Corporate Social Responsibility (from the Elsevier Reference Module in Social Sciences)

Corporate social responsibility (CSR) is perceived as a valuable practice by business organizations to demonstrate their commitment towards social, economic, and environmental causes, and it actively contributes towards the well-being of the community at large. CSR as an ethical practice has gained considerable attention in the last decades as it contributes to sustainable development and maximizing organizations business performance. It reflects the top management’s vision and values and thereby also allows the firm to differentiate itself from its competitors. It leads to enhancing the corporate brand image among customers and various stakeholders of the business. Also, consumers tend to respect the brands more as they learn about their CSR initiatives. Businesses view Corporate Social Responsibility (CSR) as a crucial strategy integral to achieving sustainable growth and fostering inclusivity within society. Nevertheless, there are varied discussions regarding a company׳s dedication to adopting CSR initiatives. This chapter highlights the origin, definitions, stakeholder involvement, the implementation of CSR, diverse perspectives on CSR governance, and the government׳s role in mandating CSR policies. Finally, the chapter concludes by summarizing potential future developments in this realm.