Network Governance as a Lever for Improved Corporate Social Responsibility

Abstract

In this paper we explore the question of corporate governance and its connection with CSR.We outline why a traditional governance architecture (e.g. unitary board structures) fails to support monitoring and strategic advice functions concerning CSR of the board adequately. We then provide our perspective on network governance and highlight how it provides better monitoring and strategic advice with regard to CSR. Finally, we suggest how network governance can be introduced by amendments to the corporate charter. We thus contribute theoretically by advancing the conceptualization of corporate governance and CSR as well as by providing alternative thinking on governance structures. We contribute practically by advancing concrete suggestions for implementation of network governance in ways that can supplement or replace the need for external laws and regulations. As such we aim to support theoretical and practical advances for better governance and higher levels of CSR.

Keywords: Corporate Governance, Constitutions, Corporate Social Responsibility, Self-governance, Stakeholder Engagement

JEL Classification: D8, G3, M1, M14