The Impact of Corporate Social Responsibility on Corporate Governance: The Rise of Standardization of CSR Principles

  • Mia Mahmudur RahimEmail author


The synergy between corporate social responsibility (CSR) and corporate governance (CG) has changed the commercial environment. It has developed a complex and multi dimensional organizational phenomenon that could be defined as the extent and the way in which a business corporation can pragmatically respond to its consumer and society. This synergy has joined the political endeavours to make corporations more attuned to public, environmental and social needs. It has standardized CSR principles and created the agencies specialized in broader ethical considerations of business corporations. This chapter deals with these issues. It assesses how the impact of CSR on CG has contributed to the standardization of CSR principles and the rise of agencies specialized in facilitating social responsibility performance of business corporations.


Corporate Social Responsibility Social Responsibility Corporate Governance Business Case Business Enterprise 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


  1. Alexander, G., & Bucholtz, R. (1978). Corporate social responsibility and stock market performance. Academy of Management Journal, 21, 479–486.CrossRefGoogle Scholar
  2. Bagi, A., Krabalo, M., & Narani, L. (2004). An overview of corporate social responsibility in Croatia. Zagreb: AED.Google Scholar
  3. Bank, B. (2007). Bnagladesh bank annual report 2006–2007. Dhaka: Bangladesh Bank.Google Scholar
  4. Bebchuk, L., Cohen, A., & Ferrell, A. (2009). What matters in corporate governance? Review of Financial Studies, 22(2), 783.CrossRefGoogle Scholar
  5. Becht, M., Bolton, P., & Röell, A. (2003). Corporate governance and control. Handbook of the Economics of Finance, 1, 1–109.CrossRefGoogle Scholar
  6. Belal, A. R. (2008). Corporate social responsibility reporting in developing countries: The case of Bangladesh. Ashgate Publishing Company.Google Scholar
  7. Bendell, J., Miller, A., & Wortmann, K. (2011). Public policies for scaling corporate responsibility standards: Expending collaborative governance for sustainable development. Sustainability Accounting, Management and Policy Journal, 2(2), 263–293.CrossRefGoogle Scholar
  8. Bhattacharya, C., & Sen, S. (2004). Doing better at doing good: when, why, and how consumers respond to corporate social initiatives. California Management Review, 47(1), 9–24Google Scholar
  9. Blackett, A. (2000). Global governance, legal pluralism and the decentered state: A labor law critique of codes of corporate conduct. Indiana Journal of Global Legal Studies, 8, 401.Google Scholar
  10. Blowfield, M., & Frynas, J. G. (2005). Editorial Setting new agendas: critical perspectives on Corporate Social Responsibility in the developing world. International Affairs, 81(3), 499-513.Google Scholar
  11. Blair, M. (1995). Ownership and control: Rethinking corporate governance for the twenty-first century. Washington: Brookings Institution Press.Google Scholar
  12. Bonifant, B., Arnold, M., & Long, F. (1995). Gaining competitive advantage through environmental investments. Long Range Planning, 28(6), 128.Google Scholar
  13. Bowman, E., & Haire, M. (1975). A strategic posture towards CSR. California Management Review, 18(2), 49–58.CrossRefGoogle Scholar
  14. Bradgon, J. H., & Marlin, J. (1972). Is pollution profitable? Risk Management, 19(4), 9–18.Google Scholar
  15. Brunsson, N., & Jacobsson, B. (2000). A world of standards.Google Scholar
  16. Cacioppe, R., Forster, N., & Fox, M. (2008). A Survey of Managers’ Perceptions of Corporate Ethics and Social Responsibility and Actions that may Affect Companies’ Success. Journal of Business Ethics, 82(3), 681–700Google Scholar
  17. Carroll, A. (1999). Corporate social responsibility. Business and Society, 38(3), 268.CrossRefGoogle Scholar
  18. Commission, E. (2001). Promoting a European Framework for Corporate Social Responsibility: Green Paper. Luxembourg: Office for Official Publications of the European Communities.Google Scholar
  19. Commission, E. (2002). Corporate social responsibility: A business contribution to sustainable development. retrieved 7 December,2010, from!celexplus!prodDocNumber&lg=en&type_doc=COMfinal&an_doc=2002&nu_doc=347.
