Search Investopedia

Corporate Social Responsibility

Filed Under » , , ,
Dictionary Says

Definition of 'Corporate Social Responsibility'

Corporate initiative to assess and take responsibility for the company's effects on the environment and impact on social welfare. The term generally applies to company efforts that go beyond what may be required by regulators or environmental protection groups.  

Corporate social responsibility may also be referred to as "corporate citizenship" and can involve incurring short-term costs that do not provide an immediate financial benefit to the company, but instead promote positive social and environmental change.   
Investopedia Says

Investopedia explains 'Corporate Social Responsibility'

Companies have a lot of power in the community and in the national economy. They control a lot of assets, and may have billions in cash at their disposal for socially conscious investments and programs. Some companies may engage in "greenwashing", or feigning interest in corporate responsibility, but many large corporations are devoting real time and money to environmental sustainability programs, alternative energy/cleantech, and various social welfare initiatives to benefit employees, customers, and the community at large.  

Related Definitions

  •

    Social Responsibility

    The principle that companies should contribute to the welfare of society and not be solely devoted to maximizing profits.
    Read More »

  • Green Economics

    A methodology of economics that supports the harmonious interaction between humans and nature and attempts to meet the needs of both simultaneously. The green economic theories encompass ...
    Read More »

  • Social Capital

    An economic idea that refers to the connections between individuals and entities that can be economically valuable. Social networks that include people who trust and assist each other ...
    Read More »

    • Pigovian Tax

      A special tax that is often levied on companies that pollute the environment or create excess social costs, called negative externalities, through business practices. In a true market ...
      Read More »

    • Green Fund

      A mutual fund or other investment vehicle that will only invest in companies that are deemed socially conscious in their business dealings or directly promote environmental ...
      Read More »

    • Governance, Risk Management and Compliance - GRC

      An integrated approach used by corporations to act in accordance with the guidelines set for each category. Governance, risk management and compliance (GRC) is not a single activity, but ...
      Read More »

    • Water Quality Improvement Act Of 1970

      Legislation that expanded the federal government’s authority over water quality standards and water polluters. The Water Quality Improvement Act Of 1970 grew out of the 1948 Federal ...
      Read More »

Articles Of Interest

Sponsored links
Hot Definitions
Partner Links
Suggested Definitions