Corporate social responsibility and environmental protection

CORPORATE SOCIAL RESPONSIBILITY
AND ENVIRONMENTAL PROTECTION
*Dr.S. Venkateshwar. Rao

ABSTRACT:
India has a history of having a compassionate attitude towards environment. But
with the passage of time the ethical values towards society have degraded as a result of
which judiciary intervened so as to protect the environment. A concept known as corporate
social responsibility emerged in the light of right to pollution free environment and the
constitutional duty to protect and improve the environment. In order to realize the
constitutional objective of protecting environment the concept of Corporate Social
Responsibility was recognized in the legislative enactments. The paper introduces the
concept of Corporate Social Responsibility and the Constitutional al commitment towards
environment protection. Judicial decisions bring into light the conception of Corporate
Environment Liability by streamlining the defaulting institutions. India is a welfare state.
But with the passage of time Indian government has adopted liberalization, privatization
and globalization. Public sector has slowly shifted to private one. Therefore, the new
concept of Corporate Social Responsibility [CSR] means a corporate sector shall perform
such welfare function towards society which is necessary for maintaining the social
interest of the society. In the words of „Carroll‟ and „Buchholtz‟, the corporate social
responsibility encompasses the economic, legal, ethical, and philanthropic expectations
placed on the organizations by the society at a given point of time. According to Browin
H.R., social responsibility is defined as, “the obligation of a businessman to pursue those
policies, to make those decisions or to follow those lines of action which are desirable in
terms of objectives and values of the society. Some scholars have defined CSR as a social
commitment of a businessman or a social obligation or moral or ethical responsibility or a
corporate social philanthropy. In the words of Mahatma Gandhi, business entrepreneurs
are trustees and not the owners of the social wealth and they have to spend a part of it for
social causes. To describe the principle of trusteeship he quoted, enjoy the wealth, and
take the minimum which you need, leave the rest to the welfare of community.” It cannot
be considered as charity.

Key words: ethical values, judiciary, realize, protecting, welfare, philanthropic,
policies, wealth, community.

*Part-Time Lecturer, Department of Sociology, U.P.G.C, Nirmal, Kakatiya
University, Telangana,:,9963518253.

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1. Introduction:
A robust and thriving development sector is central to India‘s quest for equitable,
inclusive and sustainable growth. India‘s development sector has evolved substantially
over the last few decades and is now witnessing unprecedented interest and investments
across the value chain. With the passage of the Companies Act, 2013 the mandate for
corporate social responsibility (CSR) has been formally introduced to the dashboard of the
Boards of Indian companies. The industry has responded positively to the reform measure
undertaken by the government with a wide interest across the public and private sector,
Indian and multinational companies. Building a society which provides equal access to
opportunities negates disparities and, is a collective responsibility.
The emerging concept of corporate social responsibility goes beyond charity and
requires the company to act ethically in the company‘s business affairs. The triple bottom
line approach to corporate social responsibility emphasizes the company‘s commitment to
operating in economically, socially and environmentally sustainable manner. CSR is based
on the idea that successful profitable corporations should take the responsibility for social
issues and manage their business in such a way that maximizes profit and stockholder
wealth while also contributing to the resolution of the social problems. The concept
involves notions of human welfare and emphasizes a concern with the social dimensions of
the business activity that have direct connection with the quality of life in the society. The
word responsibility implies that business organizations were believed to have some kind of
obligation towards the society in which they functioned to deal with the social problem s

and contribute more than just economic goods and services. It is a concept whereby the
companies integrate social and environmental concern in their business operations and in
their interactions with the stakeholders on a voluntary basis. The main function of an
enterprise is to create value through producing goods and services that society demands,
thereby generating profit for its owners and shareholders as well as the welfare of the
society, particularly through the ongoing process of job creation. Social responsibility
implies the acceptance of a moral imperative to recognize the duties and obligations arising
from a company‘s relationship with customers, suppliers, employers, shareholders and
society at large beyond consideration of profit. It refers to business decision making linked
to the ethical values, compliance with the legal requirements and respect for people and
communities and environment. Constitutional Commitment vis-à-vis CSR Philanthropy
and CSR is not a novel concept for Indian companies, however a few organizations are
likely to struggle. The role of civil society in fuelling this change is bound to be extremely
important. With the new corporate resources in their tool bag much will depend on their
ability to innovate and adapt. India has inherited a culture of tolerance, no, violence, equity
and compassion for animate objects. In olden times, they were the part of daily life and
synthesized with religion. Therefore, the fundamental ethics of behavior with each other
was to live in harmony with each other because it was well realized that each one of them
is dependent on one another and destruction and damage to the other is the
Distraction of self and is complementary to each other.

