Abstract

This research abstract explores the intricate relationship between Corporate Social Responsibility (CSR) and good corporate governance, arguing that CSR is not merely a philanthropic add-on but an integral component of a robust governance framework. The traditional view of corporate governance, which primarily focuses on the relationship between management, the board of directors, and shareholders, is expanding to include a broader range of stakeholders, including employees, customers, suppliers, and the community. This paradigm shift highlights the growing importance of CSR as a mechanism for addressing the interests of these diverse groups, thereby fostering trust and long- term sustainability. We posit that integrating CSR into corporate strategy strengthens governance by enhancing transparency, accountability, and ethical conduct. CSR initiatives, such as fair labor practices, environmental sustainability efforts, and community engagement, necessitate clear reporting and open communication, which are fundamental principles of good governance. Furthermore, a strong commitment to CSR can mitigate reputational risks and regulatory scrutiny, demonstrating a company’s proactive approach to responsible business practices. By adopting a stakeholder-centric approach, companies can better align their business objectives with societal values, leading to improved decision-making and reduced conflicts of interest. The paper utilizes a mixed-methods approach, combining a literature review of theoretical frameworks and empirical studies with a case study analysis of multinational corporations known for their exemplary CSR and governance practices. The findings suggest a strong positive correlation between a company’s CSR performance and its governance quality. We conclude that companies that embed CSR into their core business model are better equipped to navigate the complexities of the modern business environment, ultimately creating a more resilient and responsible organization that benefits all stakeholders. This research contributes to the ongoing discourse on corporate responsibility and offers practical implications for policymakers, corporate leaders, and academics. CSR and Governance are Interlinked: The research highlights that CSR is not a separate function but an essential part of good corporate governance. Benefits of Integration: Integrating CSR improves transparency, accountability, and ethical conduct within a company. Stakeholder Focus: A strong CSR program extends the focus of governance from just shareholders to all stakeholders, including employees, customers, and the community. Methodology: The study uses a mixed-methods approach, including a literature review and case studies, to show the positive link between CSR and governance quality.

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