Practical mechanisms for aligning performance, ethics, and accountability are urgently needed. The context for this includes the organisational, technological, and regulatory transformations underlying current patterns of globalisation. These factors, combined with the associated emergence of civil action concerned with corporate accountability and deeper value-shifts, make such realignments a practical possibility.Social and ethical accounting, auditing, and reporting provides one of the few practical mechanisms for companies to integrate new patterns of civil accountability and governance with a business success model focused on (...) deepening stakeholder relationships around core non-financial as well as financial values and interests. (shrink)

Sustainability as a narrative has mainstreamed, but practice is stuck in the ‘valley of death,’ with exemplary business action to internalize social and environmental externalities remaining ad hoc and small scale. Civil regulation has had significant impacts, but appears unable to act as a driver of systemic change. Addressing change at the system level requires the evolution of corporate governance away from intensive towards an extensive accountability, embedded within a ‘public fiduciary.’ Such a shift in fiduciary arrangements is needed to (...) institutionalize and leverage the growing involvement of the state in economic and industrial practice through direct enterprise ownership, the increasing importance of sovereign wealth funds and national development banks, and the significance of public-private partnerships. This re-emergence of the role of the state in economic governance will underpin the next generation of corporate responsibility, framed largely by an international political economy led by major emerging economies. (shrink)

Sustainability as a narrative has mainstreamed, but practice is stuck in the ‘valley of death,’ with exemplary business action to internalize social and environmental externalities remaining ad hoc and small scale. Civil regulation has had significant impacts, but appears unable to act as a driver of systemic change. Addressing change at the system level requires the evolution of corporate governance away from intensive towards an extensive accountability, embedded within a ‘public fiduciary.’ Such a shift in fiduciary arrangements is needed to (...) institutionalize and leverage the growing involvement of the state in economic and industrial practice through direct enterprise ownership, the increasing importance of sovereign wealth funds and national development banks, and the significance of public-private partnerships. This re-emergence of the role of the state in economic governance will underpin the next generation of corporate responsibility, framed largely by an international political economy led by major emerging economies. (shrink)

The paper challenges the purely economic and financial bottom line perspective of business enterprise. Five fundamental questions are raised to address the issue of socially responsible business. Social posturing is not social responsibility, nor is legal compliance true ethics. This is cynical instrumental- ism. Nor, of course, naive idealism has much merit in it. Genuine social responsibility is correlated with rising expectations of transparency from business enterprises. While benchmarking has the advantages of simplicity and cheapness in evaluating social responsibility, the (...) authors suggest deeper and broader alternatives to this methodology such as 'ethical budgets' and 'ethical accounting statements'. (shrink)