Advanced International Journal for Research

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Role of Corporate Governance and Legal Framework in Enhancing CSR Effectiveness in Indian Companies

Author(s) Dr. Suja Nayar, Dr. Margie Acharya, Dr. Urvashi Sharma
Country India
Abstract Corporate Social Responsibility (CSR) has emerged as a critical component of corporate strategy, reflecting the growing expectation that businesses contribute meaningfully to societal development. In India, the enactment of Section 135 of the Companies Act, 2013, has made CSR a legal obligation for certain companies, ensuring systematic planning, allocation of resources, and transparent reporting of social initiatives. However, legal compliance alone does not guarantee effectiveness; corporate governance plays a pivotal role in guiding, monitoring, and evaluating CSR activities to ensure ethical implementation and measurable social impact. This article examines the interplay between corporate governance and the legal framework in enhancing CSR effectiveness in Indian companies. It analyzes the role of board oversight, independent directors, transparency mechanisms, and stakeholder engagement in promoting strategic and accountable CSR practices. The study also explores the opportunities and challenges faced by Indian companies in implementing CSR initiatives, highlighting the implications for organizational reputation, stakeholder trust, and sustainable development. The findings underscore that the integration of governance principles with legal mandates can transform CSR from a statutory obligation into a powerful tool for societal benefit and corporate value creation.
Keywords Corporate Social Responsibility (CSR), Corporate Governance, Companies Act 2013, Legal Framework, India, Stakeholder Engagement, Ethical Practices, Sustainable Development, Board Oversight, CSR Effectiveness
Field Sociology > Administration / Law / Management
Published In Volume 6, Issue 4, July-August 2025
Published On 2025-08-27
DOI https://doi.org/10.63363/aijfr.2025.v06i04.1157
Short DOI https://doi.org/g9zx9r
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