Corporate Law and Social Responsibility
By Team Legistify / 2016-03-30
Is the only goal of the corporation that of maximizing profit? No. The legal spectrum is continuously trying to justify the answer by clarifying the meaning of Corporate Social Responsibility by creating a balance between the interests of the shareholders and that of the community and environment in which the corporation operates.

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Corporate law concentrates significantly on the corporate social obligation. This is otherwise called corporate obligation or corporate citizenship, is a type of self-administrative component whereby the organization would screen, check and guarantee its backing to group, law, moral standard and global models. This incorporates perceiving the obligations of business towards shoppers, environment, society, open hobby and different partners. The dynamism of today's corporate world makes it imperative for the legal spectrum to have a consolidated approach in formulating any CSR policy. It has to take into account the specific role and situation of law firms and bars, in particular, in the administration of justice. We see increasingly, clients who expect their lawyers to provide advice on CSR matters. As CSR is a newly emerging area of lawyers’ activities, encompassing soft and hard law, a lot of issues need further clarification, in particular, the exact scope of the mandate, the insurance coverage, potential liabilities and their limitation in client agreements.

Corporate Law and Social Responsibility are Voluntary in Nature

The traditional view in the corporate sector has been to maximise profits at any cost. This view has changed considerably over the years, however, the inclusion of law in the area of corporate social responsibility still raises few bows and draws scepticism from the profit-hungry, radicals of the top management. To remove this predicament and to facilitate the change, clarification is required in terms of the meaning of CSR. Many non-experts take the literal meaning of each word, such that "corporations are responsible for solving society's problems," instead of the narrower interpretation that " corporations cannot do whatever they want with society " or " corporations are responsible for the impact of their actions on society ."

Corporate law includes being responsible and focused on significant social activities. Basically, corporate social obligation (CSR) is a promise for the advancement of the group and society. It is safe to say that you are thinking about how organizations do this? They rehearse it by setting up optional corporate exercises and commitment of corporate assets. In any case, such a promise ought to be intentional in nature and not obliged under the law. The nation' s top business houses frequently take social activities, for example, starting efforts against Cancer, AIDS et cetera.

Legal Theories

Is the only goal of the corporation that of maximizing profit? No. The legal spectrum is continuously trying to justify the answer by clarifying the meaning of Corporate Social Responsibility by creating a balance between the interests of the shareholders and that of the community and environment in which the corporation operates.

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Get connected to the Best Lawyers and Chartered Accountants Near You!


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