Corporate social responsibility

Definition

Corporate Social Responsibility (CSR) involves companies integrating social and environmental concerns in their business operations and interactions with stakeholders. It aims to ensure that businesses operate in an ethical and sustainable manner.

5 Must Know Facts For Your Next Test

1. CSR can enhance a company's reputation and build consumer trust.
2. Implementing CSR practices can lead to cost savings through energy efficiency and waste reduction.
3. CSR initiatives often focus on areas such as environmental sustainability, fair labor practices, and community engagement.
4. Many investors consider CSR performance when making investment decisions, linking it to long-term financial success.
5. Effective CSR strategies are typically aligned with a company’s core business objectives and values, promoting sustainability.

Review Questions

• How can CSR enhance a company's reputation?
• What are some common areas of focus for CSR initiatives?
• Why might investors be interested in a company's CSR performance?

Related terms

Sustainability Reporting:

The practice of measuring, disclosing, and being accountable for organizational performance towards the goal of sustainable development.

Triple Bottom Line:

A framework that suggests companies should commit to focusing on social and environmental concerns just as they do on profits.

Stakeholder Engagement:

The process by which an organization involves people who may be affected by the decisions it makes or can influence the implementation of its decisions.