УТИЦАЈ ПРАВА ОДРЖИВОГ РАЗВОЈА НА ДРУШТВЕНУ ОДГОВОРНОСТ КОМПАНИЈА
THE IMPACT OF SUSTAINABLE DEVELOPMENT LAW ON CORPORATE SOCIAL RESPONSIBILITY

Author(s): Stefan Blagojević
Subject(s): Business Economy / Management, Energy and Environmental Studies, Accounting - Business Administration, Business Ethics, Sociology of Law, Green Transformation
Published by: Savez računovođa i revizora Republike Srpske
Keywords: ESG; corporate sustainability; foundations of sustainable corporate governance; corporate liability for human rights violations; corporate duty of care;
Summary/Abstract: In contemporary circumstances, where energy transition is understood as a shift towards renewable energy sources in order to preserve the environment, there are differing opinions on whether economic needs, as was the case in the past, should guide the transformation process, or whether the focus should rather be on social and ethical ideas. Accordingly, two developmental directions are noticeable, intertwining and influencing companies in the context of sustainability. The first is the obligation of companies to declare their corporate purpose, which is no longer limited solely to the profit function. The second is the introduction of a statutory duty to exercise appropriate due diligence in line with sustainability requirements and corporate purpose. Corporate social responsibility in business implies success measured not only by achieved financial performance, but also by monitoring the impact of applied technologies and business processes on the environment and the wider community. Members of corporate bodies are expected to promote long-term business results by considering an open list of stakeholders’ interests and applying a redefined due diligence standard. Today, ESG standards represent an unavoidable reality, which requires the creation of new business models. It is necessary to promote those companies that take care of environmental protection in order to achieve sustainable economic development. At the same time, an important part of the sustainable development law agenda remains the debate on the duties of directors and companies with respect to human rights and environmental risks.

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