Abstract
The establishment of integrated corporate social responsibility principles, the growing complexity and importance of business/stakeholder relationships, and the elimination of space and time barriers to the circulation of information and capital change the corporate governance approach of listed companies. This situation attenuates the business approach, which has characterised firms with wide ownership dispersion (outsider systems) and those with concentrated ownership or control (insider systems) for a long time. This discussion article aims to be a theoretical contribution, which investigates the relationship between integrated CSR and investors according to a management model able to create sustainable value and optimise meeting the interests of shareholders and other stakeholders. Corporate social responsibility and an orientation towards sustainability facilitate the reduction of business risk and the creation of value in the medium-to long-term, regardless of the ownership structure of companies and the characteristics of risk capital markets.
Highlights
The assertion of concepts such as corporate social responsibility (CSR) and sustainability, together with the valorisation of the stakeholder perspective (Freeman et al, 2010; Harrison et al, 2015; Schaltegger et al, 2017) have affirmed a new approach to the role of companies in society
Globalisation and the emergence of the concept of integrated corporate social responsibility have undoubtedly underlined the need for greater convergence between corporate governance systems, the limitations of over-focusing on the shareholder view, and the change in variables that influence the attraction of capital
The network of relations focuses on the effectiveness, flexibility, and convergence of corporate governance principles in the various national realities increasing the opportunities for competition and benchmarking among firms
Summary
The assertion of concepts such as corporate social responsibility (CSR) and sustainability, together with the valorisation of the stakeholder perspective (Freeman et al, 2010; Harrison et al, 2015; Schaltegger et al, 2017) have affirmed a new approach to the role of companies in society. The management of stakeholder relationships becomes a source of competitive advantage in globalised and dynamic capital markets (Hillman & Keim, 2001; Brondoni, 2003; Salvioni & Gennari, 2016) and sustainable value creation increases the capacity for consensus and attraction of resources The effectiveness of such relations with stakeholders depends both on the company’s enhancement of connections among economic, competitive and socioenvironmental variables to be included in the strategies, according to an integrated design, and on the company’s systems of accountability and transparent communication for generating consensus and collaborative responses from stakeholders (Bosetti, 2015). When a board of directors redefines corporate priorities and goals according to the principles of integrated CSR, it tends to overcome some traditional structural differences between outsider and insider corporate governance systems and to promote convergence pathways
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