FROM VOLUNTARY TO BINDING: A COMPARATIVE LEGAL ANALYSIS OF CORPORATE SOCIAL RESPONSIBILITY AND THE RIGHT TO LIFE IN SRI LANKA AND INDIA

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.