What is corporate social responsibility (CSR)?

Corporate social responsibility (CSR) is defined as a business model in which companies integrate social and environmental concerns into their operations and stakeholder interactions. This approach reflects a commitment to operating ethically and responsibly, taking into account the impact of their actions on the community and the environment.

In CSR, businesses acknowledge that they have a responsibility to not only generate profits but also to contribute positively to society. This can involve initiatives such as sustainable sourcing, reducing carbon footprints, engaging in fair labor practices, and supporting community development. By weaving these considerations into their strategic frameworks, companies can foster goodwill and build stronger relationships with their stakeholders, including customers, employees, investors, and the communities in which they operate.

This concept stands in contrast to models that focus solely on profit maximization, which do not take social and environmental impacts into account, or legal requirements related to taxation, which are mandatory and do not necessarily reflect a commitment to ethical practices. Overall, CSR serves as a vital framework for responsible business conduct in the modern world.