Corporate social responsibility (CSR) is a form of business self-regulation to incorporate social and environmental concerns. It represents a business model that adheres to laws, ethical standards, and international norms.
As part of the business model, businesses have to take into account the impact of their activities on the environment, employees, communities, stakeholders, and other members of the public. In short, CSR represents the deliberate inclusion of the public’s interest in a business’ decisionmaking to ensure a triple bottom line that considers the planet, people, and profits.
In general, CSR involves some kind of standardized reporting that allows the business to collect information on how it is making progress on various fronts. Businesses that engage in CSR typically focus on some or all of the following:
- Environment: This requires a look at the environmental impacts of products and services, as well as what the business does outside the company to improve the environment.
- Employees: It’s important to ensure that all employees are cared for adequately. Businesses usually focus on workplace conditions, benefits, living wages, and training.
- Communities: Engaging the surrounding communities is an important part of not just creating good human capital that can serve the business, but also securing a reputation that can further establish the business.
- Regulations: Respecting regulations to the fullest and often exceeding them is part of being socially responsible.
- Crisis Preparedness: Being ready to address business crises and ensure safety for employees and surrounding communities is critical. Having plans ready and tried are important in ensuring minimal losses during times of crises.
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