Implementation of CSR Legislation in India through the Lens of Its Beneficiaries: A Case Study of Malwa Region, Punjab, India

Abstract

This study examines how the Indian CSR law has been implemented and enforced by companies and industries situated in the Malwa region of Punjab state in India. Malwa region, one of the most industrialized clusters of the state, is also simultaneously one of its most polluted areas. Given the severe health effects that these polluting industries cause, implementing the law on CSR in its true spirit is of grave importance. This study uses in-depth interviews of the intended project beneficiaries to determine the state of implementation of the Indian CSR regulatory framework for the selected geographical region. Using the above methodology, this article suggests that businesses should strive at mitigation of the risks of their production and manufacturing activities to the community and the environment. Rather, CSR is viewed by companies as donating part of the companies’ profits to CSR activities, and undertaking social-welfare activities to meet statutory obligations. Hence, this article further determines that there is a need to implement the CSR law in its true spirit by developing an understanding among the companies on the concept and importance of CSR, which goes beyond profit donations. This article concludes with several policy recommendations that can be utilized by the government to strengthen the state of implementation of the law in not only the Malwa region, but also the entire country.