Key Term

What is Corporate Social Responsibility?

Definition

Corporate Social Responsibility (CSR) refers to a business model that holds companies accountable for their impact on society and the environment. It encompasses voluntary initiatives and practices that companies implement to contribute positively to society, including charitable giving, environmental sustainability efforts, ethical business practices, and community engagement programs.

Significance

CSR plays a crucial role in modern philanthropy as it represents a shift from traditional individual giving to systematic corporate involvement in addressing social issues. It enables companies to leverage their resources, expertise, and influence to create meaningful social impact while building stronger relationships with stakeholders. Through CSR initiatives, businesses can strategically align their charitable giving with their corporate values, enhance their reputation, boost employee engagement, and create sustainable positive change in communities while potentially benefiting from tax incentives and improved brand loyalty.