Abstract:
Corporate Social Responsibility (CSR) is a global standard which is widely
recognized as part of Ethical Business Conduct. However, its voluntary nature in
many jurisdictions makes it challenging to hold corporations accountable for
severe human rights violations; particularly the right to life. This study
investigates whether the voluntary nature of CSR principles in Sri Lanka and the
partially binding CSR laws in India safeguard the right to life and proposes
suggestions for a legal framework that transfers Sri Lanka’s voluntary regime to
legally binding obligations. This research uses doctrinal and comparative
methodologies to evaluate legal, institutional and policy frameworks on corporate
accountability and human rights in Sri Lanka and India. Section 135 of the India’s
Companies Act 2013, imposes obligations for companies to spend 2% of their
average net profits on CSR activities. In contrast, Sri Lanka lacks legal mandates,
and instead rely on sector-based voluntary codes. However, both jurisdictions fail
to secure the right to life in practice due to weak enforcement, minimal oversight,
and limited impact assessments. This research argues that voluntary CSR cannot
safeguard the right to life, and even mandatory provisions without proper
enforcement mechanisms are ineffective. A hybrid legal model is suggested to Sri
Lanka where statutory provisions to safeguard the right to life are combined with
independent regulatory oversight and mandatory human rights impact reporting.
Furthermore, it is essential for India to establish independent authorities with
prosecutorial powers to investigate whether the companies are integrating human
rights due diligence in their operations. In conclusion, to safeguard the right to
life, transferring symbolic CSR practices to legally binding obligations is essential
in both jurisdictions.