  20. Compact, G. The ten principles,, 1 June 2013.
  21. Council of Bars and Law Societies in Europe, (2003a). Corporate Social Responsibility and the Role of the Legal Profession: A Guide for European Lawyers.Google Scholar
  22. Council of Bars and Law Societies in Europe, (2003b). Corporate social responsibility and the role of the legal profession: A guide for European lawyers and advising on corporate social responsibility issues.Google Scholar
  23. Crowther, D., & Capaldi, N. (2008). The research companion to corporate social responsibility. Aldershot: Ashgate.Google Scholar
  24. Daily, C., Dalton, D., & Cannella, A, Jr. (2003). Corporate governance: Decades of dialogue and data. The Academy of Management Review, 28(3), 371–382.Google Scholar
  25. Davis, K. (1973). The case for and against business assumption of social responsibilities. Academy of Management Journal, 16(2), 312–322.CrossRefGoogle Scholar
  26. Dechant, K., Altman, B., Downing, R., Keeney, T., Mahoney, M., Swaine, A., et al. (1994). Environmental leadership: from compliance to competitive advantage [and Executive Commentary]. The Academy of Management Executive (19932005), 8(3), 7–27.Google Scholar
  27. Eisenberg, M. (1982). Modernization of corporate law: An Essay for Bill Cary. The University of Miami Law Review, 37, 187.Google Scholar
  28. Elkington, J. (1992). Towards the sustainable corporation: Win-win-win business strategies for sustainable development. California Management Review, 36(2), 90–100.CrossRefGoogle Scholar
  29. Elkington, J. (1998). Partnerships from cannibals with forks: The triple bottom line of 21st century business. Environmental Quality Management, 8(1), 37–51.CrossRefGoogle Scholar
  30. Fish 4 Ever, Fish 4 Ever Ethical Policy,, 1 June 2013.
  31. Forstater, M., MacGillivray, A., & Raynard, P. (2006). Responsible Trade and Market Access: Opportunities or Obstacles for SMEs in Developing Countries? Vienna: UNIDO.Google Scholar
  32. Freeman, R., & Velamuri, S. (2008). A new approach to CSR: company stakeholder responsibility.Google Scholar
  33. Friedman, M. (2007). The social responsibility of business is to increase its profits. Corporate Ethics and Corporate Governance, 173–178.Google Scholar
  34. Frooman, J. (1997). Socially irresponsible and illegal behavior and shareholder wealth. Business and Society, 36(3), 221.CrossRefGoogle Scholar
  35. GAP, Social Responsibility,, 1 June 2013.
  36. Garriga, E., & Melé, D. (2004). Corporate social responsibility theories: Mapping the territory. Journal of Business Ethics, 53(1), 51–71.CrossRefGoogle Scholar
  37. Gill, A. (2008). Corporate governance as social responsibility: A research agenda. Berkeley Journal of International Law, 26(452), 462.Google Scholar
  38. Goyder, M., & Desmond, P. (2000). Is Ethical Sourcing Simply a Question of Good-Supply Chain Management? Visions of Ethical Sourcing (Financial Times Prentice Hall, London).Google Scholar
  39. Griffin, J. J., & Mahon, J. F. (1997). The corporate social performance and corporate financial performance debate. Business and Society, 36(1), 5.CrossRefGoogle Scholar
  40. Gunningham, N., Grabosky, P., & Sinclair, D. (1998). Smart regulation: Designing environmental policy. USA: Oxford University Press.Google Scholar
  41. Gawel, A. (2006). Corporate social responsibility: standards and objectives driving corporate initiatives. Pollution Probe.Google Scholar
  42. Hart, O. (1995a). Corporate governance: Some theory and implications. The Economic Journal, 105(430), 678–689.CrossRefGoogle Scholar
  43. Hart, S. (1995b). A natural-resource-based view of the firm. Academy of Management Review, 20(4), 986–1014.Google Scholar
  44. Henderson, D. (2002). Misguided virtues: False notions of corporate social responsibility. London: Institute of Economic Affairs.Google Scholar
  45. Holliday, C., Schmidheiny, S., & Watts, P. (2002). Walking the talk: The business case for sustainable development. San Francisco: Berrett-Koehler Publishers.Google Scholar
  46. Holliday Jr, C. O., Schmidheiny, S., & Watts, P. (2002). Walking the talk: The business case for sustainable development. Berrett-Koehler Pub.Google Scholar
  47. Hopkins, M. Corporate Social Responsibility: An Issues Paper (May 2004). Available at SSRN: or
  48. Hu Xiaoyong, Corporate Codes of Conduct and Labour Related Corporate Social Responsibility: Analyzing the Self Regulatory Mechanisms of Multinational Enterprises and Their Impacts to Developing Countries (2006) The Japan Institute for Labour Policy and Training,, 23 July 2010.
