Open Access Research Article

ARTIFICIAL INTELLIGENCE AND CORPORATE SOCIAL RESPONSIBILITY: ETHICAL GOVERNANCE, ENVIRONMENTAL SUSTAINABILITY AND RESPONSIBLE INNOVATION BY – BADARQUAH & SARAH MUMTAZ

Author(s):
BADARQUAH SARAH MUMTAZ
Journal IJLRA
ISSN 2582-6433
Access Open Access
Volume 3
Issue 8
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Abstract

The corporation of the algorithmic age no longer discharges its social obligations principally through philanthropy. It discharges or evades them through code. As artificial intelligence migrates from an operational curiosity to the central nervous system of corporate decision-making, Indian corporate law continues to conceptualise Corporate Social Responsibility (“CSR”) as a quantum of profit to be spent, rather than a quality of conduct to be governed. This paper argues that the statutory architecture of CSR under Section 135 of the Companies Act, 2013, and the enumerated activities of Schedule VII, were designed for an industrial paradigm of externalities and are structurally incapable of capturing the distinctive harms of algorithmic enterprise: discriminatory automated decision-making, opaque “black-box” models, the erosion of informational privacy, and a prodigious and largely undisclosed environmental footprint. It further contends that the fiduciary mandate of Section 166 — which commands directors to act for the benefit of employees, the community and the environment — already supplies a latent but unactivated basis for algorithmic accountability, and that the Securities and Exchange Board of India’s Business Responsibility and Sustainability Reporting framework must be recalibrated to mandate disclosure of AI data ethics and automated human-resource systems. Reading the Companies Act alongside the National Guidelines on Responsible Business Conduct, the constitutional guarantees of equality and a wholesome environment, and the emerging transnational consensus reflected in the EU Artificial Intelligence Act, the OECD AI Principles and India’s own AI Governance Guidelines of November 2025, the paper proposes a doctrinal and statutory model of “Responsible Innovation.” That model would treat AI-induced environmental degradation as a core CSR liability, embed algorithmic impact assessments, mandatory human-in-the-loop safeguards and board-level AI ethics committees into the governance fabric of the company, and thereby convert corporate engagement with AI from reactive compliance into proactive, constitutionally congruent stewardship ———   Keywords: corporate social responsibility, artificial intelligence governance, responsible innovation, algorithmic accountability, environmental sustainability  

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Authors: BADARQUAH & SARAH MUMTAZRegistration ID: 1013604 | Published Paper ID: IJLRA13604 & IJLRA13605Approved ISSN: 2582-6433 | Country: Delhi, India

Article Information

ARTIFICIAL INTELLIGENCE AND CORPORATE SOCIAL RESPONSIBILITY: ETHICAL GOVERNANCE, ENVIRONMENTAL SUSTAINABILITY AND RESPONSIBLE INNOVATION BY – BADARQUAH & SARAH MUMTAZ

Authors: BADARQUAH, SARAH MUMTAZ

  • Journal IJLRA
  • ISSN 2582-6433
  • Volume 3
  • Issue 8
Citation Download Paper Full Details Search on Google Search on Google Scholar

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International Journal for Legal Research and Analysis

  • AbbreviationIJLRA
  • ISSN2582-6433
  • AccessOpen Access
  • LicenseCC 4.0

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