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.
Join NECEC— the premier voice of businesses building a world-class clean energy hub in the Northeast—and Foley Hoag’s Energy and Cleantech practice for a not-to-be-missed discussion with offshore wind developers, leading public officials, investors and experts at the cutting edge of the Northeast’s emerging offshore wind market.
After decades of speculation about offshore wind’s future in the United States, the industry that has long powered grids in Europe has finally arrived in the Northeast. In the last year America’s first offshore wind project--off the coast of Rhode Island--started spinning and delivering power to the grid, Massachusetts Governor Charlie Baker signed into law a bill authorizing the procurement of 1,600 megawatts of offshore wind, and New York Governor Andrew Cuomo committed to 2,400 megawatts of offshore wind off the coast of New York by 2030. Meanwhile, major utilities have announced agreements with developers to purchase energy generated from the projects planned for the eastern seaboard.
The Department of Justice (DOJ) doubled-down on emphasizing corporate compliance programs with new guidance from the Criminal Division Fraud Section with the "Evaluation of Corporate Compliance Programs".
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).