What does 'corporate social responsibility' (CSR) entail?

Corporate social responsibility (CSR) involves a commitment by businesses to conduct themselves in an ethical manner while considering their impact on society and the environment. This means that companies not only focus on their financial performance but also take into account the welfare of their employees, customers, communities, and the broader environment. By contributing to social good through ethical business practices, organizations can build trust with stakeholders, enhance their reputation, and ultimately create a sustainable business model that benefits both the company and society at large.

This approach often includes a variety of initiatives such as reducing carbon footprints, improving labor policies, engaging in fair trade practices, and ensuring product safety. Thus, CSR fosters a culture in which businesses acknowledge their responsibilities beyond profitability and make a conscious effort to improve their communities and the environment while still achieving long-term success.