Corporate social responsibility, the business judgment rule and human rights in Australia - warm inner glow or warming the globe?

Abstract

Corporate social responsibility ('CSR') has had a renaissance in corporate governance. CSR has been regarded more often as a commercial law concept which has been readily applied in the commercial boardroom but has received little judicial consideration in the courtroom. Recent corporate reform in Australia in relation to directors’ duties, specifically the business judgment rule, has provided a ‘safe harbour’ corporate governance framework for the exercise of directors’ duties generally, including, and perhaps unexpectedly, in relation to CSR-related activities. More broadly, the concepts which underpin CSR are also consistent with contemporary human rights developments. Importantly, CSR also has a potential role to play in relation to corporate attitudes towards climate change, provided it is supported by active decision-making by directors of both transnational corporations and small to medium enterprises.