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Corporate social responsibility

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Corporate Social Responsibility[1], commonly referred to as CSR, is a business model that encourages companies to consider their impact on society and the environment in all aspects of their operation. It is a concept that has evolved and matured since the 1960s, encompassing not only economic and legal considerations but also ethical and philanthropic ones. CSR involves businesses voluntarily going beyond what the law requires to improve their social and environmental performance. This can range from reducing their carbon footprint to engaging in charitable work. However, CSR is more than just charity; it involves integrating these considerations into the business model. The implementation of CSR can lead to enhanced consumer[3] loyalty[4], improved reputation[2], and potentially increased long-term profits. It’s essential to note that CSR initiatives vary globally due to regional consumer preferences and different governmental regulations. Despite criticisms about its effectiveness and concerns of it being used as a smokescreen, CSR remains a significant aspect of modern business practices. It’s verified through various industry resources and often forms part of the company’s reporting to stakeholders.

Terms definitions
1. Corporate social responsibility ( Corporate Social Responsibility )
1 Corporate Social Responsibility, commonly referred to as CSR, is a business model that encourages companies to consider their impact on society and the environment in all aspects of their operation. It is a concept that has evolved and matured since the 1960s, encompassing not only economic and legal considerations but also ethical and philanthropic ones. CSR involves businesses voluntarily going beyond what the law requires to improve their social and environmental performance. This can range from reducing their carbon footprint to engaging in charitable work. However, CSR is more than just charity; it involves integrating these considerations into the business model. The implementation of CSR can lead to enhanced consumer loyalty, improved reputation, and potentially increased long-term profits. It's essential to note that CSR initiatives vary globally due to regional consumer preferences and different governmental regulations. Despite criticisms about its effectiveness and concerns of it being used as a smokescreen, CSR remains a significant aspect of modern business practices. It's verified through various industry resources and often forms part of the company's reporting to stakeholders.
2 Corporate Social Responsibility, commonly referred to as CSR, is a business model that encourages companies to consider their impact on society and the environment in all aspects of their operation. It is a concept that has evolved and matured since the 1960s, encompassing not only economic and legal considerations but also ethical and philanthropic ones. CSR involves businesses voluntarily going beyond what the law requires to improve their social and environmental performance. This can range from reducing their carbon footprint to engaging in charitable work. However, CSR is more than just charity; it involves integrating these considerations into the business model. The implementation of CSR can lead to enhanced consumer loyalty, improved reputation, and potentially increased long-term profits. It's essential to note that CSR initiatives vary globally due to regional consumer preferences and different governmental regulations. Despite criticisms about its effectiveness and concerns of it being used as a smokescreen, CSR remains a significant aspect of modern business practices. It's verified through various industry resources and often forms part of the company's reporting to stakeholders.
2. reputation. Reputation refers to the general belief or opinion that people hold about the character, quality, or standing of a person or organization. In the context of businesses, reputation can be seen as a reflection of a company's identity, often signaled through strategic actions. It influences perceptions and behaviors among competitors, stakeholders, and the general public. Reputation can be gauged through various metrics including rankings in business magazines and online platforms. Effective management of reputation, often done through public relations and social media monitoring, plays a crucial role in maintaining a positive image. A good reputation can yield numerous benefits such as increased customer loyalty, trust, and financial gain. In the digital age, managing online reputation has also become essential, as perceptions formed online can significantly impact a company's overall reputation.

Corporate social responsibility (CSR) or corporate social impact is a form of international private business self-regulation which aims to contribute to societal goals of a philanthropic, activist, or charitable nature by engaging in, with, or supporting professional service volunteering through pro bono programs, community development, administering monetary grants to non-profit organizations for the public benefit, or to conduct ethically oriented business and investment practices. While once it was possible to describe CSR as an internal organizational policy or a corporate ethic strategy similar to what is now known today as Environmental, Social, Governance (ESG); that time has passed as various companies have pledged to go beyond that or have been mandated or incentivized by governments to have a better impact on the surrounding community. In addition, national and international standards, laws, and business models have been developed to facilitate and incentivize this phenomenon. Various organizations have used their authority to push it beyond individual or industry-wide initiatives. In contrast, it has been considered a form of corporate self-regulation for some time, over the last decade or so it has moved considerably from voluntary decisions at the level of individual organizations to mandatory schemes at regional, national, and international levels. Moreover, scholars and firms are using the term "creating shared value", an extension of corporate social responsibility, to explain ways of doing business in a socially responsible way while making profits (see the detailed review article of Menghwar and Daood, 2021).

Employees of a leasing firm taking time off their regular jobs to build a house for Habitat for Humanity, a non-profit that builds homes for needy families using volunteers.

Considered at the organisational level, CSR is generally understood as a strategic initiative that contributes to a brand's reputation. As such, social responsibility initiatives must coherently align with and be integrated into a business model to be successful. With some models, a firm's implementation of CSR goes beyond compliance with regulatory requirements and engages in "actions that appear to further some social good, beyond the interests of the firm and that which is required by law".

Furthermore, businesses may engage in CSR for strategic or ethical purposes. From a strategic perspective, CSR can contribute to firm profits, particularly if brands voluntarily self-report both the positive and negative outcomes of their endeavors. In part, these benefits accrue by increasing positive public relations and high ethical standards to reduce business and legal risk 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. From an ethical perspective, some businesses will adopt CSR policies and practices because of the ethical beliefs of senior management: for example, the CEO of outdoor-apparel company Patagonia, Inc. argues that harming the environment is ethically objectionable.

Proponents argue that corporations increase long-term profits by operating with a CSR perspective, while critics argue that CSR distracts from businesses' economic role. A 2000 study compared existing econometric studies of the relationship between social and financial performance, concluding that the contradictory results of previous studies reporting positive, negative, and neutral financial impact were due to flawed empirical analysis and claimed when the study is properly specified, CSR has a neutral impact on financial outcomes. Critics have questioned the "lofty" and sometimes "unrealistic expectations" of CSR, or observed that CSR is merely window-dressing, or an attempt to pre-empt the role of governments as a watchdog over powerful multinational corporations. In line with this critical perspective, political and sociological institutionalists became interested in CSR in the context of theories of globalization, neoliberalism, and late capitalism.

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