Corporate social responsibility and how the corporate sector should behave: A case study of New Zealand
Research Handbook on Corporate Board Decision-Making
Edward Elgar Publishing
School of Business and Law
The recent surge in corporate social irresponsibility (CSiR) incidents, such as Enron, WorldCom, Volkswagen (VW), British Petroleum (BP) and Wells Fargo, have highlighted the importance of corporate social responsibility (CSR) (Voegtlin and Pless, 2014) – so much so that many now consider it a necessity for an organisation to both define its role in society and adhere to social, ethical, legal and responsible standards (Schembera, 2018). With the increasingly serious growth of CSiR issues in recent years, the effective implementation of CSR measures has also become a global policy issue (Farooq et al., 2021a; Farooq and De Villiers, 2019; Jain and Zaman, 2020; Pisani et al., 2017; Zaman et al., 2022). For example, legal authorities have mandated or introduced stakeholders’ interests in the managerial decision-making process (Adams and Zutshi, 2004); the New Zealand Stock Exchange (NZX), for example, recently revised its Corporate Governance (CG) Code (2017) to encourage CSR practices among NZX-listed firms. Likewise, the Australian Securities Exchange (ASX) (2014) and Singapore Exchange Limited (SGX) (2016) CG principles on sustainability reporting; Bombay Stock Exchange’s (BSE) mandatory environmental, social and governance (ESG) disclosure requirement; and the USA Dodd–Frank Wall Street Reform and Consumer Protection Act, 2010 – all have created a new set of practices and requirements to manage business risks.