Governance of corporate social responsibility (CSR)

Leadership at board level is crucial to ensure responsible business, sometimes referred to as corporate social responsibility (CSR), is considered strategically important.

According to the UK Combined Code on Corporate Governance, “Directors should set the values and standards of the company and ensure that it meets its obligations to shareholders and others.”

Board members can create a culture where integrity is valued, and encourage senior management to adopt responsible business. They are uniquely placed to define the behaviour that determines how a company meets its obligations and manages its social impacts. 

Since the enactment of the Code, and the progression of the long-running UK Company Law Review, there has been a renewed interest in an ‘enlightened’ approach to value creation. This takes into account, where relevant, the interests of other stakeholders, the company’s social impacts and its reputation for integrity.