1.3.1 Legal aspects of CSR

The phenomenon of CSR has presented itself as an interesting topic for academic research in multiple disciplines: business administration, accounting, public governance and development studies, social studies, law and human rights studies. It has triggered the author to start researching this subject matter.

The study contained in this book concentrates first and foremost on the legal aspects of CSR but also deals with the theme in the broader perspective of assessing international developments in regulation and best practices in corporate conduct. It elaborates on developments in this field during the decade 2000-2010.

Regarding the legal aspects of CSR, certain recurring patterns can be discerned: new forms of regulation have emerged to assist companies in formulating new substantive standards for conducting business in a responsible way. The implementation of new responsibilities requires an extra effort by companies' boards as well as by the employees throughout the organisation. It has been suggested to employ due diligence' to create awareness concerning potential irresponsible impacts of business activities, thereby instituting a methodology aimed at prevention. From the same perspective, the issue of how to establish (legal) accountability for corporate misconduct receives generous attention. Furthermore, legislation and the accounting profession have moved companies forward in creating transparency concerning corporate conduct, also concerning extra-financial aspects of doing business. In addition, consumers have challenged companies to provide information to consumers about the characteristics and production methods of goods.1 Another question that surfaced was how to embed the participation of new stakeholders in the corporate decision-making process. In this respect, stakeholder engagement and mediation appear to play an important role. It is also fascinating to see that the cooperation between companies and non-usual suspects such as international organisations or NGOs has triggered the appearance of innovative business models. MSIs which define responsible business standards and monitor the implementation thereof are an example hereof. Another interesting new model can be found in MDG-PPPs. Furthermore, innovative market approaches have resulted in the creation of new markets targeting nature conservation.