Does corporate social responsibility need to be regulated to grant greater protection to the environment and society due to the shortcomings of the current framework?

Abstract

Companies have a significant impact on the environment and society. The shortcomings of corporate social responsibility (CSR) have created a need for regulations protecting the environment and society. However, due to voluntary CSR and the drawbacks of section 172 of the Companies Act 2006, companies have been lax in taking measures to protect the environment and society. Using the doctrinal method, this paper discusses the limitations of the current CSR framework and suggests an appropriate approach for CSR governance. It concludes that the current CSR framework is ineffective and has led to environmental and societal problems that are difficult to solve without regulation. It recommends meta-regulation as the best way to regulate CSR, allowing companies to design their own governance system and granting states the right to supervise them.