What Is It?

Corporate Social Responsibility (CSR) is the concept that businesses have a responsibility to the society in which they operate. It involves self-regulation and actions that positively impact the world. The triple bottom line principle, emphasizing social and environmental impact along with profits, often guides CSR.

 

Four Traditional Categories of CSR

  1. Environmental Responsibility:

    • Focuses on environmentally friendly practices.
    • Involves reducing pollution, greenhouse gas emissions, single-use plastics, water consumption, and waste.
    • Includes regulating energy consumption and promoting the use of renewables and sustainable resources.

  1. Ethical Responsibility:

    • Is concerned with fair and ethical business operations.
    • Involves fair treatment of stakeholders such as leadership, investors, employees, suppliers, and customers.
    • This may include setting higher minimum wages and ensuring products are sourced ethically, avoiding slavery or child labor.

  1. Philanthropic Responsibility:

    • Aims to actively contribute to making the world and society better.
    • Involves dedicating a portion of earnings to charitable causes.
    • Some companies create charitable trusts or organizations to have a broader positive impact.

  1. Economic Responsibility:

    • Focuses on financial decisions aligned with a commitment to doing good.
    • Not solely about maximizing profits but ensuring positive impacts on the environment, people, and society.

 

Many organizations communicate their CSR efforts through reports, and the “profit, people, planet” approach encapsulates the essence of CSR, emphasizing a balance between economic success, social responsibility, and environmental stewardship.