This document discusses challenges related to corporate social responsibility (CSR) from a legal and corporate governance perspective. It notes that while corporate governance research has focused on linking good governance to financial performance, there are increasing expectations for businesses to address social concerns. However, most investors do not yet systematically factor environmental, social and governance issues into investment decisions. It argues that as social issues become subject to international standards and domestic legislation, corporate governance needs to bridge the divide between financial and social objectives. Moving forward, greater collaboration is needed between businesses, governments and academics to help companies both create value for shareholders and stakeholders and prevent adverse impacts.