Balancing CSR Through Regulation

Abstract

This research paper deals with the connotation of government's regulation on CSR. Public institution which include the legislature, are the driving force toward the policy making in turn which regulates the conduct of each and every person(which here includes the private institutions such as industries, banks, firms, trade unions etc.2) under the territory. Corporate social responsibility (CSR) as generally practiced through voluntary action of industries is market based, but in the context of developed countries the corporations even when complying with their part of responsibility do it just to gain a uppercut over corporate competitors. Thus there is a need for corporate law to create fear of prosecution in case of infringement. The researchers also submit that there is a need of public sector assistance to the succeeding sector i.e. private sector, in reference to CSR for difficulties which originate from the regulated CSR such as interpretation of codified expression, financial burden and problems of which they are not accustomed. Responsibility of government originates from the very virtue of Rousseau's 'social contract theory' through which government should create the environment and opportunities for the business. These relevant instances within the scope and nature of policy maker's intervention as government agenda and to the contrary voluntary action as a self-regulation of private sector.