Corporate social responsibility is a figure of business self-regulation incorporated into a business model. CSR policy functions as a built-in, self-regulating mechanism whereby a business monitors and ensures its active compliance with the spirit of the law, ethical standards, and international norms. CSR is a process with the aim to embrace responsibility for the company’s actions and encourage a positive impact through its activities on the environment, consumers, employees, communities, stakeholders and all other members of the public sphere who may also be considered as stakeholders.
There are four main parts to CSR fig 1:
|Economic |Responsibility to earn profit for owners | |Legal |Responsibility to comply with the law | |Ethical |Not acting just for profit, but doing what is right, just and fair | |Voluntary and philanthropic |Promoting human welfare and goodwill | | |Being a good corporate citizen contributing to the community and quality of life |
There are many substitute definitions of CSR. Examples of two are firstly An responsibility, beyond that mandatory by the law, for a business to follow long term objectives that are excellent for society.
Secondly concerning how a business administer its business to create an overall constructive impact on the general public
So in a brief social responsibly corporate involves
• Conducting business in an ethical way and in the interests of the wider community • Responding positively to emerging societal priorities and expectations • A compliance to take action ahead of regulatory confrontation • Balancing shareholder interests against the interests of the wider community • Being a good citizen in the area