Efficient Functioning of a Capitalist System Coursework

Efficient Functioning of a Capitalist System - Coursework Example The country's law should also assist companies to come-up with their CSR policies; hence the company law has to bring required amendments. Like other countries, the concept of CSR is gaining momentum in the UK and the company law system is incorporating required changes so that companies can carry out their social responsibility. UK company law system is considered as an over-complicated system which has a blend of both modern and radicalism. All the UK listed companies have to comply with the combined code and they have to publish the Turnbull report. This report ensures that the company will manage its non-financial risks and it will pay due respect toward environmental, social and ethical factors along with its main business practice. The UK government always tried to maintain a balance between shareholders interest and this view was clearly reflected in the white paper that provides a guideline which the companies have to follow. A government of the UK has always supported the id ea that the duty of the director of a company has to be codified and the new director should gain an introductory idea regarding the duty toward society. After considering all the factors into account, the UK government had introduced certain amendments like draft clauses, volume II- Schedule II, 2 (b) which was a step toward modernizing the company's lawyer. Different thinkers have the different view regarding capitalism and CSR. The term corporate was well defined by Melvin Aron Eisenberg in the following fashion â€Å"the business corporation is an instrument through which capital is assembled for the activities of producing and distributing goods and services and making the investment. The business corporation should have as its objective the conduct of such activities with a view to enhancing the corporation's profit and the gain of the corporation’s owners.