Incorporating corporate social responsibility into legal frameworks in balancing profits & public interest

Corporate Social Responsibility (CSR) is a company’s commitment to its business model where it integrates social, ethical and environmental considerations into its operations. Such operations of CSR will impact society and the environment while improving its brand reputation and long-term success. CSR reports are typically published annually to disclose sustainability commitments and meet stakeholder expectations. While CSR builds trust and addresses societal needs, some companies use disclosures mainly for marketing or profit, risking reputational damage through exaggerated claims. This misuse undermines CSR’s ethical goals, especially when errors or restatements occur, weakening stakeholder confidence. Studies on enforcement, disclosure accuracy and societal impact of CSR remain limited, emphasising the need for deeper analysis to ensure accountability and public alignment. This study examined the current practice of enforcing CSR and its effect on the public and companies. A doctrinal research approach involving structured analysis of statutory provisions, regulatory framework, and judicial decisions was employed. The study found that there is a need to have a proper legal framework that can balance the profit and public interest when implementing CSR. The studies further found that CSR is also interrelated with environmental, social and governance (ESG). Guidelines and standardised reporting of CSR are crucial since the disclosure of information demonstrates the company’s accountability and responsibility in not only attracting investors and improving financial performance but also commitment to the public and stakeholders. The outcome of this research will help legislators to have a clear understanding of CSR and draw up a legal framework for CSR. The results of the study also help companies to align their business model with global sustainability goals and lead to a more informed investment decision.