The Global Rise of "Corporate Social Responsibility" (CSR) in Corporate Legislation: Symbolic Expression or Substantive Action?

Corporate social responsibility (CSR) has evolved into a legal term, increasingly recognized as a significant component of corporate law. This article presents a global empirical study on the emergence of CSR within corporate legislation, revealing that at least one-third of the 63 sampled countries have integrated literal or substantive CSR provisions into their corporate statutes. It explores various emerging approaches to stakeholder-oriented governance and identifies a distinct North-South divide in legislative strategies. These new forms of CSR corporate legislation interact in complex ways with traditional stakeholder-oriented institutions, potentially serving as valuable complements, inadequate substitutes, or merely superficial additions to existing governance structures. Despite their growing presence, these new CSR provisions often face significant enforcement challenges, suggesting a tilt toward managerialism rather than a substantive shift toward stakeholderism in corporate governance. The primary function of CSR codification in corporate statutes remains extra-legal, aiming to drive norm change and, over time, promote more responsible business practices.