"Convergence of Corporate Governance and Social Responsibility - A Need of Today"

Corporate governance relates to the relationship among various stakeholders in an organization and aims at maximizing shareholders' value legally, ethically on a sustainable basis, while ensuring fairness to the company's customers, employees, investors, vendor partners the government and the community. It is also a system of making directors accountable to shareholders for the effective management of companies, in the best interest of the company and also with adequate concern for ethics and values.
The new model of business success for today's corporations would include a movement from philanthropy to the convergence of business and social interests as a source of sustainability. The concept that corporations should be concerned about social issues is by no means universally accepted social responsibility is a form of corporate strategic management that sets its standards of conduct at a level higher than constraints, and a system for the governance of transactions and relations between the firm and its stakeholders. A comprehensive governance approach considers not only resources based stakeholders but also market-based and sociopolitical stakeholders as these parties, if fact provide a license for the operation of a business and can influence industrial activities through various manifestations including their representative institutions. Since there is a survival threat from stakeholders other than investors, the CSR gains its importance as an extended governance model.