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The idea of environment had never been in the minds of the founding fathers of the
Indian constitution. Consequently, the expression environment was initially not found in
the constitution. The abovementioned philosophy of peaceful co existence with nature got
mentioned, in one way or the other, in the Indian constitution.
2. Concept of corporate social responsibility:
The expansion of right to life under Article 21 of the Indian constitution inspired

the judiciary to open the new vistas in this regard. However, it took a long time for the
apex court to pronounce explicitly that the right to life under article 21 of the Indian
constitution contains a right to healthy environment, although the high Courts had gone
ahead much earlier. Imposition of damages on the defaulting industry for causing
disturbance to the water is justified on the touchstone of right to life, and duty to protect
and improve environment. The right to healthy environment is the product of judicial
interpretations adding new dimensions to the right to life in Articles 21 of the constitution
of India. On the other hand, 42nd amendment to the constitution has imposed the duty on
the state and the citizens to protect and improve environment, by adding article 48 A to the
directive principle of state policy and 51 A (g) as a fundamental duty. These insertions
have acted as the foundations for building up environmental jurisprudence in the country.
Corporate sustainability essentially refers to the role that companies can play in meeting
the agenda of sustainable development and entails a balanced approach to economic
progress, social progress and environmental stewardship. The Companies Act, 2013 has
introduced the idea of CSR to the forefront and through its disclose-or-explain mandate, is
promoting greater transparency and disclosure. Schedule VII of the Act, which lists out the
CSR activities, suggests communities to be the focal point. On the other hand, by
discussing a company‘s relationship to its stakeholders and integrating CSR into its core
operations, the draft rules suggest that CSR needs to go beyond communities and beyond
the concept of philanthropy. It will be interesting to observe the ways in which this will
translate into action at the ground level, and how the understanding of CSR is set to
undergo a change. The judicial role of eighties played an important role in reaching new
horizons of jurisprudence in India, more so in the area of environmental protection. The
verdict in Municipal Council, Ratlam v Vardhichand is a land mark. The residents of
Municipality were suffering for a long time from the pungent smell emanating from open
drains. The apex court identified the responsibilities of the local bodies towards the
protection of the environment, and developed the law of public nuisance in the Cr. P.C. as
a potent instrument for the enforcement of their duties. Justice Krishna Iyer had made a
Thorough examination of two issues:
a. The municipal Legislation which casts the duty on the municipalities to clean the

roads and clean drains.
b. The provision in the Indian Penal Code, which prescribes the punishment to a
person contravening with
The direction of the magistrate.

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In Vijay Singh Punia v State of Rajasthan imposing 15 percent of the turnover of
the dyeing and printing industries as damages for causing water pollution Rajasthan High
court observed:
The emission of untreated waste water by the industrial units is depriving the
citizens the access to unpolluted ground water which is essential for the existence. Not
only the ground water has been affected by the way industrial units have been operating,
but their working has also affected the quality of vegetables and crops which are grown in
that area…. For enforcing he rights under Article 21 of the Constitution and compelling the
persons to discharge their fundamental duties under Article 51 A (g) of the Constitution,
the courts exercising extraordinary jurisdiction can impose damages on the polluter for the
restoration of the ecological balance and also for the victims who have suffered the
intrusion upon the environment and ecology of the former.
3. Environment protection measures:
Irrespective of whether a company is polluting or none polluting, protection of
environment should be the concern of every socially responsible organization. Each
company must take steps to make sustainable use of resources, establish a healthy and safe
working environment, maintain ecological balance, take proactive steps to minimize waste
generation and preserve environment.
4. Corporate business ethics:
Ethics is a set of principles or standard of human conduct that govern the behavior
of individuals or organizations. Using these ethical standards, a person or group of persons
or organizations regulate their behavior to distinguish what is right and what is wrong as

perceived by others. It is not a natural science but a creation of human mind. All human
societies have ethical systems that define what is meant by right and wrong, fairness,
justice, truthfulness and similar ideas dealing with morality and rightness. Individuals who
live in those societies learn more from childhood what is considered as ethical and
unethical. Business is increasingly challenged to consider ethics when it makes decisions.
They need to find out the balance between economics and ethics. Society wants the
business to produce the needed goods and services but it also expects the business to
conduct its economic operations in an ethical way.
Model Environmental Policy
The company‘s commitment towards is absolute. The company believes in
sustainable development by ensuring that the activities are in harmony with environment.
The company in the process of various steps of manufacturing is committed to achieving
excellence in environmental performance and towards this
Objective shall:
Adopt appropriate operational practices and suitable technologies to monitor,
control and minimize the
Impact of its activities on environment.

