Corporate social responsibility and corruption risks of enterprise board members

Abstract

Practice of Corporate Social Responsibility applies not only to the labor market and to labor law. Its aim is to encourage society and entrepreneurs to develop a socially responsible entrepreneurship that involves active participation in ensuring of the working and living conditions for both employees and society in overall.In Latvia, there is anactual need to organize and create a socially responsible business environment where the main operating principles are clearly defined and where the main criterion is reputation that plays an important role in ensuring the social stability and sustainability. The company's board implements the company's financial policy and thus bears a responsibility in the face of employees and the third parties involved. The goal of the current study is to research the cases where the legal responsibility of the board members towards third parties occurs and to identify the main corruption risk factors. Two research questions are being proposed: (1) What is the legal background for fighting corruption in enterprise boards in Latvia?; (2) What are the main corruption risks for enterprise board members? The research methods employed in the study are monographic research, comparative analysis of the legal bases and case study. The novelty of the current research lies with the identification of specific risk factors in the field, which will allow working out a set of practical suggestions.