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CORPORATE SOCIAL RESPONSIBILITY

Within the world of business, the main “responsibility” for corporations has historically been to make money and increase shareholder value. In other words, corporate financial responsibility has been first driving force. However, these past few years, there is a movement that gathered momentum and taken hold in defining broader corporate responsibilities– for the environment, for local communities, for working conditions, and for ethical practices. This new driving force is known as corporate social responsibility (CSR). CSR is oftentimes also described as the corporate “triple bottom line”–the totality of the corporation’s financial, social, and environmental performance in conducting its business.

While there is no universal definition of corporate social responsibility, it generally refers to transparent business practices that are based on ethical values, compliance with legal requirements, and respect for people, communities, and the environment. Thus, aside from profit maximization, companies are responsible for the totality of their impact on people and the planet. “People” constitute the company’s stakeholders: its employees, customers, business partners, investors, suppliers and vendors, the government, and the community. Increasingly, stakeholders expect that companies should be more environmentally and socially responsible in conducting their business. In the business community, CSR is alternatively referred to as “corporate citizenship,” which essentially means that a company should be a “good neighbor” within its host community

Today, more and more companies are recognizing that in order to stay productive, competitive, and relevant in a ever changing business world, they have to become socially responsible. In the last decade, globalization has blurred national borders, and technology has boomed, innovated and

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