Corporate Social Responsibility (CSR) promotes the idea that businesses have a duty to serve society in some way as well as delivering financial interest to the stockholders. Hence, the goal of every firm is to maintain viability through long-run profitability but at the same time, it puts in thought to serve the society in one way or another.
Until all costs and benefits are accounted for, profits may not be claimed but when a firm adheres to its social responsibilities, the government may cut it some slack when it comes to taxation.
In the case of corporate social responsibility, costs and benefits are both economic and social. While economic costs and benefits are easily quantifiable, social costs and benefits are not. Managers, therefore, risk subordinating social consequences to other performance results that can be more straightforwardly measured.
Types of CSR
Four of these responsibilities are seen to be major ones asked the corporations to have -
- Environmental Responsibility
- Ethical Responsibility
- Philanthropic Responsibility
- Economic Responsibility
For example, if an internet service provider company decides to run a tree-planting campaign to fight climate change, it would count as one of its CSRs fulfilled and that should bring a feeling of accomplishment to them.
Use of the Term in Sentences
- Corporate social responsibilities are often seen as selfless acts that businesses invest in from their sense of responsibility towards society but that may not be completely true.
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