In a landmark judgment with far-reaching implications for India's corporate sector, the Supreme Court has firmly placed ecological and environmental protection within the ambit of Corporate Social Responsibility (CSR). The ruling, delivered on Friday, aims to safeguard the critically endangered Great Indian Bustard (GIB) from the threats posed by non-renewable power infrastructure in the states of Rajasthan and Gujarat.
Court's Stern Directive to Power Companies
A bench comprising Justices P S Narasimha and Atul S Chandurkar issued a series of binding directions to non-renewable power generators operating in the bird's habitat. The justices emphasized that these companies must operate with the awareness that they share the environment with the GIB. The bench metaphorically stated that power companies must conduct their activities as if they are "guests" in the abode of the Bustard.
The court accepted the recommendations of an expert committee it had appointed, designating revised priority conservation areas spanning 14,013 square kilometers in Rajasthan and 740 square kilometers in Gujarat. Crucially, it upheld a blanket ban on the installation of new solar power projects with a capacity exceeding 2MW and the laying of overhead transmission lines in these zones, despite opposition from power companies.
CSR for Environment: A Constitutional Duty, Not Charity
In a significant elaboration of corporate accountability, the judgment, authored by Justice Narasimha, redefined the essence of social responsibility. The bench declared that a company's definition of CSR must inherently include environmental responsibility. "Companies cannot assert to be socially responsible while ignoring equal claims of the environment and other beings of the ecosystem," the court observed.
Linking corporate duty to the Constitution, the ruling cited Article 51A(g), which imposes a fundamental duty on every citizen to protect and improve the natural environment. The Supreme Court stated that a corporation, as a legal person and a key organ of society, shares this fundamental duty. "CSR funds are the tangible expression of this duty. Consequently, allocating funds for the protection of the environment is not a voluntary act of charity but a fulfilment of a constitutional obligation," the judgment read.
The court further clarified that the CSR provision in law codifies the principle that corporate profit is not solely the private property of shareholders but is partly owed to the society that enables its generation.
Cultural and Ecological Survival at Stake
The Supreme Court underscored that the survival of the Great Indian Bustard is a shared cultural responsibility for the nation. The bird was described as representing not just a species, but the unique natural heritage and resilience of India's arid landscapes. This ruling marks a pivotal shift, nudging the corporate sector to play an active and legally accountable role in environmental conservation, setting a precedent for how development and ecology must coexist.
