Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public. CSR aims to ensure that companies conduct their business in a way that is ethical. This means taking account of their social, economic and environmental impact, and consideration of human rights. It can involve a range of activities such as: Working in partnership with local communities.
CSR goes beyond earning money for shareholders. It’s concerned with protecting the interests of all stakeholders, such as employees, customers, suppliers, and the communities in which businesses operate. Examples of CSR include adopting humane employee practices, caring for the environment, and engaging in philanthropic endeavors. Some people contend that companies owe no duty to society outside making as much money as possible within the law. But those who support Corporate Social Responsibility believe that companies should pursue a deeper purpose beyond simply maximizing profits.
Corporate social responsibility (CSR) is a self-regulating business model that helps a company be socially accountable—to itself, its stakeholders, and the public. CSR aims to ensure that companies conduct their business in a way that is ethical. This means taking account of their social, economic and environmental impact, and consideration of human rights. It can involve a range of activities such as: Working in partnership with local communities.
CSR goes beyond earning money for shareholders. It’s concerned with protecting the interests of all stakeholders, such as employees, customers, suppliers, and the communities in which businesses operate. Examples of CSR include adopting humane employee practices, caring for the environment, and engaging in philanthropic endeavors. Some people contend that companies owe no duty to society outside making as much money as possible within the law. But those who support Corporate Social Responsibility believe that companies should pursue a deeper purpose beyond simply maximizing profits.
ESG criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. ESG investing considers how a company’s adherence – or lack thereof – to these standards might affect its performance on the market. ESG investors want to support companies that treat their employees, suppliers, and communities well. This might include diverse hiring practices, humane (or no) animal testing, and volunteering in the community. Lastly, Environmental, Social, and Governance investors typically care about ESG factors like a corporation’s leadership practices: C-suite pay and bonuses, shareholder rights, and financial transparency are often included in this area.