Corporate Governance and CSR

Good corporate governance is the foundation of CSR. Systemic organizational failures
and negative social consequences are created by corporate governance structures
and processes, which impact stakeholder relationships and are risks for
business. Viewed from this context, CSR is a risk management strategy for business.
To overcome these risks, businesses need risk management strategy which can be
designed by formulating and implementing CSR strategy and preparing triple
bottom line reports.

As CSR is fundamentally concerned with transparency, accountability and performance, it
is important for the CSR decision-making structure to be an integral component
of the corporate governance system. For developing ethical business standards
within the organization there are several options for board participation in
CSR activities.

Recognizing the fact that businesses are vital partners in development, the governance
standards and the stakeholder social responsibility practices adopted by the
companies need to be strategically aligned to achieve both business and social
goals. Corporate governance & CSR are crucial elements to foster
sustainability of businesses and society.