From Wielding Power to Bearing Social Responsibility: A Paradigm Shift

Abstract

Corporations are seen to involve themselves with relatively more people centered initiatives and actions which can be seen in their contribution to the society and the concern shown in various ways especially to in the human rights arena and environmental protection challenges. Corporate Social Responsibility schemes initiated by corporations have played a substantial role in the development scenario of nations with many corporations helping in different ways towards nation building. The article studies the corporate social responsibilities of corporations. The first part of the paper looks at what is corporate social responsibility and its significance to State. It studies the role that corporations have undertaken towards social agendas and initiatives taken which have undoubtedly contributed to nation building. In the second part the paper explores the contours of regulatory initiatives that have been taken to ensure that corporations are involved in the exercise towards good governance and see if the expectations of the State are met effectively and efficiently. It will see if there are asymmetries existing between corporate expectations and corporate actions. The third part of the paper studies the inaction on the part of corporations in actualizing social accountability plans and the benefits that can be expected. It will study the abyss between the need to assume responsibility, the willingness to assume responsibility and the hesitation to assume corporate responsibility. The Article explores the policies of corporations towards social accountability and the involvement of corporations in promoting good governance.