Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public.
Stakeholders to whom companies is socially responsible:
– Employees
– Shareholders
– Suppliers
– Customers
– Local Community
– Environment
CSR is a very broad concept that addresses many and various topics such as human rights, corporate governance, health and safety, environmental effects, working conditions and contribution to economic development. At the end it forces corporations to drive towards sustainability.
Benefits of CSR:
– Corporations perceived as ethically sound are rewarded with extra customers.
– Corporations which are ethically unsound are boycotted.
– Employees are more attracted to work for, and are more committed to, socially responsible companies.
– Voluntarily committing to social actions and programmers may forestall legislation and promote independence from government.
– Positive contribution to society may be a long-term investment in a safer, better educated and more equitable community creating a more stable context in which to do business.