By: Leyla Balimtas
What is it and how does it play a role in business?
Corporate social responsibility (CSR) is a self-regulatory principle where a business monitors itself and takes the moral, ethical, and philanthropic responsibilities for its effect on the environment and impact on social welfare. As a whole, an organization’s primary responsibility is to its stockholders. And to meet this responsibility, a company’s CSR goals and its business ethics must work together to ensure that the legal and discretionary responsibilities match the values and actions of the organization.
The overall nature and concept of CSR is relatively new, having only been in use since the 1960s. At this time, with the advent of the civil rights movement, consumerism, and environmentalism, society’s expectations of business has evolved. Many people, both inside and outside of the corporations look to those companies to internalize the full cycle of their operations, spearheading solutions to issues such as waste and pollution created by their operations. Society wants businesses to use their influence in the world and their human and financial capital to “make the world a better place.”
Businesses, whether local or global, affect many lives from their supply chains to their customers and downstream through the disposal of their products. It is for this reason that so many companies and industries take their corporate social responsibilities seriously. For more information on this topic, go to HERE.