Corporate responsibility is a term which has come to characterize a family of professional disciplines intended to help a
corporation
A corporation or body corporate is an individual or a group of people, such as an association or company, that has been authorized by the State (polity), state to act as a single entity (a legal entity recognized by private and public law as ...
stay competitive by maintaining accountability to its four main stakeholder groups: customers, employees, shareholders, and communities.
Concept
The professional disciplines included in the corporate responsibility field include legal and financial compliance,
business ethics
Business ethics (also known as corporate ethics) is a form of applied ethics or professional ethics, that examines ethical principles and moral or ethical problems that can arise in a business environment. It applies to all aspects of business c ...
,
corporate social responsibility
Corporate social responsibility (CSR) or corporate social impact is a form of international private business industry self-regulation, self-regulation which aims to contribute to societal goals of a philanthropy, philanthropic, activist, or chari ...
, public and community affairs,
investor relations
Investor relations (IR) is a "strategic management responsibility that is capable of integrating finance, communication, marketing and securities law Regulatory compliance, compliance to enable the most effective two-way communication between a com ...
, stakeholder communications,
brand management
In marketing, brand management refers to the process of controlling how a brand is perceived in the market (economics), market. Tangible elements of brand management include the look, price, and packaging of the product itself; intangible element ...
, environmental affairs, sustainability,
socially responsible investment, and corporate philanthropy.
Prevalence
Major membership organizations and media in the Corporate Responsibility industry include
Business in the Community (bitc.org.uk),
WBCSD.org,
CERES,
National Investor Relations Institute, and ''
Compliance Week''.
Media coverage
''Business Ethics'' magazine (acquired in August, 2006 by The CRO, or Corporate Responsibility Officer) has helped to define the field with its 100 Best Corporate Citizens list, published since 1998. The Corporate Responsibility industry, which includes all
professional services Professional services are occupations in the service sector requiring special training in liberal arts and pure sciences education or professional development education. Some professional services, such as architects, accountants, engineers, d ...
purchased by
for-profit and
not-for-profit
A not-for-profit or non-for-profit organization (NFPO) is a Legal Entity, legal entity that does not distribute surplus funds to its members and is formed to fulfill specific objectives.
While not-for-profit organizations and Nonprofit organ ...
companies to maintain their levels of corporate responsibility, was valued by the CRO magazine at $20 billion in 2005.
In the USA, the failings of corporate responsibility have been closely associated with the
corporate scandals (
Enron,
Tyco,
Citigroup) of the 2000-2004 period and the
Sarbanes–Oxley Act of 2002, which was passed in response to these accounting scandals. Section 302 of the Sarbanes–Oxley Act specifically refers to the corporate responsibilities of the "signing officers" responsible for signing-off financial reports and accounts.
[Sarbanes–Oxley 101]
SOX Section 302: Corporate Responsibility for Financial Reports
accessed 2 October 2020
In the UK and Europe, the term is more generally associated with the local and Europe-wide regulations holding companies accountable to their stakeholders.
See also
*
Corporate social responsibility
Corporate social responsibility (CSR) or corporate social impact is a form of international private business industry self-regulation, self-regulation which aims to contribute to societal goals of a philanthropy, philanthropic, activist, or chari ...
References
{{Social accountability
Business law
Business ethics
Sarbanes–Oxley Act
Management cybernetics