Definition
CSR laws are legal mandates that require companies to invest a portion of profits in social and environmental projects.

Introduction
India was the first country to legally mandate CSR. Worldwide, laws now ensure that corporate ethics is enforceable and transparent.

Explanation
1️⃣ India Companies Act 2013 (Section 135) – 2% of net profits toward CSR.
2️⃣ Global Frameworks – UN Global Compact, ISO 26000, OECD Guidelines.
3️⃣ Disclosure Norms – CSR reporting in annual statements.
4️⃣ Eligible Activities – Education, healthcare, environment, gender equality.
5️⃣ Impact Assessment – Mandatory for large projects since 2021.

Key Takeaways

Law turns ethics into obligation.

India sets a global precedent in CSR legislation.

Transparency makes CSR credible.

Real-World Case
Reliance Industries Ltd. spends over ₹1,000 crore annually on CSR under the Companies Act.
Reference: https://www.ril.com