What is meant by Corporate Social Responsibility (CSR)?

Corporate Social Responsibility (CSR) refers to the voluntary initiatives taken by companies to address ethical concerns and contribute positively to society. This encompasses a wide range of activities, including sustainable practices, ethical labor policies, and contributions to community development.

Companies engaged in CSR often seek to operate in a socially responsible manner, ensuring that their business practices benefit not only their bottom line but also society at large. This might involve reducing environmental impact, supporting local communities, ensuring fair labor practices, and being transparent about their operations. CSR is fundamentally about businesses recognizing their role in society and choosing to act in a way that reflects ethical principles and social accountability.

This understanding of CSR sets it apart from mere compliance with regulations or profit-seeking without regard for ethics. Compliance is a legal requirement and does not encompass the broader ethical implications of a company's operations. Similarly, increasing profits through unethical methods contradicts the very essence of CSR, which emphasizes ethical behavior. Community service initiatives undertaken by employees, while beneficial, are just one aspect of CSR and do not cover the full scope of what CSR represents.