Corporate Social Responsibility - Role of Government

Interpretations of the term Corporate Social Responsibility (CSR) are many, but academics have achieved approximate consensus about what it consists of. An issue that started off as an interestand motive-based activity for businesses is becoming more commonplace and has increased in importance over time. Governments have a role to play in ensuring that corporations behave according to the rules and norms of society; corporations stand to gain from CSR activities due to its social influence and acceptance. Hence governments play an important part in supporting corporate social responsibility initiatives. Governments can legislate, foster, partner with businesses and endorse good practice in order to facilitate the development of corporate social responsibility. Business has played a significant historical role in societal development, through philanthropy, or by having a motive beyond money making. For the past half a century, there has been a call by society in general for corporations to assume responsibility beyond mere financial gains for the shareholders. This paper tends to examine the need of corporate social responsibility and the role of government in promoting it.