Supreme Court Rules Corporates Have a Fundamental Duty to Protect the Ecosystem Under CSR
The Supreme Court of India has ruled that Corporate Social Responsibility (CSR) inherently includes environmental responsibility. Interpreting Article 51A(g) of the Constitution, the Court held that corporations, as legal persons, have a fundamental duty to protect and improve the natural environment. The judgment, delivered in a case concerning the Great Indian Bustard, emphasizes that CSR is a constitutional obligation rather than a voluntary act of charity. Consequently, companies operating near sensitive habitats must prioritize conservation efforts and adhere to the 'polluter pays' principle. This ruling mandates that CSR funds be directed toward both in-situ and ex-situ conservation to prevent species extinction.
Key Points
- The Supreme Court linked Corporate Social Responsibility (CSR) to the fundamental duty under Article 51A(g).
- Corporations are now legally recognized as having a duty to protect forests, lakes, rivers, and wildlife.
- The ruling specifies that CSR funds should be directed toward in-situ and ex-situ conservation of endangered species.
- The 'polluter pays' principle mandates that companies bear the cost of habitat restoration and species recovery.
Exam Facts
- Article 51A(g) of the Constitution imposes a fundamental duty to protect the natural environment.
- The case involved the protection of the Great Indian Bustard, a flagship species of arid grasslands.
Read it. Retain it. Recall it.
Get spaced-repetition flashcards, daily quizzes and offline access — free on Android.