Got it — here’s the detailed CSR explanation rewritten with clear headings so it’s easier to
follow and revise.
Definition of CSR
Corporate Social Responsibility (CSR) is the idea that a company should go beyond making
profits and take responsibility for the impact it has on society and the environment. It is a
self-regulating business model in which companies voluntarily set standards and practices to
operate ethically, contribute positively to communities, and minimise harm to the planet. CSR
makes a company accountable not only to shareholders but also to employees, customers,
investors, and the public.
Purpose and Scope
The main purpose of CSR is to ensure that business operations enhance rather than damage
society and the environment. This includes being aware of the company’s impact in three key
areas:
● Economic – contributing to fair growth and development.
● Social – improving community well-being and supporting human rights.
● Environmental – protecting and preserving natural resources.
When companies integrate CSR into their operations, they are often referred to as practising
“corporate citizenship,” treating the business as a responsible member of society.
corporate citizenship
Key Areas of CSR
1. Environmental Responsibility
This focuses on reducing harm to the planet. It may involve lowering carbon emissions,
recycling, reducing waste, using renewable energy, or restoring natural resources such as
planting trees and cleaning polluted areas.
2. Ethical Responsibility
This relates to fairness, transparency, and integrity in business dealings. It includes treating
employees equally regardless of age, gender, or race, providing fair pay and safe working
conditions, dealing fairly with suppliers, and being honest with investors.
3. Philanthropic Responsibility
This is about actively contributing to the welfare of society. Companies may donate to charities,
support community projects, sponsor events, or encourage employees to volunteer their time for
social causes.
4. Financial Responsibility
This ensures that CSR initiatives are supported by actual funding. It includes investing in
sustainable product development, supporting diversity and inclusion programs, and funding
eco-friendly research and infrastructure. In some CSR approaches, this is replaced or
complemented by volunteerism, where employees contribute their time and skills instead of just
financial resources.
Importance of CSR
CSR brings multiple benefits both to society and the company. It improves public image, builds
customer loyalty, and enhances trust. Internally, CSR boosts employee morale and reduces staff
turnover. Investors often see companies with strong CSR practices as more stable and
attractive for long-term growth. CSR also reduces the risk of legal and reputational damage by
avoiding unethical practices.
Examples of CSR in Practice
● Starbucks has committed to reducing greenhouse gas emissions, water usage, and
waste, while also offering healthcare and educational benefits to its employees.
● Home Depot provides career training, aims to run all facilities on renewable energy, and
works with diverse suppliers.
● General Motors donates to nonprofit organisations and has pledged to use only
renewable electricity in its U.S. facilities by 2025.
International Guidelines – ISO 26000
In 2010, the International Organization for Standardization introduced ISO 26000, a set of
voluntary guidelines for CSR. Unlike other ISO standards, it cannot be certified. Instead, it offers
practical advice on integrating social responsibility into business practices, covering areas such
as human rights, labour, environment, and ethical governance.
Conclusion
CSR is about measuring a company’s success beyond profits. It combines environmental care,
ethical behaviour, philanthropy, and responsible investment to create a positive impact on
society and the planet. Businesses that take CSR seriously not only build stronger reputations
and customer trust but also play a meaningful role in creating a sustainable and fairer world.
If you want, I can now make you a mind map of CSR with these headings so you can
memorise it visually for exams. That would make revision much faster.
