Brief Context
Context By invoking Article 51A (g), the judiciary underscored that the right to conduct business is inseparably linked to the responsibility to restore the planet. Corporate social responsibility (CSR) CSR is a business model that encourages companies to operate in ways that enhance society and the environment while still being accountable to their stakeholders and the public. CSR includes four categories: environmental impacts, ethical responsibility, philanthropic endeavors, and financial res
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Syllabus: GS3/Economy; Environment
Context
- By invoking Article 51A (g), the judiciary underscored that the right to conduct business is inseparably linked to the responsibility to restore the planet.
Corporate social responsibility (CSR)
- CSR is a business model that encourages companies to operate in ways that enhance society and the environment while still being accountable to their stakeholders and the public.
- CSR includes four categories: environmental impacts, ethical responsibility, philanthropic endeavors, and financial responsibilities.
- CSR in India: Section 135 of the Companies Act, 2013 provides that certain companies must mandatorily contribute a certain amount towards CSR activities.
- The Board of Directors of every company for which the CSR provisions apply must ensure that the company spends in every financial year at least 2% of its average net profits made during the immediately preceding three financial years.
- It plays a critical role in balancing profit-making with social accountability.
- It ensures that businesses contribute positively to society while pursuing economic goals.
Article 51A(g)
- Article 51A(g) is a fundamental duty (Environment Protection).
- It was added by the 42nd Constitutional Amendment Act and falls under Part IVA of the Constitution.
- It mandates every citizen to protect and improve the natural environment, including forests, rivers, lakes, and wildlife.
- Courts have linked Article 51A(g) with Article 21, expanding the right to a clean and healthy environment.
Gaps in CSR Funding in India
- Human-centric Bias in CSR: Corporate Social Responsibility spending is heavily skewed towards social sectors education (38%), healthcare (22%), and rural development (10%) while the environment receives only 7–9%.
- Perception of Environmental Issues: Corporations often treat environmental problems as long-term or distant threats, prioritising immediate social needs instead.
- Low Corporate Contribution to Restoration: Under the Bonn Challenge, private companies contributed only ~2% of India’s restored 9.8 million hectares indicating a major restoration gap.
- Preference for “Quick Wins”: Companies favour awareness campaigns, renewable energy projects.
- These are visible, short-term, and easy to report, unlike long-term restoration.
Recommendations
- Shift to Ecosystem Recovery Approach: Judicial push calls for moving from compliance based CSR to a holistic ecosystem restoration strategy.
- Redefining Corporate Accountability: Replace conventional auditing with time-bound restoration targets and ecological impact assessments.
- Outcome-based Indicators: Success should be measured through tangible ecosystem services such as soil carbon sequestration, water retention, biodiversity recovery.
- Focus on Degraded Landscapes: Prioritise remote and degraded forest lands that lack adequate resources and attention.
- Institutional Collaboration: Build partnerships among forest departments, universities, NGOs, joint Forest Management Committees to create scientifically supervised restoration units.
- Innovative Financing Mechanisms: Establish restoration trusts or funds to ensure long-term funding continuity for large-scale projects.
Conclusion
- CSR in India reflects a short-term, visibility-driven approach, while environmental restoration which is critical for long-term sustainability remains underfunded, complex, and neglected.
Source: TH