The Legal Basis of CSR

Corporate social responsibility is defined differently depending on the academic faculty and interest of the person defining it. Business faculties/organizations see it as the voluntary action of addressing public interest, conducting ethical business, and adhering to moral norms, hoping to increase profit or adding value for its members. The paper explores how it treats moral value, how ethical behavior and public interest are treated by English legal system, and whether it is possible to enforce such rules and norms through the English court. The essay will also explore which elements are necessary to qualify as a voluntary action. Corporate law within the English legal system will be considered throughout the essay when investigating CSR, as it is the origin of the common law system. Corporate law and development in English law and court decisions in this area provide an influence to many other countries, such as the USA, Australia, India, and so on. Therefore, this paper is in the contextual interest of a global audience. Many other common law adopting societies can refer to this paper when considering how they could apply CSR in their own legal systems. In addition, other countries that do not adopt a common law system, such as ones that adopt a civil law system, may still consider this paper to investigate the application of CSR under their own jurisdictions. The essay explores the rights-based approach of the English system, which enforces a duty of respect for others’ rights as well as its liabilities. The investigation then examines such basis of rights within corporate and business law. Corporate law also accepts the general element of voluntary action and does not allow personal benefit, or benefit for the person within the actor’s proximity or work done under legal obligations. As the UK constitution follows a rights-based approach, corporate and business law protects all relevant rights of the person and community on an issue by issue basis and enforces both criminal and civil liability upon a corporation, as well as on its drivers. The law controls all behaviors of corporate business in England by imposing duty and liability upon it. Nothing is voluntary for businesses regarding their relationships with a person and the society related to them. Thus, the paper aims to clarify how CSR needs to be considered by a business in common law countries.