Corporations Law

1508 Words Sep 17th, 2014 7 Pages
1.0 Areas of law
Corporate social responsibility (CSR) has long been a touchy issue for governments not just in Australia, but around the world as well. Companies in Australia are governed by the corporation’s act, which outlines the legal capacity and power of a company. The Corporations Act 2001 (Cth) s 57A1, defines a corporation as a separate legal entity, that includes any corporate body and unincorporated bodies that may sue, be sued or hold property in the name of an office holder appointed for that purpose. In context of corporate governance, the main issue is with the current legislation is in regards to director’s duties. Under the Corporations Act 2001 (Cth) s1802, directors have a civil obligation to act with due care and
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Also, the Australian government may introduce a rule that requires registered companies to participate in a policy in which each company need to design a Corporate Social Responsibility Committee that will observe every activity conducted and how will it impact those other than the shareholders, specifically the employees, suppliers, customers and also the environment. The company would then have to participate in a policy in which it is required to be publicized on its own website. Although it may be contradicting to the directors’ best interest for the company, by spending an amount on volunteering programs, such as the hunger project to help extinguish famine in poor countries, it also helps the company to build a better image that in turn, could be advantageous to the directors.

4.0 Issues of importance
The push for company reporting to include CSR related information in annual reports is of utmost importance, given the prominence of corporate influence in today’s society. The recommendation to implement triple bottom line reporting would increase the extent to which companies are taking responsibility for the consequences of their actions, in relation to corporate activities that touch on environmental or other issues of community concern13
The implementation of the policy requiring companies to establish a corporate Social Responsibility Committee are
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