Corporate social responsibility (CSR)
What is corporate social responsibility?
Corporate social responsibility (CSR) is a broad business concept. It usually describes a company's commitment to carry out its business in an ethical way.
This means managing your business while considering its social, economic and environmental impact, and respecting human rights.
Examples of corporate social responsibility
Corporate social responsibility can affect almost every part of your business. It includes a wide range of activities, such as:
- environmental management, eg waste reduction and sustainability
- responsible sourcing, eg using only fair trade ingredients
- improvement of working standards and conditions
- contributing to educational and social programmes
- employee volunteering
- socially responsible investment
- development of employee and community relations
For more ways to make an impact, see CSR activity ideas for your business.
CSR and stakeholders
Your stakeholders are the people or groups interested in or affected by your business. CSR can help you make a positive impact on different groups of stakeholders, including:
- Customers - through fair practices and good customer service.
- Suppliers - by choosing responsible partners with good working and environmental standards. See more on ethical trading.
- Communities - through local support, charity work and volunteering. See corporate social responsibility: local community.
- Employees - by going beyond legal requirements and supporting wellbeing and development. See staff motivation and performance.
Reducing your environmental impact through different CSR initiatives, such as waste and resource management, can also greatly benefit your business.
Importance of corporate social responsibility
CSR can help improve business performance, increase competitive advantage and build trust with customers and employees. It can also reduce costs by cutting waste and avoiding unnecessary expenses. Perhaps most importantly, CSR helps create a positive reputation for your business as ethical and responsible See more business benefits of corporate social responsibility.