Enhancing Corporate Governance through Corporate Social Responsibility (CSR): An Analysis of Indian Practices and Impact
Prepared By: Zoya Abid and Dr. Mohammad Rafiq Dar
Abstract
Corporate Governance and Corporate Social Responsibility (CSR) have become essential pillars of modern business, especially in rapidly developing economies like India. This study delves into the significant role CSR plays in strengthening corporate governance across Indian companies, emphasizing the mutually beneficial relationship between the two. It explores how CSR efforts enhance organizational transparency, promote accountability, and support ethical decision-making—key areas that are particularly vital under India's evolving regulatory landscape, including frameworks such as the Companies Act of 2013. The research takes a closer look at how CSR is being woven into corporate governance systems and highlights the challenges Indian businesses face in this integration. It also examines how CSR initiatives have helped tackle crucial concerns like building stakeholder trust, ensuring board-level accountability, and managing risks more effectively. By analysing real-world examples from leading Indian corporations such as Tata Group, Infosys, and Mahindra Group, the paper illustrates how CSR has not only influenced but also reshaped business practices to reflect global governance standards. In conclusion, the study offers policy recommendations aimed at better aligning CSR efforts with corporate governance objectives. It also points to future research opportunities focused on exploring CSR’s influence on ethical leadership and governance practices in the Indian context.
Keywords: Corporate Governance, Corporate Social Responsibility (CSR), India, Companies Act 2013, Transparency, Accountability, Ethical Decision-Making, Stakeholder Trust, Board Accountability, Tata Group, Infosys, Mahindra Group, Governance Reforms, Legal Framework, Sustainability, Corporate Reputation, Social Responsibility.
