Corporate Accountability versus Corporate Social Responsibility

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Corporate Accountability versus Corporate Social Responsibility
D Zhang, Member
How to differentiate the concepts of corporate accountability and corporate social responsibility?
From my understanding:
- Corporate Accountability (CA) is more like a legal obligation that companies have to follow, it is required, non-voluntary
- Corporate Social Responsibility (CSR) refers to any attempt to get corporations to behave responsibly on a voluntary basis, out of either ethical or bottom-line considerations.

Corporate Accountability versus Corporate Responsibility
bimal bk, Member
Yes, in my view CA is externally forced upon firms by such stakeholders like: human rights organizations, unions, development and environment organizations to make organizations fulfil their legal and social duties.
CSR on the other hand is a voluntary exercise to enrich local as well as international society with some sorts of contributions.

Corporate Accountability versus Corporate Social Responsibility
ROMULO Moraes, Member
@bimal bk: I agree with you. And we must make sure that the customers feels the diference too!

Corporate Accountability versus Corporate Social Responsibility
Girish L. Chhagani, Member
Corporate accountability is indeed compulsory in nature. It deals with reporting transparently the true and fair utilization of its corporate resources (human, fixed assets, current assets etc.). It is required for corporations running on the basis of collective public funds.

Corporate social responsibility accounting is to report the necessary steps taken to avoid ill effects of such utilization of resources or for betterment of the people related or near by the organization and its country. CSR may be voluntary, but in India its compulsory to report CSR in the report of the directors.

Corporate Accountability V Corporate Responsibility
Susan Power Bergin, Member
Corporate accountability is about running your operations openly and honestly, from every level of the organization.
In the event an audit is undertaken, the management know that protocols are in place. So they do not have to worry about any irregularities. Any questions or queries that anyone has on any aspect of the organisation a clear honest account of what is being done to resolve any conflicts or discrepancies can be accounted for.
Example: Hazardous waste - complies with local, national and International legislation.
So corporate accountability is very much a PR tool.

Corporate responsibility is insuring that a company works within the relative legislative criteria relevant to their business. This also includes the legal requirements of Health and Safety in the workplace.

To sum up in brief: Corporate Responsibility is being responsible for what your business is doing and then being able to account for the policies and procedures that are put in place to prove compliance.


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