Corporate Social Responsibility And Its Legal Requirements

Introduction In today s economic and social environment, issues related to social responsibility and sustainability are gaining more and more importance, especially in the business sector (Webfinance. 2014). Business goals are inseparable from the societies and environments within which they operate. Whilst short-term economic gain can be pursued (Catalyst Consortium. 2002), the failure to account for longer-term social and environmental impacts makes those business practices unsustainable. In our current society, the Global Compact asks companies to embrace, support and enact, within their sphere of influence, a set of core values in the areas of human rights, labor standards, the environment and anti-corruption (Corporate Watch. 1996 –†¦show more content†¦2014).An example of CSR being implemented would be that business would contribute the community by giving away charity such as money or clothes. Another example would be of having an environmental clean-up in the area of the b usiness located. Business sustainability depends on organizations taking into account the social and environmental consequences of their actions and decisions whether it is today or in the future There is increasing pressure on organizations to make a POSITIVE contribution to society or reduce their NEGATIVE impact on society. Even around the world the governments are also moving towards the enforcement of certain parts of CSR. The most focused part of CSR is regards to the protection of the environment. Many businesses in the past have primarily concerned with increasing shareholders’ value. Shareholders are people who own a part of the business and share in its profits (G. Katherina. 2010). In big corporations, this could potentially include thousands of people who receive dividends and who hold shares in the business (Smallbizconnect. 2014). Legal requirements There are laws in CSR that give basic human rights to become recognised. Being a good CSR company includes respecting the human rights of those who come into contact with the corporation in any way. This might be in a direct contact (for example, employees or customers), or indirect contact (for example, workers of suppliers, or