Just as integrating CSR and compliance can strengthen a
company's capacity to improve its environmental, social, and
governance performance, so can CSR strengthen a company's
overall compliance efforts.
In the context of CSR, stakeholders often ask companies to go
"beyond compliance" with existing legal and regulatory
standards. At the same time, stakeholder demands are often
predictive of the future content of legal and regulatory
requirements. A traditional compliance-based approach to social and
environmental performance may be focused on meeting current legal
requirements: an approach to environmental, social, and governance
compliance that is more aligned with a company's CSR strategy
may be more attuned to policy trends, shifting stakeholder demands,
and other developments that companies need to understand in order
to support effective long-term strategy development.
A recent article on corporate compliance
observed that, "the pace in which our world runs is not
slowing....Organizations that seek to manage their operational
fraud and compliance risks by solely imposing rule after rule will
never keep pace with change[.]" Failure to anticipate
where the law is going, or what key stakeholders may expect in
terms of corporate performance, will leave a company without the
capacity to address future requirements.
A responsible approach to CSR is one that is naturally attuned
to trends in law and policy. CSR has evolved and broadened in scope
over time along with normative understandings and expectations with
regard to companies' roles in society. If CSR is defined as
voluntary commitments to stakeholders, as opposed to legally
required compliance efforts, it can also certainly be seen as
predictive of the direction in which laws and regulations may be
trending. Integrating CSR into corporate compliance efforts may
focus executive and board attention on how best to build corporate
capacity to address both current and future expectations for
Excerpt reproduced with the permission of Wolters
Kluwer from Theodore Banks & Frederick Banks (eds.),
"Corporate Social Responsibility," Corporate Legal
Compliance Handbook, Chapter 15 (2016). A copy of the full
handbook can be purchased here.
To view Foley Hoag's Corporate Social Responsibility
Blog please click
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
To print this article, all you need is to be registered on Mondaq.com.
Click to Login as an existing user or Register so you can print this article.
Foley Hoag will present a 60-minute webinar on Wednesday, January 25, 2017 at 12:30 pm EST offering guidance to in-house counsel on best practices for pharmaceutical and biologics companies in selecting, vetting, and seeking approval for medication product names. The focus will be primarily on the U.S. market, although foreign strategies may be addressed as well.
25 Jan 2017, Seminar, Massachusetts, United States
Please join us on Wednesday, January 25 at the Westin Waltham Hotel for our quarterly New England M&A Forum, which brings the latest in market trends and recent legal developments to the New England M&A professionals' community.
Sellers love them, buyers hate them, but auctions are a mainstay of the M&A landscape. Our panel of experts, led by Foley Hoag partner Bill Kolb, will discuss legal, business and strategic considerations in structuring and participating in auctions from both the buy-side and the sell-side.
Perhaps the most critical challenge facing the board as 2017 begins is the need for its members to gain both an awareness and an understanding of the health care policy initiatives currently under consideration in Washington.
Register for Access and our Free Biweekly Alert for
This service is completely free. Access 250,000 archived articles from 100+ countries and get a personalised email twice a week covering developments (and yes, our lawyers like to think you’ve read our Disclaimer).