From CSR to CRI4 and Beyond

Question 1

What does the transition from CSR to GRI4 signify in CG?

Answer 1

Signifies a move towards more standardized and accountable reporting on corporate social and environmental impacts, focusing on measurable and comparable metrics.

Question 2

How does ESG influence modern corporate governance practices?

Answer 2

ESG frameworks integrate environmental, social, and governance factors into corporate decision-making, aiming to align business operations with broader societal goals and sustainable development.

Question 3

Implications of shift from CSR to GRI4 for Agency Theory?

Answer 3

Traditionally focused on the conflicts between shareholders and management, now increasingly considering how broader stakeholder interests can be integrated.

Question 4

Implications of shift from CSR to GRI4 for Stakeholder Theory?

Answer 4

Gains prominence as firms are encouraged to consider a wider array of impacts and relationships beyond shareholder value maximization.

Question 5

What are the critical limits of stakeholder engagement in CG?

Answer 5

• Superficial compliance
• Greenwashing
• Limitations of ESG: ESG Metrics can be inconsistent and fail to capture full complexity of corporate impacts on society and the environment.
• Institutional Constraints: Regulatory/ market structures limit the effectiveness of governance reforms intended to enhance corporate responsibility.

Question 6

How does modern CG critique Friedman’s doctrine?

Answer 6

Modern governance critiques Friedman’s focus solely on shareholder value, advocating for a more integrated approach that considers environmental and social impacts as central to corporate responsibility and long-term sustainability.