An Analysis of Corporate Governance in the Context of Corporate Social Responsibility

Making money or becoming wealthy is the sole objective of every business, and the size or quantity of the profit is the sole determinant of how well the firm performs. On the other side, business ethics should ensure that individuals do not neglect their own needs and safety in the pursuit of profit. According to Mahatma Gandhi, business and industry should be conducted for the greater interest of the community, and businesses should view society as a good friend. This indicates that a businessman should generate revenue and spend it for the greater welfare of the community. Along with producing money, they should conduct their businesses for the greater benefit of society, with the greater good of society being their primary objective while making money. But a lot of companies especially multinational corporations (MNC) have violated this notion of corporate governance by overlooking corporate social responsibilities (CSR) and basic human rights in underdeveloped and developing countries. It is claimed that in order to enable economic growth, third world governments are hesitant to apply human rights due diligence standards mandated by international legal mechanisms for corporations. Therefore, this paper will look into the concept of corporate governance in relation to corporate social responsibilities and suggest how corporates can be made more accountable to its stakeholders and the society.