Chapter 3: Corporate Social Responsibility

CSR is defined by the European Commission as ‘the responsibility of enterprises for their impact on society’. It can be seen as one of the more controversial areas in relation to corporate disclosures because it goes to the heart of the debate on whether companies exist purely for generating shareholders’ profits or whether society is entitled to expect organisations to act in the general public interest, especially on issues such as the environment and social change.

In October 2018, COSO and the World Business Council for Sustainable Development (WBCSD) released a Guidance for Applying ERM to ESG related risks.

The guidance for applying ERM to ESG-related risks appeared in the context of an evolving landscape of ESG-related risks, which can impact the profitability, success and even survival of a variety of entities.