It can be seen as the whole system of rules, principles and procedures that regulate the structure and operation of the governing bodies of a company. Specifically, it establishes the relationships between the board of directors, the shareholders and the rest of the interested parties, and stipulates the rules that govern the decision-making process about the company for the generation of value.
Published in Chapter:
Is Corporate Social Responsibility Really Able to Create Long-Term Sustainability Value?
Manuel Moreno (University of Alcalá, Spain), Elena Mañas-Alcón (University of Alcalá, Spain), Oscar Montes-Pineda (University of Alcalá, Spain), and Beatriz Fernández-Olit (University of Alcalá, Spain)
Copyright: © 2022
|Pages: 23
DOI: 10.4018/978-1-7998-8501-6.ch010
Abstract
This chapter analyzes the academic debate regarding the need to adopt a long-term vision of CSR strategies. It's based on the premise that short run is the dominant approach in financial markets, and this situation could be negatively conditioning the long-term sustainability value creation. New social values may be requesting different management decisions from companies, prioritizing long-term over short term results. A thorough literature review has been done across specialized journals, international reports, and key legislation, trying to determine and model the elements facilitating this sustainable value creation. It shows the alignment needed between CEO and their shareholders within the framework of corporate governance to create long-term value within CSR. There are signs of a possible financial over-performance of companies that strategically create a shared value with stakeholders based on environmental, social, and governance objectives, selected due to their materiality. A model is proposed to consider a long-term approach creating sustainable value in organizations.