Corporate Social Responsibility in India: Pathways to National Development and Global Leadership

Abstract

Corporate Social Responsibility (CSR) in India has undergone a fundamental transformation since the enactment of Section 135 of the Companies Act 2013. What began as a compliance requirement has evolved into a strategic and policy-aligned instrument that contributes directly to the national development priorities and the Sustainable Development Goals (SDGs). But there is still a policy gap: CSR still works within a framework that is focused on compliance and spending, which limits long-term development impact and leads to uneven spending across regions and sectors. This paper examines India’s CSR framework through two theoretical lenses: the Chatterjee Model, which positions CSR as an institutionalised development mechanism, and the Strategic Management Perspective on CSR, which explains how CSR generates stakeholder value, competitive advantage, and long-term firm performance. Using secondary data, policy analysis, and case studies across education, livelihoods, environmental management, supply chain, social entrepreneurship, and ESG reporting, this paper demonstrates how CSR has matured into a multi-dimensional and transdisciplinary tool shaping governance, business strategies, and community development. Based on this evidence, this paper suggests a paradigm change from expenditure-based compliance to an integrated impact-accountability framework that is in line with the national development goals and SDG indicators. Making this change would improve corporate competitiveness, enhance governance frameworks, and provide communities with quantifiable, long-term benefits.