By Güler Aras, David Crowther
The present financial state of affairs has highlighted deficiencies in company governance whereas additionally exhibiting the significance of stakeholder relatives. It has additionally raised the profile of the debates concerning company social accountability and proven the inter-relationship with governance. And the 2 jointly are crucial for sustainable company. The social and environmental contexts of commercial are usually thought of to be as major because the financial and fiscal contexts and stable governance will handle all of those elements. the mix of those facets deals long-term merits for a company, corresponding to lowering danger and attracting new traders, shareholders and extra fairness in addition to sustainable functionality. Written via specialists from world wide, A instruction manual of company Governance and Social accountability is the main authoritative single-volume consultant to the connection among reliable governance and social accountability and the truth of handling either. as well as the speculation and perform of governance and CSR, the ebook contains case reviews from huge and small companies and NGOs to focus on examples of fine and undesirable perform, and to teach overseas and cultural similarities and modifications whereas even as furthering the talk concerning the courting among stable governance and social accountability.
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Additional resources for A handbook of corporate governance and social responsibility
It may well solve some problems by legislating on them and then CSR is not necessary with respect to these problems any more. But it may just as well not manage to react to certain problems (Luhmann, 1990; Luhmann, 1984:645). Is Luhmann a Friedman? Note that the systems-theoretic scepticism of morally motivated CSR is not the same as saying that business organizations should not do CSR because ‘the business of business is business’. This is an argumentation which rests on the neoclassical model of the firm, in which its primary if not sole purpose is to maximize wealth for its shareholders.
During the era of individualism in the 1980s, however, a theoretical alternative was developed in the USA, which became known as Communitarianism, although the concept goes back to the earlier work of such people as Tonnies (1957) and Plant (1974). Communitarianism is based upon the argument that it is not the individual, or even the State, which should be the basis of our value system. Thus the social nature of life is emphasised alongside public goods and services. The argument is that all individuals, including corporations, have an obligation to contribute towards the public nature of life rather than pursuing their own self-interests.
It is understandable that investors’ protection has become a much more important issue for all financial markets after the tremendous firm failures and scandals. Investors are demanding that companies implement rigorous corporate governance principles in order to achieve better returns on their investment and to reduce agency costs. Most of the time, investors are ready to pay more for companies to have good governance standards. Similarly a company’s corporate governance report is one of the main tools for investor decisions.
A handbook of corporate governance and social responsibility by Güler Aras, David Crowther