Corporate Social Responsibility (CSR) and Ethical Business Practices in India: A Path toward Inclusive Growth

Abstract According to the New Company Law, 2012 all companies have to contribute 2% of their net profits towards CSR which made Indian companies to deliberately work towards CSR, as it is required a assumed class of companies to use a share of their profits on CSRevents. As the companies initiate their operations in the society, for the society and from different resources provided by the society, it becomes critical for them to give something in return to the society. CSR has become a fundamental business practice and it has gained much attention from the management of various large international companies. It enables the alignment of business processes with social ethics. CSR is deemed as a point of merging of various initiatives designed at ensuring socioeconomic development of the community. As we know, today Indian corporates go beyond Philanthropy (Charity) concept and it's more focus on all the stakeholders. This research paper attempts analyse the Corporate Social Responsibility practices followed by corporates operating in India. This study will help others in identifying the best CSR practices and to do further studies on what is best for India and what India really needs as CSR from the corporate. This study further seeks to identify the failures of companies in meeting the expectations of the society and helps to provide some suggestions to develop the CSR practices to better serve the society and the country on the loose. Corporate Social Responsibility (CSR) and ethical business practices have gained momentum in India due to increased stakeholder expectations, legal mandates, and global standards. CSR is no longer limited to philanthropy; it encompasses responsible business conduct that addresses social, environmental, and economic concerns. Ethics in business, meanwhile, demands honesty, transparency, and accountability. Indian firms are increasingly aligning CSR with their long-term strategies. Scholars argue that ethical business behaviour enhances brand reputation and stakeholder trust. However, enforcement remains weak, and there is often a gap between policy and practice.CSR and ethical business practices in India are evolving from a voluntary inventiveness to a strategic imperative. While regulatory backing has accelerated CSR adoption, ethical culture must be fostered internally for long-term impact. The future of responsible business in India lies in the synergy of law, leadership, and stakeholder engagement.