Supreme Court Judgment on Corporate Social Responsibility (CSR) and Environmental Responsibility
On December 19, 2025, the Supreme Court interpreted CSR to inherently include environmental responsibility, emphasizing that a corporation, as a legal person, has a fundamental duty to protect the environment.
Inclusion of Environmental Responsibility in CSR
- The corporate duty extends beyond shareholder protection to ecosystem protection.
- The definition of 'social responsibility' must include 'environmental responsibility'.
Fundamental Duty Under Article 51A(g)
- The Court linked companies to Article 51A(g) of the Constitution, which imposes a duty on citizens to protect and improve the natural environment.
- Corporate CSR funds used for environmental protection are not charity but a Constitutional obligation.
Protection of Endangered Species
- Corporate activities threatening endangered species habitats must adhere to the 'polluter pays' principle.
- CSR funds should support both ex-situ and in-situ conservation efforts.
Revised Priority Areas for Great Indian Bustard (GIB)
- The Court upheld an expert committee's recommendations to revise priority areas to 14,013 sq. km in Rajasthan and 740 sq. km in Gujarat.
- Immediate implementation of in-situ and ex-situ conservation measures for GIB within these areas.
- Conduct long-term studies on climate change effects on GIB.
- Accepted a power corridor up to 5 km width at a distance of 5 km or more from the Desert National Park in Rajasthan.
