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CORPORATE GOVERNANCE AND SOCIAL RESPONSIBILITY, Reason for CSR Disclosure,…
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Special Considerations
The emergence of corporate social responsibility (CSR), a self-regulating business model that helps a company be socially accountable to itself, its stakeholders, and the public, has encouraged companies to consider all stakeholders' interests.
During their decision-making processes, for example, companies might consider their impact on the environment instead of making choices based solely on shareholders' interests. The general public is an external stakeholder now considered under CSR governance.
When a company's operations could increase environmental pollution or take away a green space within a community, the public is affected. These decisions may increase shareholder profits, but stakeholders could be impacted negatively. Therefore, CSR encourages corporations to make choices that protect social welfare, often using methods that reach far beyond legal and regulatory requirements.
CSR DISCLOSURE
The growing CSR awareness is also reflected in the increasing number of CSR and sustainability reports and the provision of CSR-related information such as through advertising (Kolk 2005). CSR disclosure can be defined as the information that a company discloses about its environmental impact and its relationship with its stakeholders through relevant communication channels (Gray et al. 2001).
Annual General Meeting (AGM)-is a mandatory yearly gathering of a company's interested shareholders. At an AGM, the company's directors present a yearly report containing shareholders' information about its performance and strategy.
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• Financial statements: The company presents its annual financial statements to its shareholders for approval.
• Ratification of the director's actions: The shareholders approve and ratify (or not) the board of directors' decisions over the previous year. This often includes the payment of a dividend.
• Election of the board of directors: The shareholders elect the board of directors for the upcoming year.