Corporate Social Responsibility,
Corporate Social Responsibility deals with the relationship between business and society. It involves how the business contributes to the environment, economic development of a society and how it impacts and interacts with stakeholders, suppliers, customers and communities. Corporate Social Responsibility is a mechanism utilized by companies engaged socially and economically to determine how their core values and strategies can enhance society.
In the wake of more stringent laws in respect of Criminal Law, Human Rights Law, Corporate Law, and Governance, Tort Law, Contract Law, Labour Law, and International Law as they relate to companies as separate legal personalities, companies have been forced to become more aware of their acts and how such acts affect society, in order to avoid liability.
Corporations have widely accepted that their by-laws may not be effective in protecting them against the risks they may encounter during the course of their functions and therefore exercise greater care in ensuring good corporate governance.
Therefore, it is useful for companies to become acquainted with the codes and measures of compliance which limit their scope of potential liability. This can be achieved through thorough investigations and full disclosure of financial audits and other documentation. Each company has its own complex and unique framework, hence, legal advice tailored to a company’s structure is effective in ensuring that companies are demonstrating socially responsible behaviour. Corporate Social Responsibility also provides for greater transparency and accountability of the Company.
If a company is properly advised in this area, it can reduce the company’s exposure to litigation.