  49. ISO, Standards,, 1 June 2013.
  50. Jamali, D. (2008). A stakeholder approach to corporate social responsibility: A fresh perspective into theory and practice. Journal of Business Ethics, 82(1), 213–231.CrossRefGoogle Scholar
  51. Juholin, E. (2004). For business or the good of all? A Finnish approach to corporate social responsibility. Corporate Governance, 4(3), 20–31.CrossRefGoogle Scholar
  52. Post, J. E., Lawrence, A. T., & Weber, J. (2002), Business and society: Corporate strategy, public policy, and ethics with powerweb. New York: Mcgraw-Hill College.Google Scholar
  53. Just good Business. (2008). The Economist, 17 January 2008.Google Scholar
  54. Kakabadse, N. K., Rozuel, C., & Lee-Davies, L. (2005). Corporate social responsibility and stakeholder approach: A conceptual review. International Journal of Business Governance and Ethics, 1(4), 277–302.CrossRefGoogle Scholar
  55. Kraft, K. L., & Hage, J. (1990). Strategy, social responsibility and implementation. Journal of Business Ethics, 9(1), 11-19.Google Scholar
  56. Kemp, V. (1986). To Whose profit? Building a sustainable business case. Surrey: WWF-UK.Google Scholar
  57. Levis, J. (2006). Adoption of corporate social responsibility codes by multinational companies. Journal of Asian Economics, 17(1), 50-55.Google Scholar
  58. Lobel, O. (2004). Setting the agenda for new governance research. Minnesota Law Review, 89, 498.Google Scholar
  59. Locke, R., & Romis, M. (2006). Beyond corporate codes of conduct: Work organization and labor standards in two Mexican garment factories. Corporate Social Responsibility Initiative. Google Scholar
  60. Lobel, O. (2005) Interlocking regulatory and industrial relations: The governance of workplace safety.Google Scholar
  61. Margolis, J., & Walsh, J. (2003). Misery loves companies: Rethinking social initiatives by business. Administrative Science Quarterly, 48(2), 268–305.CrossRefGoogle Scholar
  62. Marshall, A. (1920). Principles of economics: An introductory volume (8th ed.). London: Macmillan.Google Scholar
  63. Mason, T. (1996). Getting your suppliers on the team. Logistics Focus, 4, 10–12.Google Scholar
  64. Matten, D., & Moon, J. (2007). Pan-European approach. A conceptual framework for understanding CSR. Corporate Ethics and Corporate Governance, 179–199.Google Scholar
  65. Mazurkiewicz, P. (2006). CSR implementation guide non-legislative options for the Polish government: WB development communication division and WB ECCU7 Office, The World Bank.Google Scholar
  66. McAdam, R., & Leonard, D. (2003). Corporate social responsibility in a total quality management context: opportunities for sustainable growth. Corporate Governance, 3(4), 36–45.CrossRefGoogle Scholar
  67. McBarnet, D., Voiculescu, A., & Campbell, T. (2007). The new corporate accountability: Corporate social responsibility and the law. Cambridge: Cambridge University Press.Google Scholar
  68. McGuire, J., Sundgren, A., & Schneeweis, T. (1988). Corporate social responsibility and firm financial performance. Academy of Management Journal, 854–872.Google Scholar
  69. McWilliams, A., & Siegel, D. (2000). Corporate social responsibility and financial performance: Correlation or misspecification? Strategic Management Journal, 21(5), 603–609.CrossRefGoogle Scholar
  70. Mikdashi, T., & Leal, W. (2005). Experiences on corporate social responsibility (CSR) implementation in Lebanon: A causal recursive system. International Journal of Environment and Sustainable Development, 4(2), 181–192.CrossRefGoogle Scholar
  71. Mitchell, L. (2007) The board as a path toward corporate social responsibility.Google Scholar
  72. Mitchell, L. E. (2007b). The Board as a path toward corporate social responsibility. In D. McBarnet, A. Voiculescu, & T. Campbell (Eds.), The new corporate accountability. Cambridge: Cambridge University Press.Google Scholar
  73. Mitchell, L., & Diamond, M. (2004). Corporations, a contemporary approach. Durham: Carolina Academic Press.Google Scholar
