Given the existence of corporate governance codes, based presumably on Essay

Given the existence of corporate governance codes, based presumably on some ethical considerations, among British PLCs why do we still observe crises and failures of, for example, the Northern Rock type - Essay Example In like manner, Bear Stearns an upper tier US investment bank was only rescued from the crises by the Federal Reserve Bank. (Avgouleas, 2008). In addition other major investment banks such as Merrill Lynch, Citigroup, UBS, and JPMorgan have all announced negative earnings in their last financial reports as well as plans to lay off a significant number of workers. The paper first of all looks at the regulatory environment of Northern Rock; Corporate social responsibility (CSR) refers to the awareness, acceptance, and management of the implications and effects of all corporate decision†making, taking particular account of community investment, human rights, and employee relations, environmental practices, and ethical conduct. (Park, 2007). According to Hsueh (2008) CSR has received much attention in recent years and more and more businesses are taking CSR to improve their corporate image. CSR activities show consideration for the environment, consumers, charity, minority groups, employee welfare, community development, women empowerment, etc. (Hsueh, 2008) For example car manufacturers across the globe are responding to the major global concern of Carbon dioxide (CO2) emission which is tremendously depleting the ozone layer and increasing the risk of cancer and other diseases that come as a result of ultraviolet light. The next section looks at the banking code in relation to corporate social responsibility. â€Å"The practice of CSR is subject to much debate and criticism. Proponents argue that there is a strong business case for CSR, in that corporations benefit in multiple ways by operating with a perspective broader and longer than their own immediate, short-term profits†. (Sacconi, 2004) â€Å"Critics argue that CSR distracts from the fundamental economic role of businesses; others argue that it is nothing more than superficial window-dressing; still others argue that it is an attempt to pre-empt the role of governments as a watchdog over