Corporate Social Responsibility (CSR) describes what some see as a company’s obligation to be sensitive to the needs of all the stakeholders in its business operations. The principle is closely linked with the imperative of ensuring that these operations are ‘sustainable’. In other words, CSR recognises that it is necessary to take account not only of the financial and economic dimension in decision making but also the social and environmental consequences, otherwise known as ‘Sustainable Development’. A company’s stakeholders are all those who are influenced by and/or can influence a company’s decisions and actions, both locally and globally. These include, but are not limited to employees, customers, suppliers, community organisations, subsidiaries and affiliates, joint venture partners, local neighbourhoods, investors, and shareholders.
Greater transparency, a reduction in costs, an increase in efficiency and productivity, as well as improved health and safety standards on site – these are just some of the benefits accruable to corporate real estate companies and those within the construction and buildings sectors who adopt CSR and good Corporate Governance procedures.
Corporate governance is the set of processes, customs, policies, laws and institutions affecting the way a corporation is directed, administered or controlled. Corporate governance also includes the relationships among the many players involved (the stakeholders) and the goals for which the corporation is governed. The principal players are the shareholders, management and the board of directors. Other stakeholders include employees, suppliers, customers, banks and other lenders, regulators, the environment and the community at large.
Reference
FMLink Group, LLC. (2009). Corporate governance and CRE. http://www.fmlink.com
