Corporates have fundamental duty to protect the ecosystem, asserts SC, Pg12

Key Highlights:

• The Supreme Court has declared that Corporate Social Responsibility (CSR) inherently includes environmental responsibility.
• The ruling came during a case concerning the protection of the Great Indian Bustard, a near-extinct bird species.
• Companies are now under the ambit of Article 51A(g) of the Constitution, mandating environmental protection.
• CSR funds allocated for environmental protection are now considered a Constitutional obligation, not charity.

Detailed Insights:

• The court emphasized that companies must protect the ecosystem, not just shareholders, and that environmental responsibility is a key part of social responsibility.
• The 'polluter pays' principle requires companies whose activities endanger species to bear the cost of recovery efforts, directing CSR funds towards conservation.
• Non-renewable power generators in Rajasthan and Gujarat, near the Great Indian Bustard's habitat, must operate with consideration for the bird's environment.
• The court upheld recommendations to revise priority areas for the Great Indian Bustard to 14,013 sq. km in Rajasthan and 740 sq km in Gujarat.

Key Concepts Involved:

• Corporate Social Responsibility (CSR): A company's commitment to manage its business processes for a positive impact on society.
• Article 51A(g): A constitutional duty on every citizen to protect and improve the natural environment.
• Polluter Pays Principle: The principle that those who produce pollution should bear the costs of managing it to prevent damage to human health or the environment.