It will examine the guidelines and also the code of conduct under which the directors or rather the board of directors operates under. It also shows the practices which they undertake in order to ensure the success of the company. This will also give knowledge on how the stakeholders’ diversity can be used in order to create appropriate boards that will promote the activities of the CSR. This involves taking stakeholders with different opinions on different issues that will affect the company and putting them togetherKhan, (2010).
Corporate social responsibility (CSR) is a form of governance that is brand new and is mostly used by almost all modern organizations. In the different companies, there are several and different form of governance. They are used to solve several situations in order to have a good outcome and for them to be productive. There is a simple example which states that in case there is an asset that is owned by a particular organization and it is under stake, if the approach chosen to handle the issue is sole ownership, it would be the worst approach to be used by the governors of the organization. The best way to handle such a situation would be that the board of directors take action.
The CSR is proving to be a strong and suitable way to solve most of these problems. The boards of directors are very positive towards the strategy. This has improved the performance of many companies. This is also very favourable since it includes and involves the shareholders and even the stakeholders. This has added the strength of the strategy. Most of the parties involved in the stakeholders group are the managers, suppliers, employees and even some outside firms might be counted in. But there are still problems and setbacks with the strategy as compared with other systems of governance.