This book attempts to clarify the social responsibility of business along global supply chains beyond mere profit maximisation as famously argued by Milton Friedman. In this context, corporate social responsibility (CSR) is understood as the responsibility of business to align corporate policies and procedures with commonly accepted ethical standards and to respect stakeholders’ rights in day-to-day business. As such, CSR is by no means voluntary but constitutes a fundamental prerequisite for companies to keep their license to operate for sustainaable growth and survival in an ever more competitive global market. Inspired by Germany' recent efforts to regulate global supply chains, Germany's Due Diligence Act is analysed in terms of its potential and limitations to promote responsible business practices and complemented by alternative approaches for more co-responsibility of business globally.
Author(s): Lilli Carlotta Sophie Maurice
Series: BestMasters
Publisher: Springer Gabler
Year: 2022
Language: English
Pages: 76
City: Wiesbaden
Contents
Abbreviations
1 Introduction
2 Theoretical Foundations
2.1 Corporate Social Responsibility (CSR) Today
2.2 Critique of Milton Friedman
2.2.1 Normative Expectations
2.2.2 State Regulation
2.2.3 Incomplete Contracts
2.2.4 Trust
2.3 Economic Theory of CSR / Corporate Co-Responsibility
2.3.1 Not for profit CSR
2.3.2 Strategic / for profit CSR
2.3.3 CSR as regulatory strategy
2.4 Limitations of CSR
3 Analysis
3.1 Statutory Regulation of Global Supply Chains
3.1.1 Social and Ecological Incentives Through Regulatory Framework
3.1.2 Legal Certainty and Reduction of Litigation and Reputational Risk
3.1.3 Resilience
3.2 Germany’s Due Diligence Act
3.2.1 Scope / Companies Covered
3.2.2 Due Diligence Obligations
3.2.3 Regulatory Monitoring and Enforcement
3.2.4 Sanctions
3.2.5 Environmental Provisions
3.2.6 Competitiveness
3.2.7 Ethical Considerations
3.2.8 Responsibility Issues
3.3 Discussion and Critical Appraisal
3.3.1 Governmental Regulation
3.3.2 Not for Profit CSR
3.3.3 Strategic / for Profit CSR
3.3.4 CSR as Regulatory Strategy
4 Alternative Approaches for more Co-responsibility
4.1 Continuation of Existing Multi-stakeholder Initiatives (MSI)
4.2 Advancing International Solutions and Global Standards
4.3 Self-regulation
4.4 Sustainability Ratings and Rankings
4.5 Corporate Commitment, Culture, and Governance
4.6 Governmental Support to Developing Countries / Shared Responsibility
4.7 Supportive Business Structures
4.8 Negative List Approach
4.9 Sunset Regulation
5 Conclusion
5.1 Findings
5.2 Outlook
5.3 Limitations
Bibliography
