Navigating The Maze: Assessing CSR Compliance And Regional Disparities In India's Business Landscape

Abstract

A greater commitment to societal and ecological duties is reflected in the increasing recognition of Corporate Social Responsibility (CSR) as a crucial element of contemporary business practices. Laws and shifting stakeholder dynamics have led to a noticeable increase in corporate social responsibility (CSR) in India.The absence of clear guidelines for the allocation of funding for regional development under the Companies Act of 2013. Because of this, localities that have already started down their development paths tend to receive a larger share of CSR allocations, which marginalises less developed areas and widens already existing socioeconomic gaps. CSR initiatives are being adopted by Indian businesses more frequently, indicating a move towards sustainable and socially conscious business practices. This article explores how Indian companies comply with the CSR requirements outlined in the Companies Act of 2013 and its later amendments. Through in-depth analysis, the study assesses how consistently these companies adhere to the established CSR criteria and investigates the potential for regional disparities in CSR initiatives across the country. By establishing CSR activities in the context of Indian legislative parameters, this study offers a nuanced perspective on the uniformity and potency of CSR activity. Additionally, this article emphasises a fundamental concern: while CSR funding primarily seek the benefit of communities and the environment, they unwittingly reinforce regional inequities. This problem arises from the Companies Act of 2013's absence of clear guidelines for the allocation of cash for local development. Consequently, localities on well-defined development paths frequently receive a larger share of CSR funding, marginalising less developed areas and exacerbating already-existing socioeconomic inequalities.