Corporate Social Responsibility in India: Issues and Challenges

A Arul Nivetha

doi:10.34293/sijash.v13iS4-Feb.10138

A Arul Nivetha M.Com CA, Department of Commerce with CA, Idhaya College for Women, Sarugani, Sivagangai District, (Affiliated to Alagappa University, Karaikudi)

DOI: https://doi.org/10.34293/sijash.v13iS4-Feb.10138

Keywords: Corporate Social Responsibility (CSR), Companies Act 2013, Mandatory CSR, CSR Issues, Challenges, India, Social Development, Corporate Governance

Abstract

This paper aims to analyze the current landscape of Corporate Social Responsibility (CSR) in India, specifically focusing on the issues and challenges faced by companies in the implementation and evaluation of CSR initiatives following the mandatory provisions of Section 135 of the Companies Act, 2013. The study critically evaluates the shift from philanthropic to compliance-driven CSR and its subsequent impact on social development outcomes. The study identifies several key challenges hindering effective CSR implementation in India, including: lack of community participation and local capacity building, geographic disparity in fund allocation (concentration in developed states), issues of transparency and accountability, difficulty in measuring and assessing the long-term impact of projects, and a prevailing attitude of viewing CSR as mere compliance rather than a strategic business function.