Corporate Social Responsibility as Obligated Internalisation of Social Costs
Journal of Business Ethics, 2019
42 Pages Posted: 23 Jan 2020
Date Written: December 20, 2019
We propose that corporations should be subject to a legal obligation to identify and internalise their social costs or negative externalities. Our proposal reframes corporate social responsibility (CSR) as obligated internalisation of social costs, and relies on reflexive governance through mandated hybrid fora. We argue that our approach advances theory, as well as practice and policy, by building on and going beyond prior attempts to address social costs, such as prescriptive government regulation, Coasian bargaining and political CSR.
Keywords: corporate social responsibility, externalities, reflexive law, reflexive governance, hybrid fora, social costs
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