Business Sustainability in Asia

CHAPTER 7Social Dimension of Sustainability

1. EXECUTIVE SUMMARY

There has been growing international interest in business sustainability including corporate social responsibility (CSR), and environmental, ethical, and governance issues. Corporations have shifted their primary goals from profit-maximization to creating shared value for all stakeholders including shareholders while fulfilling their social and environmental responsibilities. Particularly, the CSR program is designed to minimize conflicts between corporations and society caused by the differences between private and social costs and benefits and to align corporate goals with those of society. CSR requires business organizations to take initiatives to advance some social good beyond their own interests and compliance with applicable regulations. This chapter presents the social dimension of sustainability performance, reporting, and assurance with a keen focus on CSR in Asia.

2. INTRODUCTION

CSR is an ethical or ideological issue that suggests that entities, regardless of types or size, have a responsibility to protect the society in which they operate and that such responsibility varies across countries and is influenced significantly by a culture's socio-economic attributes. Social performance reflects how well an entity has translated its social goals into practice and is measured through the principles, actions, and corrective initiatives implemented. Social performance, or the social bottom line, is about ...