Corporate social responsibility (CSR) refers to a business practice that involves participating in initiatives that benefit society. It is a corporation’s initiatives to assess and take responsibility for the company’s effects on environmental and social wellbeing.
CSR policy functions as a self-regulatory mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards and national or international norms. A firm’s implementation of CSR goes beyond compliance and engages in actions that appear to further some social good, beyond the interests of the firm and that which is required by law. The aim is to increase long-term profits through positive public relations, high ethical standards to reduce business and legal risk, and shareholder trust by taking responsibility for corporate actions. CSR strategies encourage the company to make a positive impact on the environment and stakeholders including consumers, employees, investors, communities, and others.
CSR is about how companies manage the business processes to produce an overall positive impact on society.