What is Corporate Social Responsibility?

Corporate social responsibility (CSR) is a strategic management concept of combining social and environmental initiatives with a business’s economic goals. CSR can refer to any effort to support fair, ethical, and sustainable practices while reducing the adverse impact of the business on the world. In 1991, researcher Archie B. Carroll introduced the four main types of CSR:

– Environmental responsibility – Reducing carbon footprint and environmental impact to mitigate climate change and global warming
– Ethical responsibility – Adopting fair and ethical business practices
– Philanthropic responsibility – Donating a portion of the company’s profits, products, or services to charitable causes
– Financial responsibility – Financially investing in programs, donations, and product research to support the three types of CSR above

An effective CSR strategy can help an organization gain competitive advantages such as building a better brand image and reputation, attracting and retaining employees, and appealing to investors.