Corporations and aspects of Labour Law Coursework

Corporations and aspects of Labour Law - Coursework Example The principles of fairness, transparency and accountability need to be incorporated in corporate governance for a sustainable development. The role of the government in providing the framework helps in establishing the benchmark or threshold for the companies to follow the best practices is very important because, it influences policy making in the corporate world and instill competition among the companies in the positive direction by reorienting their strategies to become good corporate citizens for a sustainable development in the long run. The paper seeks to study and analyse the impact of compliance with labour laws by the companies on corporate governance and corporate social responsibility (CSR), and the need for active regulatory intervention in tune with the environmental changes for economic development. Introduction Industrial peace in one of the important criteria for the development of the economy in a country, and the government through its policies provide the framewor k and regulate the industrial relations within the country. It is a prerequisite for the success of a business undertaking (or a not-for-profit organization or government department), because, the employees are the important stakeholders in an organization and their active cooperation is essential for the overall success of the CSR policies of the company and profitability. ‘Reflexive critique’ is one of the six key principles in action research: â€Å"An account of the situation through documentation such as notes, transcripts or official documents, in order to make implicit claims to be authoritative, i.e., it implies that it is factual and true.  However, it must be noted that truth in a social setting, however, is relative to the teller.  Ã‚  The principle of reflective critique ensures people reflect on issues and processes and make explicit the interpretations, biases, assumptions and concerns upon which judgments are made.  Ã‚  In this way, practical accou nts can give rise to theoretical considerations†. (O’Brien, 1998) In this paper, corporate governance and the corporate social responsibilities shouldered by the companies such as economic, legal, ethical and discretionary, in respect of labour relations and compliance with the labour laws have been analysed from this perspective. Liberalization and globalization of the economies and the consequent developments such as Business Process Outsourcing (BPO) in a large scale to the developing countries, the question of proper treatment of the employees with respect and dignity in these countries has also emerged in the backdrop of discrimination, child labour, poor wages and working conditions, in the recent years. Good corporate citizen (2007) states â€Å"Corporate citizenship recognizes that businesses have a responsibility to respect the individuals, the community and the environment in a way that when devising or implementing any rightful business strategy they will ab ide by laws and regulations, and adhere to high ethical standards†, and the role of employees is very important in this regard. This paper focuses mainly on employees as stakeholders, and seeks to answer the question ‘Does compliance with labour laws improve Corporate Governance and CSR?’ thereby improving the labour relations. It is also important to note that success