In the contemporary world, businesses are more than ever involved in the problems affecting communities. Social aspects and environmental outcomes have become particularly important for numerous organizations. As a result, companies do not only strive to gain a competitive advantage and generate profit but also implement responsible and accountable approaches. In particular, as defined by Agudelo et al. (2019), corporate social responsibility (CSR) refers to a business approach that delivers social, economic, and environmental benefits to all the company’s stakeholders. This paper aims to discuss corporate social responsibility as a critical subtopic of ethics and corporate governance.
Corporate social responsibility is crucial to contemporary organizations since it can benefit all stakeholders, including the company, employees, and communities. According to Agudelo et al. (2019), the “concept of Corporate Social Responsibility has evolved from being limited to the generation of profits to the belief that companies should focus on generating shared value” (p. 21). This business model is an integral part of the ethical framework implemented by sustainable and responsible companies that are marked by a consideration of the community, environment, society, and human rights. As reported by Agudelo et al. (2019), CSR is expected to involve an increase in “stakeholder engagement, prevalence and power of ethically sensitive consumers, … employees as a CSR driving-force” in the future (p. 22). As can be seen, this notion continues to expand, reflecting its importance for today’s organizations and workforce.
To conclude, corporate social responsibility is an integral approach to running a business that impacts various organizational processes and can benefit the workforce, environment, and a broader community. In the context of ethics and corporate governance, this subtopic is essential to discuss since it reflects organizations’ changing needs and priorities. As the global market economy changes, businesses across the world determine CSR as a core aspect of their operations and processes.
Agudelo, M. A. L., Jóhannsdóttir, L., & Davídsdóttir, B. (2019). A literature review of the history and evolution of corporate social responsibility. International Journal of Corporate Social Responsibility, 4(1), 1-23.