Corporate social responsibility compliance in India: a comparative analysis of legal mandates and accounting disclosure norms under the Companies Act, 2013

Abstract

This paper critically examines the evolution and practice of Corporate Social Responsibility (CSR) in India under the Companies Act, 2013, with a focus on the interplay between statutory mandates and accounting disclosure norms. As the world’s first nation to legislate mandatory CSR, India presents a unique model that seeks to integrate corporate governance with socio-economic development. The study analyzes Section 135 and Schedule VII of the Act, along with subsequent amendments in 2021 and 2022, highlighting their role in institutionalizing CSR through financial obligations, governance structures, and disclosure requirements. Using data from industry reports, government publications, and NGO surveys, the paper evaluates the extent to which legal compliance translates into genuine social impact. Findings indicate that while compliance levels are remarkably high and CSR spending has risen significantly, the framework suffers from sectoral and geographical concentration of funds, as well as an “implementation deficit” due to challenges faced by NGOs. The analysis underscores the need for a paradigm shift from compliance-driven philanthropy toward strategic, impact-oriented CSR that aligns with national priorities and the Sustainable Development Goals. Policy recommendations emphasize multi-stakeholder collaboration, capacity building in the non-profit sector, and strengthening impact assessment mechanisms. Ultimately, the paper argues that the future of CSR in India lies not merely in legal adherence but in fostering inclusive and sustainable community development.