Corporate Governance and Social Responsibility in the Economy of Kosovo

Abstract

Corporate governance is now a mainstream issue of concern in the business world. According to Igalens and Point (2009), which define corporate social responsbility (CSR) reporting appears as to be one of the most important new worldwide governance practices, as CSR reporting can be regarded as reflecting the evolution of companies governance systems from a shareholder perspective to reflect broader stakeholders concerns. The best corporate governance constitutes an essential factor for the survival of large corporations and enterprises or businesses in any country, but more important for countries in transition. The objective of this paper is to explore the development of corporate governance practices, their legal framework and specifically in Kosovo. An important place in this paper is the role and corporate social responsibility in society, governance based on the best models possible. Elaborating important aspects of corporate social responsibility (CSR), this concept define increasingly focused on corporate governance as a vehicle for incorporating social and environmental concerns and they're considered as arguments into the business decision-making process, benefiting not only financial investors but also employees, consumers, communities and other stakeholder. Currently, corporate governance is being linked more and more with business practices and public policies that are stakeholder-friendly. At the end of this paper will also explain the current situation analysis of how corporate governance and their social responsibilities in a transition economy such as Kosovo.