  74. Morgan, B. (2003). The economization of politics: Meta-regulation as a form of nonjudicial legality. Social and Legal Studies, 12(4).Google Scholar
  75. Moon, J., & Vogel, D. (2008). Corporate social responsibility, government and civil society. The Oxford handbook of corporate social responsibility, 303-326.Google Scholar
  76. Mustow, S. E. (2006). Procurement of ethical construction products. Proceedings of the ICE Engineering Sustainability, 159(1), 11-21.Google Scholar
  77. Oppenheim, J. M., Bielak, D. and Bonini, S. M. (2007). CEOs on strategy and social issues. The McKinsey Quarterly, 4, 1-8.Google Scholar
  78. Orlitzky, M., Schmidt, F., & Rynes, S. (2003). Corporate social and financial performance: A meta-analysis. Studies, 24(3), 403–441.Google Scholar
  79. Palzer, C., & Scheuer, A. (2003). Self-regulation, Co-regulation. Public-regulation Promote or Protect, 165, 168.Google Scholar
  80. Parker, C. (2002). The open corporation: effective self-regulation and democracy. Cambridge: Cambridge University Press.Google Scholar
  81. Parker, C. (2007). Meta-regulation: legal accountability for corporate social responsibility? In D. McBarnet, A. Voiculescu & T. Campbell (Eds.), The New Corporate Accountability: Corporate Social Responsibility and the Law. Cambridge: Cambridge University Press.Google Scholar
  82. Pava, M. L., & Krausz, J. (1996). The association between corporate social-responsibility and financial performance: The paradox of social cost. Journal of Business Ethics, 15(3), 321-357.Google Scholar
  83. Peteraf, M. (1993). The cornerstones of competitive advantage: A resource-based view. Strategic Management Journal, 14(3), 179–191.CrossRefGoogle Scholar
  84. Porter, M., & Linde, C. (1999). Green and competitive: Ending the stalemate. Journal of Business Administration and Policy Analysis.Google Scholar
  85. Porter, M. E. (1987). From competitive advantage to corporate strategy (Vol. 59). Cambridge, MA: Harvard Business Review.Google Scholar
  86. Porter, M., & Van der Linde, C. (1995). Toward a new conception of the environment-competitiveness relationship. The Journal of Economic Perspectives, 9(4), 97–118.CrossRefGoogle Scholar
  87. Post, J., Preston, L., & Sachs, S. (2002). Managing the extended enterprise. California Management Review, 45(1), 6–28.CrossRefGoogle Scholar
  88. Prahalad, C. K. (2004). The blinders of dominant logic. Long Range Planning, 37(2), 171- 179.Google Scholar
  89. Preston, L., & O’Bannon, D. (1997). The corporate social-financial performance relationship. Business and Society, 36(4), 419.CrossRefGoogle Scholar
  90. Rahim, M. M., & Alam, S. (2013). Convergence of Corporate Social Responsibility and Corporate Governance in Weak Economies: The case of Bangladesh. Journal of Business Ethics, 1-14.Google Scholar
  91. Rahim, M. M., & Wisuttisak, P. (2013). Corporate Social Responsibility–Oriented Compliances and SMEs Access to Global Market: Evidence from Bangladesh. Journal of Asia-Pacific Business, 14(1), 58-83.Google Scholar
  92. Rogers, M., & Ryan, R. (2001). The triple bottom line for sustainable community development. Local Environment, 6(3), 279–289.CrossRefGoogle Scholar
  93. Roman, R. M., Hayibor, S., & Agle, B. R. (1999). The relationship between social and financial performance. Business and Society, 38(1), 109.CrossRefGoogle Scholar
  94. Samuelson, P. A. (1971). Love that corporation. Mountain Bell Magazine.Google Scholar
  95. Schmidheiny, S. (1992). Changing Course: Executive Summary: a Global Business Perspective on Development and the Environment. MIT press.Google Scholar
  96. Services, Parliamentary Joint Committee on Corporations and Financial Services. (2006). Corporate responsibility : managing risk and creating value. Commonwealth of Australia.Google Scholar
  97. Shleifer, A., & Vishny, R. (1997a). A survey of corporate governance. Journal of Finance, 52(2), 737–783.CrossRefGoogle Scholar
