ABSTRACT
The Corporate Social Responsibility (CSR) story is an interesting one. While the notion may seem fairly recent at first glance, some authors claim that its origins date back to the earliest ancient civilizations. Without going back that far, this chapter looks at the major phases that have shaped the concept over time. A new round of debate is launched at each attempt to redefine the role and responsibilities of large corporations. The most recent concerns the company's corporate purpose. One thing is for sure, though: with or without a purpose, business as usual is failing society in important ways. Yet very few call for a fundamental corporate law and governance reform. However, against a backdrop of rising environmental perils, social inequalities, and public mistrust, corporate law and governance must be able to respond to this new quest for meaning. Ideologically, the justification seems to have been found in the notion of sustainable development. By aligning their corporate purpose with sustainable development, companies can move beyond traditional profit motives to actively contribute to the public good, highlighting the crucial role of the private sector in addressing societal challenges. Corporate law, therefore, has the potential to contribute to the climate and social agenda, which has too often been left to philanthropy, provided, however, that there is a political consensus to do so. This chapter argues that corporate law shall serve as a form of “constitutional law” for the emerging “sustainable company,” reallocating powers within firms. Aligning corporate power with constitutional principles seems the only way to safeguard the interests of affected stakeholders while maintaining corporate autonomy.
