When leading for the Conservatives on the Companies Act 2006, I was unimpressed by the general lack of policy and coherence shown in the debates surrounding directors’ responsibilities and also the extent of non-financial reporting. We were therefore pleased with David Cameron’s request for a Responsible Business Working Group to report to the Conservative Party on this important area.
One of the basic things that our working group questioned was whether legislation and regulation are necessarily the best ways to institute improvements in responsible business practice, aka corporate social responsibility (CSR)? It was recognised that on the one hand there are many politicians, particularly in the Labour Party, that instinctively believe in the power of regulation. However there are, on the other hand, many in the business and political communities, who do believe in the desire of most businesses to promote responsible business, albeit on the basis of making profits.
