Corporate Social Responsibility in an Insolvent Environment: Directors’ Continuing Obligations in English Law

International Company and Commercial Law Review, Vol. 7, p. 305, 2010

26 Pages Posted: 23 Aug 2011

See all articles by Jingchen Zhao

Jingchen Zhao

Nottingham Law School

John Paul Tribe

University of Liverpool

Date Written: June 1, 2010

Abstract

This paper critically examines Corporate Social Responsibility (CSR) in an insolvency context. The paper is divided into three parts. First, we examine the area of CSR generally. Secondly, we consider directors’ obligations to creditors in both a solvent and insolvent context. Thirdly, we examine directors continuing obligations to stakeholders during a formal insolvency process. This three-pronged analysis allows us to consider whether directors still owe CSR type obligations whilst a company is going through a formal insolvency procedure pursuant to English and Welsh law. It is this crossover between CSR and insolvency which is examined in part three of the paper. It is argued that directors continue to owe duties to creditors during an insolvency procedure but that they may also continue to have obligations towards wider stakeholders, including those that fall under the realm of CSR. It is argued that this continuing CSR responsibility evidences how ingrained CSR concepts now are in English and Welsh law.

Keywords: CSR Insolvency Creditors

Suggested Citation

Zhao, Jingchen and Tribe, John Paul, Corporate Social Responsibility in an Insolvent Environment: Directors’ Continuing Obligations in English Law (June 1, 2010). International Company and Commercial Law Review, Vol. 7, p. 305, 2010, Available at SSRN: https://ssrn.com/abstract=1914741 or http://dx.doi.org/10.2139/ssrn.1914741

Jingchen Zhao (Contact Author)

Nottingham Law School ( email )

Belgrave Centre
Chauser Street
Nottingham, NG1 5LP
United Kingdom

John Paul Tribe

University of Liverpool ( email )

Brownlow Hill
Liverpool, L69 3BX
United Kingdom

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