Today’s recommendations on corporate social responsibility (CSR) by the Parliamentary Joint Committee on Corporations and Financial Services are a win for business and the community, according to Australia’s peak professional body of directors.
Today’s recommendations on corporate social responsibility (CSR) by the Parliamentary Joint Committee on Corporations and Financial Services are a win for business and the community, according to Australia’s peak professional body of directors.
The Australian Institute of Company Directors (AICD) strongly supports the committee’s call for companies to be engaged in corporate social responsibility practices relevant to their operations and to inform shareholders and stakeholders of their contributions to community life.
AICD Chief Executive Officer Ralph Evans says directors of well run companies already consider the interests of a wide range of stakeholders when fulfilling their duties and responsibilities to their companies.
“We are pleased the committee has chosen not to impose restrictive legislation or a mandatory CSR reporting framework, which would have limited activity and imposed a substantial regulatory burden on business,” he said.
Mr Evans says Australian companies need the flexibility to choose the CSR initiatives that best suit them and their communities, without being restricted by prescriptive frameworks that deliver a ‘one size fits all’ type outcome.
“CSR is a partnership. To be effective, companies must have the ability to report their CSR activities in a way that is meaningful to their shareholders, investors and the communities in which they operate,” he said.
“Directors are required to act in the best interests of their company at all times. To be sustainable, a corporation must maintain its reputation and balance the legitimate interests not just of shareholders, but of its employees, customers, business partners and the communities and environment in which it operates."
Mr Evans says there are many examples of Australian companies implementing innovative CSR programs relevant to their operations and circumstances.
“We encourage and applaud the diversity of Australian companies’ CSR initiatives and innovation,” he said.
AICD believes CSR should be part of every companies’ risk management strategy, and as such a company’s activities should be disclosed within the existing risk reporting framework of ASX governance principles.
“Disclosure of CSR practices should be considered as part of the overall governance process,” Mr Evans said.
For media inquiries please contact:
Jenny Donnithorne, AICD, on 02 8248 6683/0400 363 916
or Rachael McCavanagh, AICD, on 02 8248 6645/0422 864686