Corporate Social Responsibility: The Case for a Self Regulatory Model

Company & Securities Law Journal, 2007

Sydney Law School Research Paper No. 07/34

32 Pages Posted: 23 May 2007  

Andrew Lumsden

Corrs Chambers Westgarth

Saul Fridman

The University of Sydney Law School

Abstract

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

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

Andrew J. Lumsden

Corrs Chambers Westgarth ( email )

Governor Phillip Tower
1 Farrer Place
Sydney NSW 2000
Australia

Saul Fridman (Contact Author)

The University of Sydney Law School ( email )

New Law Building, F10
The University of Sydney
Sydney, NSW 2006
Australia

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