ABSTRACT
A key instrument for advancing environmental justice is corporate social responsibility, or CSR, which makes sure that companies address environmental injustices and support sustainable development. With a special emphasis on underprivileged and vulnerable populations that are disproportionately impacted by pollution, resource exploitation, and climate change, environmental justice promotes the equitable distribution of environmental benefits and responsibilities across all facets of society. By examining regulatory frameworks, business strategies, and stakeholder engagement, this study investigates how corporate social responsibility (CSR) might help close the gap between environmental justice and company operations. CSR programs that prioritize sustainability, pollution prevention, renewable energy, and community welfare are required under the Companies Act of 2013 in India as well as by a number of international agreements. However, obstacles including corporate resistance to environmental accountability, lax implementation of CSR policies, and greenwashing make it difficult for CSR to effectively achieve environmental justice.
KEYWORDS
Corporate social responsibility, Environmental justice, Business ethics, Corporate Accountability, Renewal energy adoption
INTRODUCTION
A key tool for companies to support sustainable development, especially when it comes to environmental issues, is corporate social responsibility, or CSR. CSR encompasses ethical obligations to society and the environment in addition to profit-making endeavours. CSR has gained recognition in recent years as a means of advancing environmental justice, which guarantees equitable treatment and significant involvement in environmental decision-making for all communities, especially underprivileged and marginalised groups.
There are still obstacles in the way of CSR’s capacity to advance environmental justice. Some businesses deceitfully portray themselves as environmentally conscious, a practice known as “greenwashing.” Furthermore, optional CSR programs might not be enforceable, which would raise concerns about corporate responsibility.
Additionally, via encouraging environmental education, pushing for stricter environmental laws, and participating in open environmental reporting, CSR programs can strengthen communities. Businesses that combine corporate social responsibility (CSR) with environmental justice ideals frequently work with local communities, NGOs, and governments to create solutions that strike a balance between ecological sustainability and economic growth. In addition to increasing company competitiveness, CSR’s emphasis on sustainability and corporate accountability helps create a more equitable and resilient environment for both current and future generations.
RESEARCH METHODOLOGY: DOCTRINAL APPROACH
Doctrinal Research’s Nature
Analysing legal sources, including statutes, rules, court rulings, and scholarly commentary, is the main goal of doctrinal research, sometimes referred to as legal research. The contribution of CSR laws and court decisions to environmental justice will be investigated in this study using doctrinal techniques.
Data Sources
Original Sources (primary sources):
• Environmental justice and corporate social responsibility (CSR) laws at the national and international levels (e.g., sustainability regulations, corporate governance codes, and environmental protection laws).
• Court rulings on corporate environmental duties from both domestic and foreign courts.
• Agreements and treaties (such as the Paris Agreement and the UN Sustainable Development Goals).
Secondary Sources: Books, academic papers, and legal commentary on environmental justice and corporate social responsibility.
• Reports on company sustainability practices from global organisations (such as the World Bank, OECD, and UN).
• Policy documents and reports on corporate sustainability.
LITERATURE REVIEW
With an emphasis on corporate accountability theories, environmental ethics, and human rights viewpoints, the literature survey will examine the theoretical underpinnings of environmental justice and corporate social responsibility.
Theoretical Perspectives of CSR and environmental justice :
A number of hypotheses have been put forth by academics to explain why and how companies participate in CSR:
• Stakeholder Theory: According to Freeman (1984), companies should think about the interests of all parties involved, including the environment and communities, instead of just shareholders.
• Triple Bottom Line: CSR should balance social, economic, and environmental obligations (Profit, People, Planet) (Elkington, 1997).
• Carroll (1991) proposed the CSR Pyramid: identifies the economic, legal, ethical, and charitable levels of corporate responsibility. Businesses have moral and legal obligations to promote environmental justice.
Distributive, procedural, and corrective justice are the cornerstones of environmental justice:
- Distributive justice: The equitable distribution of environmental benefits and burdens is the main goal of distributive justice.
- Procedural justice:Fair participation in environmental decision-making is emphasised by procedural justice.
- Corrective justice: Makes businesses answerable for damage to the environment.
The development of CSR responsibilities for environmental justice has been greatly influenced by courts. Among the notable instances include:
- Shell in Nigeria (Kiobel v. Royal Dutch Petroleum, 2013), which looked at corporate responsibility for human rights and environmental abuses.
- The 1984 Indian Bhopal Gas Disaster brought attention to the necessity of corporate responsibility in the event of an industrial catastrophe.
- The 2019 UK case Vedanta Resources v. Lungowe established corporate liability for environmental damage brought on by subsidiaries in other countries.
