Corporate Governance and Social Responsibility in Business

3628 Words15 Pages
1.0 EXECUTIVE SUMMARY 2.0 INTRODUCTION TO CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY As a result of modern corporate scandals and rapid development of international business environments, social responsibility (SR) has become a key aspect of corporate competitive contexts. (Brammer, Williams and Zinkin, 2007). Businesses are under increasing pressure to incorporate SR amongst their profit-driven aims and have become increasingly accountable for their social and environmental actions. Increased interest in CSR developed in the mid 1990s as consumers began to lack their former trust in companies due to both environmental and financial scandals and it became noticeable that society was moving towards values incorporating harmony, quality of life and environmental conservation (Carrasco, 2007) Additionally, major corporate failures over the past two decades have resulted in increased demand for stronger, corporate governance (CG) rules. (Sui, Wright & Evans, 2007). Superior CG rules are needed in order to preserve the integrity of corporations, financial institutions and markets and the health and stability of world economies. (OECD Website) 3.0 THE IMPORTANCE OF CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY IN BUSINESS CG and SR continue to evolve and are no longer viewed the same as years ago. Businesses are now required to take on a broader range of responsibilities to society and provide to human values that were previously seen as unrelated to a company’s operating success. (Dennis et all 1998). These concepts remain a challenge for international companies as they are increasingly pressed to respond to stakeholders’ requests for additional accountability, as the gap between society and businesses continues to... ... middle of paper ... ... next cycle of corporate governance reform, Keeping Good Companies, 61, 5, pp.280-285 Head, B (2009) The benefits of being good, Information Age, April/May, pp.21-23 Phillips, P (2006) Learning’s contribution to the Triple Bottom Line, Chief Learning Officer, 5, 10, pp.52-54 Microsoft (2005) Finance Agenda - The business value of good corporate governance, viewed 22nd June 2010 http://download.microsoft.com/download/3/5/e/35e89ed5-267c-4642-ad8b-46ecaf7b45d3/Business%20Article%20-%20The%20Business%20Value%20of%20Good%20Corporate%20Governance.doc Masaka, D (2008) Why forcing corporate social responsibility is morally questionable, Electronic Journal of Business ethics and organizational studies, 13, 1 pp. 13-21 Bowie, (1991) New directions in corporate social responsibility - moral pluralism and reciprocity, Business Horizons, 34, 4 pp.56-65
Open Document