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 !