CORPORATE SOCIAL LIABILITY IN GLOBAL VALUE CHAINS (FROM VOLUNTARY COMMITMENTS TO LEGAL OBLIGATIONS)

Abstract

This article explores the global transition from voluntary Corporate Social Responsibility (CSR) to enforceable Corporate Social Liability (CSL) in the governance of transnational business operations and Global Value Chains (GVCs). While CSR has traditionally relied on ethical self-regulation and reputational incentives, it has consistently failed to prevent systemic human rights abuses, labour exploitation, and environmental harm, especially in jurisdictions with weak regulatory capacity. CSL offers a normative and legal alternative grounded in principles of de facto control, economic dependency, and transnational influence. Through a comparative and doctrinal methodology, the article analyses key jurisprudential developments such as Urbaser v Argentina, Vedanta v Lungowe, and Okpabi v Shell alongside statutory models like France’s Duty of Vigilance Law and the EU Corporate Sustainability Due Diligence Directive. Special attention is given to India’s statutory CSR regime under Section 135 of the Companies Act, 2013, which, despite its pioneering status, lacks due diligence obligations and accountability mechanisms. The article proposes integrating CSL into Indian law through targeted legislative amendments, regulatory empowerment of bodies like SEBI and the NGT, and constitutional interpretation under Article

1. By linking socio-legal theory with practical enforcement tools, the study argues for a rights- based model of corporate governance that prioritises legal accountability over symbolic compliance, offering a roadmap for India and other Global South jurisdictions to lead the next phase of responsible globalisation.