—The government of India is proposing amendments in the Companies act, 1956 by bringing Companies Bill, 2011. Once passed, this bill will make the Corporate Social Responsibility (CSR) mandatory for the companies covered under the Section 135 of the draft bill. The paper tries to bring forward the drawbacks of making CSR mandatory by enumerating various flaws in the analogy. The reasoning behind the opposition of the author towards this concept covered under various heads of Duty of the State, Autonomy of the Shareholders, Let the Investor decide, Lack of proper working model & Conflict with the Constitution provisions has been pointed out in detail in the paper.
—Corporate social responsibility (CSR), companies bill 2011, section 135, the companies act 1956.
Shashank Sharma is with the B.B.A. (Hons.), LL.B.(Business Law Hons.) degree at the National Law University, Jodhpur, India (e-mail: email@example.com).
Cite:Shashank Sharma, "Making CSR Mandatory in India-A Flawed Approach," International Journal of Social Science and Humanity vol. 3, no. 1, pp. 33-35, 2013.