NO.043
PEARCE WELCOMES CAMAC REPORT ON SOCIAL RESPONSIBILITY OF CORPORATIONSThe Parliamentary Secretary to the Treasurer, Chris Pearce, today welcomed the release of the report by the Corporations and Markets Advisory Committee (CAMAC) on the social responsibility of corporations.
“CAMAC's report on the social responsibility of corporations is a considered and helpful contribution to this important debate in Australia,” Mr Pearce said.
“The report finds that a company's management of the environmental and social considerations relevant to its activities should be part of any strategy to promote the company's continuing well‑being and to maximise shareholder value over the longer term.
“CAMAC's findings demonstrate that companies which fail to assess and respond to the impact of its activities on the environment and society may jeopardise their commercial future.
“Importantly, CAMAC does not consider there is a need to amend the current corporate governance framework to facilitate greater corporate social responsibility. CAMAC finds that the current formulation of directors' duties allows decision makers sufficient flexibility to take relevant interests and broader community considerations into account,” Mr Pearce said.
The report recommends the extension of the current corporate disclosure requirements for directors of listed public companies to all listed entities.
“The Government will consider CAMAC's findings and recommendation along with the report from the Parliamentary Joint Committee on Corporations and Financial Services into corporate social responsibility before taking a decision on whether to amend the current regulatory framework. The Government will also review whether it can undertake additional activities or new initiatives to encourage improved corporate social responsibility. The Government will formally respond to these reports in due course,” Mr Pearce said.
Mr Pearce referred the issue of directors' duties and corporate social responsibility to CAMAC for consideration on 22 March 2005. CAMAC released a well regarded discussion paper on this issue in November 2005. CAMAC's report is available from its website: www.camac.gov.au.
12 December 2006 - Melbourne - Contact: Conor O'Brien 03 9887 3890