Corporate Social Responsibility
Glossaries
| Term | Definition |
|---|---|
| Corporate Social Responsibility | Corporate Social Responsibility (CSR) is the voluntary integration by companies of social, ethical, and environmental concerns into their business operations and their interactions with stakeholders (employees, customers, suppliers, local communities). It is a company's commitment to operating in a sustainable and responsible manner, going beyond simple compliance with legal obligations. What it is for / why it is importantIt serves to create value not only for shareholders (profit) but for society as a whole. It is fundamental for building a sustainable business model in the long term. An effective CSR strategy improves brand reputation, increases consumer trust and loyalty, attracts and retains talent (employees prefer to work for ethical companies), and reduces operational and legal risks. When it is used / in what context it is usefulCSR is not a single campaign, but a strategic approach that pervades the entire company. It applies to supply chain decisions (e.g., no child labour), production processes (e.g., reducing CO2 emissions), personnel policies (e.g., gender equality, employee welfare), and the relationship with the local community (e.g., supporting social projects). Practical exampleA coffee-producing company implementing a CSR strategy might:
Extra insightMany confuse CSR with ESG (Environmental, Social, Governance). CSR is the set of actions and philosophies the company adopts to be responsible. ESG is the measurement framework that investors and analysts use to objectively evaluate a company's sustainability performance. Good CSR leads to a good ESG score. |
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