corporate governance and corporate social responsibility synergies and interrelationships dima...
TRANSCRIPT
Corporate Governance & Corporate (Social Responsibility Synergies and Interrelationships)
Group Members: M.Rehman Shabbir-005Farhan Abbas Rizvi-081
M.Salman Shahid-021Faizan Anjum-101Date:
Monday 1 May 2023
Paper will focus on
Corporate Governance (CG)Corporate Social Responsibility
(CSR) Synergies and Interrelationships
Corporate Governance CGThe system by which companies are
directed and controlled◦CG encompasses◦the notions of compliance,◦Accountability◦transparency
How managers exert their functions through compliance with the existing laws
regulations and codes of conduct
CG encourage the companies
To promote ethics or fairness
Transparency, and accountability in all their dealings
They are expected to continue generating profit
Maintaining the highest standards of governance internally
Corporate SocialResponsibility (CSR) demonstrates
Companies should balance interests of◦Customers◦Communities◦Business partners◦employees with those of
shareholders
To meet public requirements for CSR compliance.
Corporate Social Responsibility (CSR)Evolved largely in the early 21st
century Basic standards of business
ethicsTaken simple concepts of honest
and transparencyAdded expectations for
companies of social and environmental responsibility
Result CSR is based on self-regulatory principles linked to internal and external management of the company.
Corporate governance‟ indicates to an idea of company's governance and management issue
Corporate governance is a broad theory concerned with the alignment of management and shareholder interest
Four Key Pillars of Corporate Social Responsibility (CSR)
Strategic Governance Human Capital
Strategic scanning capability
Agility / adaptationPerformance indicators/monitoringTraditional
governance concerns International “bestpractice”
Labor relationsRecruitment /
retention strategiesEmployeemotivation Innovation capacityKnowledgedevelopment
Four Key Pillars of Corporate Social Responsibility (CSR)
Stakeholder Capital Environment
Regulators andpolicy makersLocal
communities/NGOsCustomer
relationshipsAlliance partners
Brand equityCost/risk reductionMarket share growthProcess efficienciesCustomer loyalty Innovation effect
Corporate Social Responsibility Embedded in Corporate Governance
Strategic Leadership
Stewardship
Board Structure
Capital Structure & Market Relations
Social Responsibilities
CG and CSR as Part of a ContinuumIntegrative frameworkvarying degrees of compliance
RESEARCH METHODOLOGYTop managers of eight
corporationsScreening provided a preliminary
ideaInterviewsCase studies
FINDINGS & THEORETICAL PROPOSITIONS(cont.)
Awareness of international codes of
good governance• Counterbalanced • Appreciation • Needs to be
considered in context
• Practices are invariably influenced
• Moulded by national institutional environments
• Cultural• Economic
Various constraints stemming from
• Macroeconomic instability
• Very limited attention
• Capacity of the regulatory
• Judicial systems in the country.
FINDINGS & THEORETICAL PROPOSITIONS(cont.)
• Local socio-politico-institutional environments significantly affect CG practices in developing countries.
Proposition 1
• Limited institutional pressures for homogenization in CSR translate into philanthropic and instrumental CSR orientations in developing countries.
Proposition 2
• Good CG is increasingly considered in developing country contexts as a necessary foundational pillar for a genuine and sustainable CSR orientation.
Proposition 3
• good CG in developing economies is increasingly complemented by due regard and consideration for voluntary corporate social performance.
Proposition 4
FINDINGS & THEORETICAL PROPOSITIONS(cont.)
CG and CSR are two sides of the same
coin (Bhimani & Soonawalla, 2005).
It posits CG as a necessary
foundational pillar or building block for
CSR Hancock (2005)
It illustrates the crossconnects
between CG and CSR revolving around
strategic leadership and stewardship as
implied in Ho’s (2005)
CONCLUDINGCG & CSR should not be considered and sustained independently
CG necessary pillar for CSR
CSR orientation in internal roots of CG foundation
CG is not entirely effective without a sustainable CSR
CG sets the overall tone for the organization
Thank You !