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Continually improve its performance by setting the objectives and targets to prevent
or reduce pollution
And waste and minimize the use of resources.
Comply with all relevant legislative and regulatory environmental requirements.
Develop and maintain a highly motivated workforce trained for effective
management of environment and
Emergency situation.
Provide relevant information on environmental policy to the concerned authorities
and interested parties and ensure that the policy is understood, implemented and explained

by the employees at all levels within
The organization.
Evaluate and modify environmental management practices keeping in view
regulatory requirements, community concerns and technological advancements.
Major areas defining Corporate Social Responsibility
Corporate social responsibility has much broader implication for a nation as a
whole. The growing popularity of corporate social responsibility is premised on the belief
that the modern corporations have the financial resources, human capital, and a global
influence to advance the progressive causes. Some of the areas which
Define CSR are as under.
a. Community development: this includes socially oriented activities which are
primarily of the benefit to the general public like corporate philanthropy, housing
construction, financial health services activities among
Employee‘s food programmers and community planning and development.
b. Human resources: this area includes social performance directed towards the well
being of the employees such as improvement of employment practices, training
programmed working conditions and provision for
Job enrichment schemes.
c. Product of service contribution: this includes consumerism, product quality and
product safety.
d. Physical resources and environmental contribution: These activities are directed
towards alleviating or preventing environmental pollution and conservation of scarce
natural resources and the disposal of solid
Waste is included in this area.
Corporate social responsibility reduces the dependency on the Government for the
social change. It is also about training young minds and also helping the future generations
organize themselves for the greater good.

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5. Corporate environmental liability:
The notions that the individuals, by extension also the corporations, bear the solemn
responsibility towards the environment is not new. The Stockholm Conference referred in
Principle 1 to man‘s ‗solemn responsibility‘ to protect and improve environment.
Subsequent formulations have preferred to emphasize the individual character of this
obligation. Thus the world charter for the nature talks of the duty of ‗each person‘ to act in
accordance with the terms. The draft principles on Human Rights and environment states
that that ‗All persons have the duty to protect and preserve the environment.‘ None of these
instruments creates legally binding obligations for individuals as such. But they do provide
a justification for using criminal
Responsibility as a means of enforcing international environmental law.
It is only when the accident of magnitude and impact of Bhopal gas leak disaster
took place, those environmentalists, social workers; general public and government
institutions started thinking about the new ways and means of preventing similar tragedies
in the future. This process leads to the legislative and administrative activism. The
perception of the global concern about the environment is of recent origin. As Caldwell
observed, ―at the beginning of the twentieth century, neither the environment as an
integrative ecological concept nor the biosphere as a planetary life support system was an
object of public international concern.‖
The Bhopal gas leak accident, one of the worst industrial disasters in the human
history, occurred approximately two years before the Supreme Court evolved the rule of
absolute liability. It is not possible for the court to make quick decisions relating to
compensation to the victims of the accidents like those of Bhopal gas leak. The interests
affected are various; the intensity of damage and suffering varies from one victim to
another. Assessment of the compensation for the loss, mental agony, suffering and death
has been
An arduous task.
In M. C. Mehta v Union of India, the Supreme Court formulated the doctrine of
absolute liability for the harm caused by the hazardous and inherently dangerous industry

by interpreting the scope of the power under article 32 to issue directions and orders, ‗
whichever may be appropriate‘ in ‗appropriate proceedings‘. According to the court this
power could be utilized for forging new remedies, and fashioning new strategies.
In Deepak Nitrate Limited v State of Gujarat the Supreme Court held that the liability
should not be fixed without any nexus to the extent of fault. The compensation should have
a relationship with the harm suffered rather than the capacity of the industry.
Indian Council for Enviro- legal Action v Union of India tells the tragic story of
village Rajasthan. Its loving environment became highly polluted by the sludge that was
left out even after the rouge industries licensed to produce ‗H‘ acid. The Supreme Court
directed the central Government to determine and recover the cost of remedial measures
from the respondents. Section 3 of the Environment Protection Act expressly empowers

