Company & Securities Law Journal, 2007
32 Pages Posted: 23 May 2007
There has been a great deal of confusion about the ability of modern corporations to act according to public ethical and social concerns and their relationship to 'the business of business'. This article seeks to explore the theoretical underpinnings for the duties of directors and officers and the role of the corporation and by reference to that analysis suggest that if the community expectation is for a wider role then In managers deserve to have some of the uncertainty removed through an internalised permissive model that recognises the ability of managers to have regard to wider interests. Using self-regulation this article suggest a default replaceable rule that recognises the desire of managers to take the 'long view' without undue fear of being sued ex post by dissident shareholders.
Keywords: Corporations, social responsibility, directors' duties, corporate governance
JEL Classification: K22, K10, G34
Suggested Citation: Suggested Citation
Lumsden, Andrew and Fridman, Saul, Corporate Social Responsibility: The Case for a Self Regulatory Model. Company & Securities Law Journal, 2007; Sydney Law School Research Paper No. 07/34. Available at SSRN: https://ssrn.com/abstract=987960