CONCEPT OF CORPORATE SOCIAL RESPONSIBILITY (CSR)
The ethical duty of companies to make constructive contributions to society that go beyond their financial interests is known as corporate social responsibility, or CSR. It calls on businesses to operate in ways that benefit all parties involved, including communities, workers, customers, and the environment. It covers economic, social, and environmental duties. From being a volunteer activity, corporate social responsibility (CSR) has developed into a strategic approach that synchronizes business operations with larger societal objectives, especially in advancing sustainability and ethical governance. Businesses take part in CSR programs to improve stakeholder trust, build their brand’s reputation, and reduce risks related to social and environmental challenges.
CSR is a potent instrument for addressing environmental injustices and advancing sustainable development in the framework of environmental justice. In order to prevent marginalized communities from suffering disproportionately from pollution, climate change, or resource depletion, environmental justice promotes the equitable allocation of environmental benefits and responsibilities. By putting in place sustainable corporate practices, cutting carbon emissions, investing in renewable energy, and embracing circular economy models to minimize waste, corporations play a critical part in this movement. Green technologies, ethical supply chains, and responsible sourcing allow companies to lessen their environmental impact while promoting social justice.
Additionally, via encouraging environmental education, pushing for stricter environmental laws, and participating in open environmental reporting, CSR programs can strengthen communities. Businesses that combine corporate social responsibility (CSR) with environmental justice ideals frequently work with local communities, NGOs, and governments to create solutions that strike a balance between ecological sustainability and economic growth. In addition to increasing company competitiveness, CSR’s emphasis on sustainability and corporate accountability helps create a more equitable and resilient environment for both current and future generations.
DEVELOPMENT OF ENVIRONMENTAL JUSTICE
As marginalized and underprivileged populations are disproportionately burdened with environmental issues, the idea of environmental justice has evolved over time. Its origins can be seen in the American civil rights movement of the 1960s and 1970s, when activists drew attention to the disproportionate exposure of minority and low-income groups to environmental hazards such as toxic waste and pollution. With historic incidents like the demonstrations against a toxic waste landfill in Warren County, North Carolina, which was situated in a neighborhood with a large African American population, the movement gained
traction in the 1980s. Environmental risks were not dispersed fairly, as this case and others showed, which raised awareness and prompted calls for structural change.
Academic study and policy lobbying helped to further solidify the concept of environmental justice, which ultimately resulted in political institutions formally acknowledging the problem. Executive Order 12898, signed by US President Bill Clinton in 1994, instructed federal agencies to promote environmental justice in low-income and minority communities. This significant event reaffirmed the notion that disadvantaged populations’ needs should be given top priority in environmental legislation. The environmental justice movement eventually spread outside of the United States, impacting global frameworks like the Sustainable Development Goals (SDGs) of the United Nations and other climate justice campaigns that highlight the connection between environmental protection, sustainability, and human rights.
Environmental justice has expanded in recent years to include more general concerns including corporate responsibility, indigenous rights, and climate justice. The movement today acknowledges that impoverished populations in developing countries are frequently disproportionately impacted by global environmental issues including climate change, deforestation, and industrial pollution. Consequently, environmental justice has emerged as a crucial component of the debate surrounding sustainability, advocating for laws and business practices that guarantee equitable access to natural resources, clean water, and air. By encouraging sustainable growth, moral leadership, and fair resource allocation, the increasing focus on corporate social responsibility (CSR) has further incorporated environmental justice concepts into corporate plans. Environmental justice still influences international environmental laws, policies, and grassroots movement today, promoting an equitable and inclusive strategy for environmental preservation.
CSR’s SIGNIFICANCE IN RESEARCHING ENVIRONMENTAL JUSTICE
Achieving environmental justice is greatly aided by corporate social responsibility (CSR), which makes sure that companies conduct their operations in a way that encourages sustainability, equity, and accountability. Since marginalized and low-income populations are frequently more susceptible to pollution, resource depletion, and climate change, environmental justice aims to redress the disproportionate environmental responsibilities they bear. By incorporating social and environmental factors into their supply chains, operations, and community involvement, corporate social responsibility (CSR) empowers businesses to support this cause. Businesses can lessen the negative effects on the environment that disproportionately affect underprivileged populations by implementing sustainable business practices like cutting carbon emissions, improving waste management, and investing in renewable energy
. Furthermore, CSR-driven programs like green infrastructure projects, ethical sourcing, and eco-friendly product developments help to improve ecological sustainability and create healthier surroundings.
CSR promotes environmental justice through corporate activism, collaborations, and charity in addition to internal business operations. Many businesses work with governments, local communities, and non-governmental organizations (NGOs) to create programs and policies that address environmental injustices. For instance, businesses might support sustainable farming methods in regions impacted by pollution or deforestation, sponsor clean water projects, or encourage afforestation programs. Because companies that adhere to sustainability reporting and ethical governance are more likely to recognize and address environmental and social problems connected to their activities, CSR rules also promote accountability and transparency.
