Abstract
The debate over corporate objectives and how companies deal with amplified existing societal inequalities and vulnerabilities has received increasing attention in recent years, especially in the wake of the COVID-19 crisis. The pandemic encouraged companies and policy makers to consider ways to develop a more enabling institutional environment, not only to tackle the ongoing crisis but also to prepare for similar future tests. Against this backdrop, the purpose of this paper is to focus on the significance and effectiveness of ex ante corporate social responsibility (CSR) law approaches in tackling the challenges brought by the pandemic. We investigate the uniqueness of the sustainable development challenges in the era of the pandemic, and introduce “corporate social competence” as a compliance principle in response to the need for forward-looking approaches to risk management and strategic planning. We use two ex ante legislative approaches in company law, namely mandatory CSR policy and legally recognised inclusive business models, as examples to illuminate the contribution of company law to navigate the pandemic beyond philanthropic CSR actions.
Highlights
Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations
The question of whether companies should maximise shareholder value or stakeholder welfare has been debated since the 1970s [3], and has seen renewed interest recently in the wake of the current COVID-19 pandemic
We argue that company law will contribute to mandatory corporate social responsibility (CSR) policies, establishing a reference framework of corporate strategy and vigilance planning as measures to achieve sustainable recovery
Summary
Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. The question of whether companies should maximise shareholder value or stakeholder welfare has been debated since the 1970s [3], and has seen renewed interest recently in the wake of the current COVID-19 pandemic. As a result of COVID-19, businesses are facing various challenges such as greater interdependencies, hidden vulnerabilities, and health and safety hazards for both employees and consumers. The pandemic has amplified existing societal inequalities and pushed them to the forefront of public consciousness [4]
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