CSR

Corporate social responsibility (CSR) refers to a business approach that integrates social, environmental, and ethical concerns into company operations and interactions with stakeholders. It encompasses activities beyond compliance and profit, aiming to contribute to sustainable development while balancing the interests of customers, employees, communities, suppliers, and shareholders. CSR can include philanthropy, but its emphasis is on systemic impact and responsible governance.

CSR activities typically cover environmental stewardship (reducing emissions, energy efficiency, waste reduction, responsible sourcing), social responsibility (labor rights, diversity and inclusion, community engagement, consumer protection), and economic responsibility (transparent governance, ethical conduct, fair competition, long-term value creation). Companies may address supply chain integrity, risk management, and stakeholder dialogue as part of CSR.

Historically, CSR evolved from charitable giving and voluntary codes to a broader business strategy aligned with sustainability. The concept has become closely linked with ESG (environmental, social, governance) criteria and sustainability reporting, as firms seek to communicate performance and impact to investors and the public.

Frameworks and reporting standards commonly referenced in CSR include ISO 26000, the Global Reporting Initiative (GRI) standards, the United Nations Global Compact, the OECD guidelines for multinational enterprises, and the Sustainability Accounting Standards Board (SASB). Integrated reporting and materiality assessments are increasingly used to align CSR disclosures with business strategy.

Criticisms of CSR concern inconsistent standards, potential greenwashing, and questions about whether CSR adds value or imposes costs. Debates continue about the appropriate role of CSR in corporate governance and fiduciary duties, and whether CSR should be voluntary or regulated.