Furthermore, through encouraging environmental education, green job possibilities, and sustainable economic development, CSR plays a critical role in empowering communities. Companies promote social justice and environmental health by assisting small businesses in their communities, making investments in environmentally friendly supply chains, and guaranteeing ethical labor standards. Incorporating corporate social responsibility (CSR) into business plans guarantees that environmental justice is given top priority as a fundamental corporate duty, while also improving a company’s standing and stakeholder trust. CSR is still a crucial instrument for bridging the gap between business profitability and social duty as environmental issues continue to escalate internationally, creating a more sustainable and equitable society for coming generations.
Research Goals
This study’s main objective is to assess how well corporate social responsibility (CSR) advances environmental justice and offer suggestions for improving its effects. This entails examining how businesses incorporate environmental justice concepts into their sustainability plans and determining whether or not their initiatives result in noticeable advancements for the impacted communities. The goal of the study is to pinpoint CSR best practices that support equitable and sustainable environmental results while pointing out areas that require attention.4
Creating a framework for assessing how corporate social responsibility (CSR) affects environmental justice is another important goal, as it will guarantee that business activities are held to greater standards of transparency and accountability. The study looks at case studies and company sustainability reports in an effort to develop precise metrics for assessing how well CSR initiatives address environmental disparities. The study also intends to investigate regulatory frameworks and policy proposals that can enhance CSR’s contribution to environmental justice. This involves evaluating how governments, global organizations, and advocacy groups influence CSR regulations that motivate significant business action. The research aims to provide light on how companies might be more successfully incorporated into larger sustainability programs by bridging the gap between voluntary CSR initiatives and legally binding environmental rules. Finally, by highlighting the significance of corporate interaction with communities, legislators, and non-governmental groups, the study seeks to foster stakeholder collaboration. The study aims to show how companies may match their corporate social responsibility (CSR) efforts with the needs of the people most impacted by environmental injustices by encouraging a multi-stakeholder approach. The ultimate goal of the research is to help create a more just and sustainable business climate where companies take the initiative to solve social and environmental issues.
AN OVERVIEW OF CSR UNDER THE COMPANIES ACT 2013
India became one of the first nations to formally require CSR contributions when the Companies Act of 2013 established a systematic and obligatory framework for CSR. The Companies (Corporate Social Responsibility Policy) Rules, 2014 and Section 135 of the Act give CSR a legal basis and guarantee that businesses support economic, social, and environmental advancement. With a focus on issues like gender equality, rural development, education, healthcare, poverty alleviation, and environmental sustainability, the Act seeks to motivate companies to take an active part in nation-building.
CSR’s Applicability Under the 2013 Companies Act
Companies that satisfy any of the following requirements during a specific fiscal year are subject to CSR obligations:
• A net value of at least 500 crore, a turnover of at least 1,000 crore, or a net profit of at least 5 crore
These businesses need to: 1. Establish a CSR Committee to manage the organisation, execution, and oversight of CSR initiatives.
2. Set aside a minimum of 2% of their average net profits over the previous three fiscal years for corporate social responsibility projects.
3. Verify reporting and compliance on their yearly financial statements and corporate websites.
Both private and public businesses, including international businesses operating in India, are subject to the law.
Important CSR Clauses in the Companies Act of 2013:
a) Establishment of a CSR Committee: Qualified businesses are required to form a CSR committee within the board that has a minimum of three members, including one independent director.
• Creating the company’s CSR policy is one of the committee’s responsibilities.
• Determining the CSR spending priorities.
• Tracking the execution of CSR initiatives.
The committee may have two or more directors in the case of private firms or those without independent directors.
b) Required CSR Expenditure:
Why Businesses must invest in CSR initiatives at least 2% of their average net profit over the previous three years. A corporation must explain its failure to spend the appropriate amount in the Board’s Annual Report and, in some situations, transfer the unused funds to government funds.19
Areas Where CSR Activities Are Permitted:
According to Schedule VII of the Companies Act, CSR initiatives must be in line with the following priority areas:
1. Environmental sustainability, which includes afforestation, waste management, and clean energy.
2. Ending Malnutrition, Hunger, and Poverty.
3. Encouraging education, particularly for children from disadvantaged backgrounds.
4. Healthcare Initiatives (such as disease prevention and COVID-19 relief).
5. Gender equality and women’s empowerment.
6. Programs for Community Welfare and Rural Development.
7. Sports, art, and culture promotion.
8. Assistance for Veterans, War widows, and their families in the armed forces.
CSR Implementation Methods:
Companies can undertake CSR projects through:
1.In-house CSR Teams (directly implementing projects).
