promote good in the world. In the growing acceptance of the need for corporations to simultaneously protect the interests of their shareholders, employees, customers and the community in which they operate, it has become mandatory for the corporate to urgently meet other divergent obligations also as an extended part of their social responsibilities such as the right to equality and non-discrimination, occupational health and safety, terms and conditions of employment, minimum wage, collective bargaining, prohibition of child labor and forced labor. They have to keep a rigid vigil on sustainability, resource development on indigenous land and environmental management as well. The Indian Companies Act, 2013 has made far-reaching changes in the field of CSR. This paper analyzes the obligation imposed by the new Act and discusses the significance of CSR and its need in the present-day scenario.

Building a society which provides equal access to opportunities negates disparities and is a collective responsibility. Every single major policy initiative in this country has been driven with a perspective that had an overwhelming concern for the disadvantaged and marginalized, a multidimensional view of poverty and human deprivation with the focus on our fundamental rights. Disparity, inequality and the growing divide in our societies define our existence today. The inclusion of the Corporate Social Responsibility (CSR) mandate under the Companies Act, 2013 is an attempt to supplement the government’s efforts of equitably delivering the benefits of growth and to engage the corporate world with the country’s development agenda. The Indian Companies Act, 2013 presents a unique opportunity to stand up to the challenge.

It is an undisputed fact that multinational corporations wield more power and wealth than many of the nations across the world.1 These corporations do a great deal of service to the society by paying huge taxes, providing employment, contributing to charitable causes and so on. However, at the same time, they are also prone to corruption, accused of providing poor and inadequate workplace conditions, causing human rights abuses, consumer disputes and violating environmental values. It is not quite clear whether it is the latter part that the CSR tries to control but it is surely a mechanism which balances the latter with that of the former. CSR is based on the premise that most of the companies derive resources from the society and they are expected to give it back.

Law Review Journal, Corporate Social Responsibility, Four-Phase Development, CSR in India, Public Sector Undertakings (PSUs), The Indian Scenario.