chapter  5
35 Pages

Corporate Social Responsibility, Corporate Governance, and Ethics

ByJos Marcus, Nick van Dam

Societies have grown to increasingly expect organisations to be transparent about their responsibility regarding their business operations, and the effects of those operations not only in terms of financial data, but also in terms of environmental and social consequences. With regards to Corporate Social Responsibility, there are two distinct perspectives: the classic perspective and the social-economic perspective. Corporate governance is described as the system used to manage and control companies, with transparency and responsibility seen as the most important characteristics of good accountability. As many companies operate internationally, they are regularly required to be in compliance with more than one corporate governance code. Corporate governance signifies ‘decent management’: corporate management of a kind that makes politically, socially, economically, and ethically responsible decisions. Many organisations have goals which show the influence of ethical motives, thus clearly profiling their position. Ethical organisational conduct can be influenced by various sources.