ROLE OF SHAREHOLDER AND CORPORATE SOCIAL RESPONSIBILITY

Abstract

"Corporate Social Responsibility" means, corporate conscience, corporate citizenship or responsible business.it is a form of corporate self-regulation integrated into a business model. CSR policy functions as a self-regulatory mechanism whereby a business monitors and guarantees its active obedience with the spirit of the law, ethical values and national or international standards. With some models, a firm's solicitation of CSR goes past compliance and statutory necessities, which engages in "actions that appear to further some social good, beyond the welfares of the firm and that which is required by law" The binary choice between 'complying' with the law and 'going beyond' the law must be qualified with some tone. In many areas such as environmental or labor regulations, employers can select to comply with the law, to go beyond the law, but they can also choose to not comply with the law, such as when they intentionally ignore gender equality or the mandate to hire restricted workers. There must be credit that many so-called 'hard' laws are also 'weak' laws, weak in the sense that they are poorly enforced, with no or little control and/or no or few sanctions in case of non-compliance. 'Weak' law must not be muddled with soft law.  Now days CSR and shareholder value is the metrics used to measure results. Shareholder value has an unambiguous measure: the share price of a company's stock plus dividends received. In addition, SEC regulations and GAAP and IAS accounting rules proscribe what financial information companies must disclose and how they must disclose it, and comparable requirements exist globally. Revenue, profit and market capitalization are universally understood and clear measures of where a company stands. On the CSR side, no singular goal comparable to increasing shareholder value exists, primarily for two reasons. First, CSR comprises a wide range of corporate decisions and activities. Consider the following:

• Paying a "living wage" rather than market wage.
• Obeying environmental laws.
• Campaigns to reduce employee obesity.
• Corporate philanthropy.
• Producing quality products