Corporate governance refers to the system of rules, practices, and processes by which a company is directed and controlled. CSR, on the other hand, encompasses a company's initiatives to assess and take responsibility for its impact on society and the environment.
The practices that company adopt to streamline this management can be termed as best corporate governance. Such practices are governed by principles of transparency, fairness, responsibility and risk management. Corporate Social Responsibility is the consciousness of a company to give back to the society.
Both Corporate Governance and CSR
focus on the ethical practices in the business and the responsiveness of an organisation to its stakeholders and the environment in which it operates. Corporate Governance and CSR results into better image of an organisation and directly affects the performance of an organisation.
The point here is that companies that practice good corporate governance are also those that are socially and environmentally responsible. Being a good corporate citizen means that companies have to be internally well governed and externally responsible. In other words, CSR and corporate governance are two sides of the same coin.
Corporate social responsibility (CSR) refers to strategies that companies put into action as part of corporate governance that are designed to ensure the company’s operations are ethical and beneficial for society.
Corporate Social Responsibility is an extended model of corporate governance. It is about how companies manage the business processes to produce an overall positive impact on the society. It is the responsibility of corporations to go above and beyond what the law required them to do.
