Corporate Social Responsibility Under Companies Act, 2013: Legal Obligations s. Voluntary Practices

Abstract

The Companies Act, 2013 marked a paradigm shift in India's corporate governance landscape by mandating Corporate Social Responsibility (CSR) for eligible companies, transforming what was traditionally a voluntary ethical practice into a statutory obligation. This paper examines the legal framework governing CSR under Section 135 of the Act and analyzes the inherent tension between mandatory compliance and voluntary corporate philanthropy. Through doctrinal analysis and examination of regulatory developments, this study explores whether legislative compulsion can achieve genuine social responsibility or merely creates a compliance-driven formalism. The research reveals that while mandatory CSR has significantly increased corporate social spending, it has also generated interpretive ambiguities, implementation challenges, and questions about the authenticity of corporate commitment. The paper argues that the Indian model represents a unique hybrid approach combining legal obligation with discretionary implementation that challenges traditional distinctions between mandatory regulation and voluntary corporate citizenship. This analysis contributes to broader debates about the role of law in promoting ethical business conduct and the effectiveness of regulatory interventions in corporate governance.