INSTITUTIONAL FRAMEWORK AS A CONDITION OF EFFICIENT CORPORATE GOVERNANCE

Abstract

This paper presents a conceptual analysis of the institutional framework, which
the authors see as a condition of effective corporate governance and a new paradigm
of sustainable development, ie CSR and that it will in the future require increasing
respect and implementation. The institutional approach to CSR is being proposed. It
starts from the hypothesis that the three existing theoretical approaches (egoistic,
altruistic and enlightened self-interest) cannot resolve the issue of CSR efficiency.
Inclusion of mandatory institutional criteria would significantly improve the
regulation of the relationship between business and society. It is believed that this
would be the most effective instrument of management of CSR.