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Corporate responsibility

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Find sources: "Corporate responsibility" – news · newspapers · books · scholar · JSTOR (October 2020)
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Corporate responsibility is a term which has come to characterize a family of professional disciplines
intended to help a corporation stay competitive by maintaining accountability to its four main
stakeholder groups: customers, employees, shareholders, and communities.

Concept

The professional disciplines included in the corporate responsibility field include legal and financial
compliance, business ethics, corporate social responsibility, public and community affairs, investor
relations, stakeholder communications, brand management, environmental affairs, sustainability,
socially responsible investment, and corporate philanthropy.

Prevalence

Major membership organizations and media in the Corporate Responsibility industry include Business in
the Community (bitc.org.uk), WBCSD.org, CERES, National Investor Relations Institute, and Compliance
Week.

Media coverage

Business Ethics Magazine (acquired in August, 2006 by The CRO, or Corporate Responsibility Officer) has
helped to define the field with its 100 Best Corporate Citizens list, published since 1998. The Corporate
Responsibility industry, which includes all professional services purchased by for-profit and not-for-
profit companies to maintain their levels of corporate responsibility, was valued by the CRO Magazine at
$20 billion in 2005.

In the USA, the failings of corporate responsibility have been closely associated with the corporate
scandals (Enron, Tyco, Citigroup) of the 2000-2004 period and the Sarbanes–Oxley Act of 2002 which
was passed in response to these accounting scandals.[1] Section 302 of the Sarbanes–Oxley Act
specifically refers to the corporate responsibilities of the "signing officers" responsible for signing-off
financial reports and accounts.[2][3]

In the UK and Europe, the term is more generally associated with the local and Europe-wide regulations
holding companies accountable to their stakeholders.

See also

Corporate social responsibility

References

Priori, Sarbanes–Oxley Act, accessed 2 October 2020

Public Law 107–204: An Act to protect investors by improving the accuracy and reliability of corporate
disclosures made pursuant to the securities laws, and for other purposes

Sarbanes–Oxley 101, SOX Section 302: Corporate Responsibility for Financial Reports, accessed 2
October 2020

Categories: Business lawBusiness ethicsSarbanes–Oxley ActManagement cybernetics

This page was last edited on 20 March 2023, at 11:13 (UTC).

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