How Corporate Law Inhibits Social Responsibility

In most corporate institutions, people focus on making profits more than on the methods used to get that profit. This means that corporates can use dubious methods that can cause harm to others without being held accountable for their actions.

Although there are many corporate laws, none of them seem to have repercussions for failure to make social responsibility a priority.

Corporate laws focus only on the corporation

This is one of the reasons that has led to the increase of lack of social responsibility. Such laws focus on punishing the corporate as a whole without holding the individuals responsible for such actions accountable. Executives at such corporations can get away with any act regardless of how harmful it is.

Agreement to buy real estate

As such, they don’t feel the need to make amends or taking other actions. Changing such laws to target individual executives will lead to fear and more social responsibility. Despite this, some companies like take their social responsibility seriously.

The focus isn’t on why corporates damage public interest

Instead of coming up with rules that target the root cause of the problem, they tend to focus on limiting the amount of damage done. Corporates get away with inflicting pain and long lasting damage to innocent citizens most of the time because of such rules.

For instance, when people protest about a power plant or factory being built, the focus isn’t always put on why that is happening. Instead, measures regarding alternative ways that the plant can operate are put up as well as the space they can occupy.

Corporate laws disregard ethics

The effect that corporates have on their surrounding are always viewed as less important or not important at all. This is why corporate institutions can dispose their chemicals carelessly and even destroy trees without batting an eye.


They know they cannot be forced to face the law by causing such harm to the environment. They continue their operation as usual until extensive damage is done or until they can no longer make profits.

Fear by low level employees

Low level employees are always afraid that if they speak up they may get unjust results. They depend on their jobs to make ends meet and most of them cannot handle losing their jobs.

Such fear makes them focus on following commands from higher management even when they know such demands are detrimental to the society. Having laws that can protect such employees will help eliminate such fear and help them take more social responsibility.

Misguided belief

The belief by corporates that they only have to follow the law is one of the factors that mislead them. Since the law doesn’t cover social responsibility, most of them don’t think they should be more responsible to the society.

Statue of justice on Bokeh background

Some of them only end up pretending to care when they think such pretenses can be beneficial to them. Making up laws outside the corporate that protects the society can help rectify this problem.


Many corporates have caused much harm to the environment around them and have always gotten away with it. In some cases, the worst they have gotten is a warning. This has led to the disregard for social responsibility especially by the top management. This trend is only showing signs of continuing the same way unless the laws within the corporates and outside are changed to protect the society.