  98. Shleifer, A., & Vishny, R. W. (1997b). A survey of corporate governance. Journal of Finance, 52(2), 737–783.CrossRefGoogle Scholar
  99. Shrivastava, P. (1996). Greening business: Profiting the corporation and the environment. OH: Thomson Executive Press Cincinnati.Google Scholar
  100. Smith, A. (1759). The Theory of Moral sentiments.Google Scholar
  101. Standards Australia, Standards and Standardisation, Focus Press, Sydney, 2002.Google Scholar
  102. Stanwick, P. A., & Stanwick, S. D. (1998). The relationship between corporate social performance, and organizational size, financial performance, and environmental performance: An empirical examination. Journal of business ethics, 17(2), 195-204.Google Scholar
  103. Stengel, R. (2009). The responsibility revolution. Time, September, 21, 24-27.Google Scholar
  104. Strategy, C. (2002). The Business case for sustainable development: Making a difference towards the Earth summit 2002 and beyond. Corporate Environmental Strategy, 9(3), 226–235.CrossRefGoogle Scholar
  105. Sustainability Initiatives, ‘Retail’. Available at 5 June 2013
  106. Swift, T., Zadek, S., & Institute of Social and Ethical Accountability with the Copenhagen Centre. (2002). Corporate responsibility and the competitive advantage of nations: The Copenhagen Centre.Google Scholar
  107. Thévenet, M. (2003). Viewpoint: Global responsibility and individual exemplarity. Corporate Governance, 3(3), 114–125.CrossRefGoogle Scholar
  108. Tung, C. (2006). The legal implications of CSR: Changing landscape of liability, from
  109. Turnbull, S. (1997). Corporate governance: its scope, concerns and theories. Corporate Governance, 5(4), 180–205.CrossRefGoogle Scholar
  110. UNCTAD, Promoting standards for responsible investment in value chains. A report to the high-level development working group, Paris, September 2011Google Scholar
  111. Utting, P. (2005). Rethinking business regulation. From Self-Regulation to Social Control, UNRISD.Google Scholar
  112. Valor, C. (2005). Corporate social responsibility and corporate citizenship: Towards corporate accountability. Business and Society Review, 110(2), 191–212.CrossRefGoogle Scholar
  113. Van Marrewijk, M. (2003). Concepts and definitions of CSR and corporate sustainability: Between agency and communion. Journal of Business Ethics, 44(2), 95–105.CrossRefGoogle Scholar
  114. Vance, S. (1975). Are socially responsible firms good investment risk? Management Review, 64, 18–24.Google Scholar
  115. Vogel, D. (2006). The market for virtue: The potential and limits of corporate social responsibility. Brookings Inst Press.Google Scholar
  116. Vries, H. J. D. (1999). Standards for the nation: Analysis of national standardization organizations. Droit: Universite Rotterdam: 1999.Google Scholar
  117. Waddock, S., & Graves, S. (1997). The corporate social performance-financial performance link. Strategic Management Journal, 18(4), 303–319.CrossRefGoogle Scholar
  118. Weiser, J., & Zadek, S. (2000). Conversations with disbelievers: Persuading companies to address social challenges. Ford Foundation.Google Scholar
  119. Windsor, D. (2006). Corporate social responsibility: Three key approaches. Journal of Management Studies, 43(1), 93–114.CrossRefGoogle Scholar
  120. When, W., & Respond, H. C. (2004). Doing better at doing good. California management review, 47(1), 10.Google Scholar
  121. Wood, D. (1991). Corporate social performance revisited. Academy of Management Review, 16(4), 691–718.Google Scholar
  122. World Business Council for Sustainable Development. (1999). Corporate social responsibility: Meeting changing expectations. World Business Council for Sustainable Development.Google Scholar
  123. Zadek, S. (1999). Stalking sustainability. Greener Management International, 21–31.Google Scholar

Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  1. 1.Queensland University of TechnologyQueenslandAustralia

Personalised recommendations