), PP misjon.info misjon.info 24 | Page. Relationship between Corporate Social Responsibility and. Corporate Governance. Relationship between Corporate Governance and CSR CSR is gradually getting fused into companies' Corporate Governance practices. The Relationship between Corporate Social Responsibility, Reputation, HLS Forum on Corporate Governance and Financial Regulation, on.
Relation between CSR and Corporate Governance | Dr Nakib misjon.infolah - misjon.info
Corporate governance is considered as a means to the maintenance of balance between economic and social goals as well as between individual and community goals. To them the corporate governance is more concerned with the enhancement of shareholder value and the protection of the shareholder interests.
The Corporate Governance of 21st Century 38, The conflicting opinions as the relation of CG with CSR as revealed by above discussion chiefly lie on how it has been defined.
For example, if it is narrowly defined it concerns the relationship of company to its shareholders. If it is broadly defined the relationship of the company extends to the society.
Corporate Governance and Corporate Social Responsibility
A careful review of the model governance framework of OECD shows that corporate governance covers a range of issues for the protection of the interests of shareholders and stakeholders. Moreover, there are two models of corporate governance, shareholders and stakeholders.
But it is not a natural thing to separate them. If you have a well formed corporate governance programme in place, that would probably take care of most CSR issues.
For example, the company law of a country defines the composition of the board of directors, their rights and duties towards shareholders, duties of the managers and other organisational activities. The voluminous literature on the relationship between financial and social performance finds a modestly positive relationship between the two.
Indeed they are related as many of the CSR innovations in these countries tend to be more likely to reflect market actors and imperatives than CSR in say continental and Scandinavian Europe.
Denmark, Germany which yield both greater attention to the labour stakeholders and the collective interest in environmental sustainability. It also contrasts with the CSR in state-led market economies e.
France, Korea which tend to reflect a CG focus on national development. It contrasts with CSR in emerging and developing economies which tends to reflect a community orientation reflecting the features of high inter-personal trust and low institutional trust underlying the CG arrangements in many such countries. But notwithstanding the ways in which CSR has emerged as a feature of business as usual complementary with their respective CG systems, it seems to me that there are often deficits in company level governance of CSR.
Corporate Governance and Corporate Social Responsibility - Oxford Handbooks
However, CSR commitments increase the imperatives for more conspicuous governance of sourcing, contracts, production, employment, wastes, consumption and so forth. The challenges here are considerable, including the integration of CG measures for CSR across MNCs whose business units operate under very different CG systems; and particularly for SMEs in emerging and developing countries which have underdeveloped CG systems to start with.
Thus the fact that an increasing number of companies now fall under new reporting requirements such as come with stock exchange listing e.