Written for the Chapman Law Review Symposium on “What Can Law & Economics Teach Us About the Corporate Social Responsibility Debate?,” this Article applies the lessons of public choice theory to examine corporate social responsibility. The Article adopts a broad definition of corporate social responsibility activism to include both (1) those efforts that seek to convince corporations to voluntarily take into account corporate social responsibility in their own decision-making, and (2) the efforts to alter the legal landscape and expand legal obligations of corporations beyond traditional notions of harm and duty so as to force corporations to invest in interests other than shareholders and profits because they must comply with these new laws.After surveying the corporate social responsibility debate, this Article examines public interest-labeled groups (including corporate social responsibility groups) under a public choice lens and determines that they seek to maximize their budgets, maximize influence, maximize membership, secure their jobs, and in the case of corporate social responsibility sometimes directly effectuate wealth transfers into their organizations or constituencies (e.g., from shareholders to stakeholders). When rent-seeking for legal change is the more efficient use of corporate social responsibility advocates' limited resources, those groups will invest in the creation of law.This Article pays special attention to a broad definition of rent-seeking that includes the investments made, through precedent-building litigation models, in the creation of legal liability regimes or realistic new threats of legal liability in an effort to obtain leverage over corporations in settlements or other negotiations designed to convince corporations to change behavior. According to studies on settlement dynamics, when novel new litigation theories start to survive motions to dismiss, corporate defendants have more incentives to settle to avoid harm to reputation or brand, in addition to avoiding adverse judgments. The Article concludes using the Alien Tort Statute (“ATS”) as a case study illustrating how the interest-group dynamic can play out in the development of a corporate social responsibility-driven liability regime.

In a dramatic departure from its voluntary origins, corporate social responsibility (CSR) is rapidly shifting to hold multinational companies accountable for more than traditional shareholder performance. This CSR movement is embracing new environmental, social and governance (ESG) frameworks that both promote global sustainability goals and enhance accountability for negative impacts businesses can have on ‘planet and people’. This collection of essays by leading businesspeople, international civil servants, legal practitioners, academics, and other experts offers a forward-looking and pragmatic perspective that illuminates the major themes in this movement towards increasingly sustainable, transparent and accountable business practices. The collection shows how CSR has evolved to account for societal pressures, environmental, climate change and human rights impacts, international policy imperatives and the practical challenges of regulating commercial activity that transcends borders. The chapters offer an in-depth examination of current issues including: international frameworks and multistakeholder initiatives catalysing foundational change; the shifting emphasis on corporate imperatives to avoid harm to third parties; trends in CSR, focused on assuring the planet's future sustainability and social stability; regulatory initiatives around the globe, including Europe, North America, Asia and Africa; and extended accountability for activities of corporate group members and supply chains. The pressure and business case for companies to incorporate CSR into corporate governance is intensifying with each quarter, shareholder meeting, and regulatory agenda. The integration of CSR and new ESG frameworks into multinational corporate strategy and operations is key to sustainable business models that can generate long-term value for the organization and all stakeholders. Their acceptance as cornerstones of 21st century business practice appears inevitable. Taking full account of the imperative for companies and their lawyers to grapple with the practical and legal challenges in this area, this volume is an invaluable and pragmatic addition to the practitioners’ toolbox at this important juncture in an ever-more dynamic field.

Volume Two of Business and Society 360 focuses on research drawn from work grounded in 'corporate social responsibility' and 'corporate citizenship.'

In the contemporary debate on the modern corporation and its impact on the economy, society and nation, the focus has shifted from growth with only profitability to growth with sustainable development, which includes the stakeholders. While there is considerable debate on the corporations' obligations to civil society in the Western world, in the developing countries the debate is sporadic; the present publication is an effort to initiate a nationwide discourse on the concepts and practices of corporate social action in India.The book is divided in two sections; section one contains papers, which analyze the conceptual framework of Corporate Social Responsibility. The unique feature of this book is the case studies on different aspects of CSR presented in section Two. The cases focus on such segments as education, healthcare and environment, among others. It is for the first time that under the aegis of UNDP-CII-AICTE-MDI the business schools in the country participated in preparing cases from various industries focusing on the process and decision making content implicit in the introduction, implementation, and evaluation of various facets of Corporate Social Responsibility. The cases are illustrative and they will help in identifying further areas of research. The teaching notes have been developed by the individual authors, and will be available on request.

First Published in 2004. Routledge is an imprint of Taylor & Francis, an informa company.

"At present, Corporate Social Responsibility (CSR) for some may not be more than an attitude. Can it be more? What degree of commitment can we reasonably expect of corporations in the struggle to eradicate poverty, promote human rights, halt climate change and reverse ongoingenvironmental destruction? It is not a question of power; more than half of the worlds top 100 economies are corporations, not nation-states. Whatever can be done to "fix" the world's problems, corporations are in the best position to do [it]."--Back cover.

The "business case" for corporate social responsibility, which suggests that socially and environmentally aware companies can expect to reap financial rewards, is seemingly gaining widespread acceptance within the business community. This is particularly apparent in the ever-increasing number of prominent companies parading their social, ethical and environmental credentials by producing paper- or web-based social and environmental, or sustainability, reports. In so doing, reporting companies claim, they are demonstrating a clear commitment to transparency and accountability to their key stakeholder groups. However, in the prevailing voluntaristic, business-case-centred climate within which such initiatives are taking place, little thought appears to have gone into the question of how stakeholders, other than the capital provider group, can actually use corporate disclosures offered in order to hold management accountable for the social and environmental consequences of their actions. While much corporate rhetoric abounds concerning notions of stakeholder dialogue and engagement, rigorous analysis of the governance implications of their claimed commitment to the principles of corporate social responsibility is largely conspicuous by its absence. Corporate Social Responsibility, Accountability and Governance seeks to explore this "missing link" between CSR (and associated reporting initiatives) and governance mechanisms that are capable of embracing true stakeholder accountability. A wide range of case studies, drawing on experiences of both public- and private-sector initiatives in Europe, the United States, Canada, South America and Asia, offer insightful analysis of the complex relationships between the state, the market and civil society in the development of CSR, accountability and sustainable development. The book employs a multidisciplinary perspective in order to analyse the political, social, economic, technological, legal and organisational shaping of CSR. The complexities underpinning the concept are thereby clearly drawn out and the gross oversimplifications inherent in the prevailing consultancy-driven, business-case literature painfully exposed. Above all, the book offers a sound, practically and theoretically informed contribution to public policy debate and reflects and builds on urgent calls from public- and private-sector policy-makers as well as academics to develop better governance and accountability frameworks for business to deal with the imperatives of social responsibility, sustainable development and ethics. This book is divided into five parts. In Part 1, the complex concepts of responsibility, accountability and governance are discussed, and in particular the presumed relationships between the state, the market and civil society in improving accountability and governance are explored and critiqued. Part 2 consists of chapters relating to corporate social responsibility and stakeholder theory. Part 3 is concerned with empirical studies covering governance structures, networking and corporate social responsibility. Part 4 deals with corporate governance and its implications for regulators and civil society. Part 5 discusses multinational companies and how they impact on national governance regimes. Finally, a summary is provided with emerging international patterns of accountability and governance structures. Corporate Social Responsibility, Accountability and Governance will be essential reading for public and private policy-makers and practitioners and academics interested in how CSR can become more than a soundbite, and rather a substantial force for better global corporate governance and accountability.