Corporate Social Responsibilities: Alternative Perspectives About the Need to Legislate

Journal of Business Ethics · 2014 · Volume 121 · Issue 4

Abstract

This research involves a review of the submissions to a 2005/06 Australian GovernmentInquiry into Corporate Social Responsibility. The Inquiry was established to investigate whether corporate social responsibilities and accountabilities should be regulated, or left to be determined by market forces. Our results show that the business community overwhelming favour an anti-regulation approach whereby corporations should be left with the flexibility to determine their social responsibilities and associated accountabilities and ‘enlightened self-interest’ should be retained as the guiding mechanism for social responsibility initiatives. In stark contrast, the submissions from social and environmental organisations and individuals provided counter-arguments in favour of a pro-regulation view. Ultimately Government embraced the ‘free market perspective’ promoted by the business community and decided against the introduction of national legislation pertaining to corporate social responsibilities.

Keywords

Corporate social responsibility, Government inquiry, Regulation, Enlightened self-interest, Free market perspective

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