Open Access Research Article
DIRECTORS’ DUTIES AND ESG ACCOUNTABILITY IN INDIA: REASSESSING SECTION 166 OF THE COMPANIES ACT, 2013
Abstract
Corporate governance is increasingly evaluated not only by financial performance but also by a company’s treatment of employees, communities and the environment. Indian company law recognises this broader perspective through Section 166(2) of the Companies Act, 2013, which requires directors to act in good faith in the interests of the company, its employees, shareholders, the community and for the protection of the environment. At the same time, sustainability reporting requirements developed by the Securities and Exchange Board of India (SEBI), including the Business Responsibility and Sustainability Report (BRSR) framework and BRSR Core, have strengthened the disclosure dimension of corporate accountability. This article examines the relationship between directors’ statutory duties and ESG disclosures. Using doctrinal analysis of legislation, regulatory materials and judicial decisions, it argues that disclosure alone does not guarantee responsible decision-making. Challenges include the uncertain practical meaning of stakeholder interests, uneven capacity among companies, risks of selective reporting, and the difficulty of translating sustainability data into board-level action.The article proposes a proportionate, evidence-based approach that links ESG risks to board oversight, internal controls, transparent reporting and meaningful accountability, while avoiding the assumption that every adverse ESG outcome automatically establishes a breach of directors’ duties.
Published Paper
Author Details
Authors: ANJALI KRISHNARegistration ID: 1013507 | Published Paper ID: IJLRA13507Approved ISSN: 2582-6433 | Country: Delhi, India
Article Information
DIRECTORS’ DUTIES AND ESG ACCOUNTABILITY IN INDIA: REASSESSING SECTION 166 OF THE COMPANIES ACT, 2013
Authors: ANJALI KRISHNA
- Journal IJLRA
- ISSN 2582-6433
- Volume 3
- Issue 7
About Journal
International Journal for Legal Research and Analysis
- AbbreviationIJLRA
- ISSN2582-6433
- AccessOpen Access
- LicenseCC 4.0
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