Corporate social responsibility and the legal profession

Abstract

Corporate Social Responsibility sees its origins in the Hammurabi Code (circa 1700 BC): it penalised the negligence of innkeepers, builders and farmers which led to the death of others. The nineteenth century saw exemplary businesses, such as The Rowntree Corporation, provide housing, education and healthcare for its employees. The concept has progressed considerably since then and now incorporates assessment of the impact of a business on the environment and on society, both locally and in the global arena.2 The global financial crisis has greatly increased awareness of the importance of corporate social responsibility. This dissertation was inspired by Halina Ward's article 'Corporate Responsibility and the Business of Law'3 , which instigated me to delve into the relationship between the two. From a legal perspective, corporate social responsibility issues have been somewhat addressed by legislation; in the legal profession, from a private perspective, corporate social responsibility has been integrated, to some extent, in law firms' environmental policies such as waste management. However corporate social responsibility is lacking in the advisory role of the legal professional. I feel that this absence undermines the whole concept of corporate social responsibility, and as a legal procurator by profession, I seek to examine the issues which need to be tackled to bring the legal profession in line with the times. I will start by tackling the foundational side of business ethics: from Milton Friedman's notion that the social obligation of a company is to abide by the law to the models giving wider obligations of corporate social responsibility to corporations. I will proceed with examing various theories leading to the common good perspective, including the development of virtues, leading to Corporate Citizenship and the emergence of corporate social responsibility in today's life, giving way to the emerging awareness of corporate social responsibility in the legal profession: environmental issues and pro bono work. But, although these are a start in the right direction, much more needs to be done to ensure corporate social responsibility at the core of the legal profession, i.e in legal advice. I will examine legislation, international documents and local legislation affecting corporate social responsibility to show the importance of the legal profession's involvement. In an effort to emphasise that it is logical to attain responsible business practice, I discuss social responsibility and reporting as well as Corporate Governance and Environmental Issues. Since the accountancy profession is also an advice-giving profession I will delve into the Accountancy Profession's involvement in the corporate social responsibility arena. I will then attempt to apply this involvement to the legal profession, taking into consideration the lawyer's legal obligation as well as his moral obligation. This will lead me to show the profession's reluctance to change and on to the reasons why it makes sense for this change to take place: from the possibility of the firm's reputation being harmed by a lawyer's questionable business practices to showing that responsible business can make commercial sense. Finally, I seek to address the lacuna -- lawyers' contribution to the corporate social responsibility of their clients, or that of their employers in the case of in-house lawyers - and to discuss answers as to the way forward.