What did the Supreme Court rule about corporate social responsibility?

The Supreme Court ruled that corporate social responsibility inherently includes environmental responsibility, making it a fundamental duty for companies.

How does the Supreme Court's ruling affect companies regarding the environment?

Companies now have a constitutional obligation to protect the environment and wildlife, and CSR funds must be directed towards conservation efforts.

What is the significance of the Great Indian Bustard case for corporations?

The case highlighted that corporations must protect endangered species' habitats and adhere to the 'polluter pays' principle, using CSR for conservation.

Home / Environment / Supreme Court: Environment IS Corporate Duty

Supreme Court: Environment IS Corporate Duty

19 Dec

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Summary

Corporate social responsibility now legally includes environmental protection.
Companies have a constitutional duty to protect natural environments and wildlife.
CSR funds must be used for conservation, not just charity.
Polluter pays principle applies to companies damaging endangered species habitats.

Supreme Court: Environment IS Corporate Duty

The Supreme Court on December 19, 2025, declared that corporate social responsibility (CSR) inherently encompasses environmental responsibility. The court's ruling establishes that corporations, as legal entities and societal organs, have a fundamental duty to protect the environment, evolving from a sole focus on shareholders to safeguarding the broader ecosystem.

This landmark judgment applies Article 51A(g) of the Constitution to companies, imposing a duty to protect nature and its creatures. The Court clarified that allocating CSR funds for environmental protection is a constitutional obligation, not an act of voluntary charity. The "polluter pays" principle was reinforced, mandating that corporations whose activities threaten endangered species' habitats must bear the costs of conservation.