The State of CSR in the UNited States
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Presentation at Workshop on Corporate Social Responsibility and Regulation: Comparative Perspectives City University of Hong Kong December 14, 2015
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The State of CSR in the UNited States
- 1. The State of CSR in the United States Larry Catá Backer (白 轲) W. Richard and Mary Eshelman Faculty Scholar Professor of Law and International Affairs Pennsylvania State University 239 Lewis Katz Building, University Park, PA 16802 Workshop on Corporate Social Responsibility and Regulation: Comparative Perspectives City University of Hong Kong December 14, 2015
- 2. Presentation Roadmap • Historical Context • Current Legal Foundations • Current Legal Structures • Beyond Legality • Contradictions and Battlegrounds • Conclusion
- 3. Historical Context • Corporate Purpose • Shareholder • Stakeholder • State • Corporate Personality • Property in the hands of shareholders • Autonomous institutional actor • Creature of the state
- 4. Foundation of Current Legal Approaches • Relationship between enterprises and the state • Corporate autonomy • Legality as the basic framework • Compliance • Fiduciary duty (but to whom?) • Territoriality
- 5. Current Legal Structures of CSR • Charity • Embedded in tax code • Tied to shareholder/enterprise welfare maximization • Ethics • Corruption • Surveillance • Operational codes of conduct tied to director fiduciary obligations • Sustainability • Tied to the ·”business case”
- 6. Beyond Legality • Soft Law Frameworks • International (OECD, UNGP) • Proprietary (Ethics Codes Codes) • Private third party standards (Certification) • Obligations Within Supply Chains • Supplier Codes • International (OECD, UNGP) • Incorporation into Surveillance and Anti-Terror networks
- 7. Current Contradictions and Battlegrounds • The Business and Human Rights Project • Changing nature/sources of the CSR obligations of corporations • Internationalization of U.S. Courts as new global CSR remedial mechanism • Alien Tort Claims Act • Legalization of CSR • Disclosure regimes • Benefit corporations • Internationalization of legalization movement • Treaty • Remedial mechanisms • Supply chains • Veil piercing • Enterprise law
- 8. Conclusion • Still large gap between international CSR community and US national context • Premises of US legal structures substantially constrain legalization of CSR • Internationalization faces large hurdles within US legal framework • US willingness to ratify and transpose unclear • Societal frameworks changing much more rapidly • Remedial mechanisms still grounded in legal-national obligation • Taste for extraterritoriality mixed • Statutes broader • Judicial reticence
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