The Company Directors' Perspective of Corporate Social Responsibility

Abstract

The role of a company director is, as a member of the Board of Directors, to create value for an organisation through both performance (direction) and conformance (control). Performance relates to setting the mission, values, and strategic direction of the organisation; a socially responsible director considers the impact of these on both stakeholders and the natural environment. Conformance relates firstly to accountability through setting internal policy and procedures, and adherence to both internal and external (such as laws) rules and procedures, and secondly to transparency through reporting to stakeholders; a socially responsible director supports high levels of each. Company directors realise their role through decision-making, and so it is essential to examine the impact of their experience, demographic characteristics, and personal values on their decision-making processes. Directors have access to a wide range of information and resources on CSR and its relationship to corporate governance, including legislation and case law, guidelines, reports, professional associations, corporate constitutions and codes of conduct, and professional and academic literature. An overview of the place of CSR in company directors' decision making is given through reference to empirical research.