THE EMERGENCE OF CORPORATE SOCIAL RESPONSIBILITY—ISSUES FOR THE AUSTRALIAN OIL AND GAS SECTOR
The APPEA Journal
43(1) 717 - 728
Published: 2003
Abstract
Recent times have seen a rise in expectations in companies’ accountability as good corporate citizens. This trend has seen an increased emphasis on corporate governance and director liability. Further disclosure is now required and/or expected against a number of measures including environmental adherence, community activities and employee relations.At the same time companies are now subject to heightened shareholder activism as well as the growth of ethical investment funds which require companies to meet certain standards of corporate behaviour before they will invest.
With the recent collapse of several major Australian companies and the consequent scrutiny of their corporate behaviour, and the revelation of instances of massive levels of corporate impropriety in the US, the above trend can be expected to grow. This paper discusses:
the main platforms of corporate responsibility currently on the public agenda including:
good corporate governance and director liability;
environmental responsibility (sustainability rather than compliance); and
other areas of social responsibility including treatment of employees and preservation of employee entitlements;
the regulatory issues surrounding corporate responsibility, in particular under the Corporations Act;
the risks and rewards of engaging in or ignoring this process. The risks might include potential director liability and public relations issues. The rewards may include access to additional public and private capital; and
issues in this debate of particular relevance to the upstream oil and gas sector.
https://doi.org/10.1071/AJ02042
© CSIRO 2003
