Definition of Corporate Social Responsibility (CSR)

CSR is about how companies manage the business processes to produce an overall positive impact on society.

In another way CSR or Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large.

In its broadest sense, corporate social responsibility represents a concern with the needs and goals of society which goes beyond the merely economic. Insofar as the business system as it exists today can only survive in an effectively functioning free society, the corporate social responsibility movement represents a broad concern with business’s role in supporting and improving the social order.

The impact of CSR

Given the broad definition of CSR there are many areas of business operations that are affected by it. The most often mentioned elements of CSR are:

1. Governance: Sound governance, ethical conduct of staff, transparency of operations, no conflicts of interest, compliance with listing rules, compliance with corporate law.

2. Risk Management: Organizational health & safety, product safety, regulatory compliance, reputation management, responsible business practices, stakeholder engagement.

3. Value Chain: Responsible procurement, supplier management, externalization of costs, supplier screening, supplier feedback, fair trade.

4. Social: Human rights, community engagement, philanthropic activities, charitable donations, staff volunteering, social benefits, local capacity building, social investment.

5. Employees: Turnover, morale, satisfaction, work-life balance, internal culture (transparency), labor practices, job security, remuneration, diversity, equal opportunity, training.