2. Non-Profit Organisations (NGOs that are registered and have been in operation for at least three years).
3. Government Initiatives or Funds (such as the PM CARES Fund).
4. Partnerships with Other Businesses (common CSR initiatives).
EXAMPLES OF EFFECTIVE CSR INITIATIVES IN INDIA
In India, corporate social responsibility, or CSR, has been increasingly popular, particularly since the Companies Act of 2013 was passed and certain businesses were required to set aside at least 2% of their net income for CSR initiatives. Numerous Indian businesses have put in place long-lasting and significant corporate social responsibility programs in fields like women’s empowerment, rural development, healthcare, education, and environmental preservation.
1. The Tata Group, which has led the way in CSR for many years, is among the most prominent examples. The corporation has carried out a number of water conservation, waste management, and renewable energy projects under the Tata Sustainability Group. India’s energy usage has significantly decreased as a result of Tata Power’s “Club Enerji” program, which has effectively taught millions of students about energy saving.
2. Infosys, a prominent player in the IT sector, has prioritised environmental preservation and sustainability in its corporate social responsibility initiatives. By making investments in rainwater collection systems, solar energy projects, and green buildings, the corporation has considerably decreased its carbon footprint. By constructing schools, hospitals, and sanitary facilities in rural regions, the Infosys Foundation has also made contributions to healthcare and education.
3.Through their “Nanhi Kali” program, which offers education and scholarships to disadvantaged girls throughout India, Mahindra & Mahindra has prioritised education and skill development. To encourage environmental sustainability, the company also implements water conservation and tree planting initiatives.
4. Mahindra & Mahindra: Green Energy and Sustainable Transportation The Mahindra Group has prioritized renewable energy, afforestation, and electric vehicles. Millions of trees have been planted throughout India as part of their “Mahindra Hariyali” campaign, which helps sequester carbon. Through Mahindra Electric Mobility, the corporation is also spearheading the transition to electric vehicles (EVs).
THE STUDY’s MAIN FINDINGS
By highlighting how companies can support sustainable development through moral environmental practices, legal compliance, and community involvement, this study emphasises the vital role that Corporate Social Responsibility (CSR) plays in advancing environmental justice. Although India has made significant strides in corporate social responsibility (CSR), especially since the Companies Act of 2013, the study concludes that issues with long-term sustainability, corporate transparency, and regulatory enforcement still exist. India may improve its CSR impact by adopting the integrated sustainability frameworks, robust enforcement systems, and well-structured environmental legislation found in developed countries, according to international comparisons. Key findings show that businesses that implement climate resilience, circular economy models, renewable energy, and responsible waste management practices exhibit increased environmental accountability and beneficial societal effects. To achieve corporate-driven environmental justice, however, there are still major barriers in the form of lax regulatory supervision, greenwashing, and inconsistent ESG reporting. The study also emphasises how crucial stakeholder participation, NGO involvement, and public-private partnerships are to increasing the effectiveness of CSR. The results ultimately imply that corporate social responsibility (CSR) ought to transcend charitable endeavours and become an essential component of business strategy, guaranteeing that companies make proactive contributions to resource conservation, climate action, and fair environmental governance.
POLICY SUGGESTIONS FOR BOOSTING CSR ACTIVITIES
- Put in place stronger enforcement measures to guarantee businesses abide by environmental and corporate social responsibility regulations.
- Demand that companies reveal environmental, social, and governance (ESG) information in accordance with international standards.
- Offer financial incentives to businesses that fund environmentally friendly initiatives like waste management and renewable energy.
- For long-term effects, match CSR strategies with national and international environmental goals.
- Encourage cooperation on major social and environmental projects among businesses, governmental organizations, and non-governmental organizations.
- To address sector-specific environmental issues, create tailored CSR frameworks for sectors such as industry, energy, and agriculture.
- To properly address environmental justice issues at the local level, make sure CSR initiatives include local stakeholders.
- Create independent regulatory organizations to monitor and audit the use and effects of CSR funds.
- Use grants and financing initiatives to advance research and development in clean technology and sustainable business practices.
- Use developed countries’ global best practices to enhance
CONCLUSION
Future studies on environmental justice and corporate social responsibility (CSR) can examine how well CSR regulations work in various industries and assess how they affect sustainability over the long run. Research comparing rich and developing countries can shed light on best practices and ways to enhance policies. Furthermore, studies on ESG reporting transparency, corporate greenwashing, and the function of digital technologies in CSR might improve implementation efficiency and accountability. CSR’s contribution to environmental justice and climate resilience can be strengthened by more research into public-private partnerships (PPPs), community participation models, and creative financing techniques.