Towards Nature Sustainable Business with Corporate Social Responsibility Regulation - Study on the Legalisation of Corporate Environmental Responsibility

Abstract

Biodiversity is globally degrading with an unprecedented speed. Biodiversity loss is not a threat only to ecosystems but also global economy since global business is inherently linked healthy ecosystem services. The practices of private companies, and especially of multinational corporations, can cause significant adverse impacts on the environment. The concept of corporate social responsibility (CSR) extends the idea value that the corporation is required to create from mere economic value for its shareholders to environmental and social value for the planet and the people affected by its activities. CSR can thus be used as a tool to bring forth the nature sustainable business change that our planet’s biodiversity needs. CSR has traditionally been based on voluntary corporate management measures but in the past decade it has also been implemented through legally binding initiatives. There is a global movement calling for comprehensive international environmental protection rules on corporations but so far, the legalisation of CSR at international level has mainly been taking place through soft law initiatives. The range of voluntary CSR initiatives is very wide, but only recently have the environmental aspects of CSR been strengthened by new biodiversity-related standards. The EU is a world leader in legally binding CSR legislation. It is harmonising corporate sustainability reporting and environmental due diligence standards to ensure the functioning of its internal market. Additionally, the EU is helping to create a comparable international network of sustainable reporting initiatives and legislative acts.