Corporate social responsibility (CSR)

When we hear the term corporate social responsibility or CSR, we're talking about the idea that businesses have obligations beyond simply making a profit. Also known as corporate sustainability or corporate citizenship, CSR describes efforts companies make to benefit society and the environment, not just their bottom line. The United Nations Industrial Development Organization defines CSR as companies integrating social and environmental concerns into operations and stakeholder interactions, emphasizing voluntary initiatives like environmental management, fair labor practices, community engagement, and good governance. The importance of CSR has grown dramatically in recent years. Consumers, employees, and investors are expecting more from companies than ever before. Modern consumers want authenticity, and a brand social and environmental record can be as important as the product itself. A strong CSR track record enhances brand image and reputation, fosters customer loyalty, improves employee satisfaction and retention, and attracts investment from ethical partners. Laws in the United Kingdom and India require CSR disclosures and spending. Critically, CSR is now a competitive differentiator, helping firms manage risk, build stakeholder trust, and secure the social license to operate in a rapidly changing world. CSR in practice, covers a wide spectrum of activities. Many companies implement philanthropy, donating to charity or supporting education,