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the central government (or to delegate, as the case may be) to ‗take all such measures as it
deems necessary or expedient for the purpose of protecting and improving the quality of
environment.
Scientific uncertainty may sometimes be a mirage. Polluter‘s often try to hide
themselves behind the need of scientific certainty. Precautionary principle does not book
this hide and seek the policy of the polluters and the potential polluters. The ‗polluter pays‘
principle and the precautionary principle were accepted as a part of legal system in the
Sludge Case and the Vellore Citizen‘s Forums Case
In T. Dhamodar Rao v Special Officer, Municipal Corporation of Hyderabad, the
Andhra Pradesh High court referred also to Article 51 A (g) and 48 A and prevented the
conversion of open space to a residential complex. The court noted that the protection of
environment is the duty of the citizens as well as the obligation of the state. In Mohd Hazi
Rafeeq v State of Uttaranchal, the Uttaranchal High Court referred to Article 48 A and
51 A (g) in order to stress the duty of the state to preserve and protect forest even at the
Cost of business interest of the petitioner.

In Rural Litigation Entitlement Kendra v State of UP Supreme Court of India
accepted the letter written to the court as a writ petition. This case was pronounced by the
court as the ―first case of its kind in the country involving the issues relating to
environment and ecological balance...‖ the letter was written by RLEK, Dehradun a
voluntary organization. The epistolary jurisdiction has been invoked by the courts in other
cases also as the matters involved were of vital importance. In Municipal Council, Ratlam
v Vardichand Shri Vardichand filed a case for removing unhygienic conditions amounting
to public nuisance, as Article 47 makes it paramount principle of governance that steps are
taken for the improvement of the public health as amongst its primary responsibility. The
court observed: ―The officer in charge and even the elected representatives will have to
face the penalty of law if what the constitution and follow up legislation direct
Them to do are defied or denied wrongfully‖
6. Conclusion:
The need to understand and act upon the concept of corporate social responsibility
has gained momentum in the recent past not just in the legal precept but also in the judicial
activism. The argument for the individual rights and by extension those of corporations and
position of NGO‘s stands apart as perhaps the strongest of the environmental claims. The
pragmatic point is that the addressing the position of individual and other legally
significant entities directly, international law facilitates wider participation in cusses of
national governance, and more effective approach to the enforcement and implementation
of law, primarily through the use of national legal systems. Besides the constitutional and
legislative duty it becomes an ethical duty not only of individuals but of the corporate
houses to protect and improve the quality environment. Right to pollution free environment
could be achieved by realizing common but differentiated responsibility at every strata of
the society. It has been made an obligatory duty of the occupier to disclose the information

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include health hazards and the measures to overcome such hazards in manufacturing,

transportation, storage, and other processes to the workers, chief inspectors, local authority
and the general public in the vicinity. Such information shall include characteristics of
wastes and the manner of their disposal. It is also the duty of the occupier to draw up an
―on site emergency plan‖ and detailed ―disaster controlled measures‖ and to make
Them known to the works and the nearby dwellers.
7. References:
1. Vikram jaswal & Shweta Thakur, ―Corporate Justice ‖,Civil and Military Law
Journal, Vol 1 No.3 July 2004, p. 19
2. S. C Shastri ―Corporate Social Responsibility vis-a -vis Protection of
Environment In India: A Legal perspective,‖ Journal of Faculty of Law Mody University
of Science and Technology 2014, p 1
3. Section 135 (1). Every company having net worth of rupees five hundred crore or
more, or turnover of rupees one thousand crore or more or a net profit of rupees five crore
or more during any financial year shall constitute a Corporate Social Responsibility
Committee of the Board consisting of three or more directors, out of which at least one
director shall be an independent director.
4. http:// www.indiacsr.in/en/?P=113 visited on 1st` July 2015
5. Kumar Ayush, ―Mandatory Corporate Social Responsibility: An Expansive
Vision? ‖, Company Law Journal, 1 (3) March 2013,pp 113-114
6. Rogene. A. Buchlolz, Business Environment and Public Policy, 1992 p. 21
7. Jatana Renu and Crowther David, ―Corporate Social Responsibility- Theory and
Practice with Case Studies‖, 2007 p. 223
8. Id at 294
9. Corporate Social Responsibility in India has traditionally been seen as a
philanthropic activity, and in keeping with the Indian tradition, it was an activity that was
performed but not deliberated. As a result, there is limited documentation on specific
activities related to this concept.
10. S.C. Shastri, Environmental Law, 2012, p.8
11. Article 48 A: the State shall endeavour to protect and improve the environment
and safeguard forests and wild life of the country. and Article 51 A –(g): it shall be the duty

of every citizen of India, (g) … to protect and improve the natural environment including
forests, lakes, rivers and wildlife and to have compassion for the living creatures.
12. Protection of life an d personal liberty:- no person shall be deprived of his life
and personal liberty except according to procedure established by law.

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