Corporate Social Responsibility

Corporate social responsibility (CSR) is when companies integrate social and environmental concerns into their business operations and in their interaction with their stakeholders on a voluntary basis.

Some reasons why firms are embracing CSR:

1. Altruism – being a good citizen
2. Contracting benefits – e.g. helps recruit, motivate and retain employees
3. Customer-related motivation: attract customers; brand positioning
4. Lower production costs (packaging, energy usage)
5. Risk management – address potential legal or regulatory action
6. Improved access to capital – for example, the rise ethical investment funds looking to make equity investments in companies with strong CSR reputations