Corporate Social Responsibility

AAA

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 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 TERMS
  1. Corporate Accountability

    The performance of a publicly traded company in non-financial ...
  2. Water Quality Improvement Act Of ...

    Legislation that expanded the federal government's authority ...
  3. Governance, Risk Management and ...

    An integrated approach used by corporations to act in accordance ...
  4. Social Capital

    An economic idea that refers to the connections between individuals ...
  5. Green Economics

    A methodology of economics that supports the harmonious interaction ...
  6. Pigovian Tax

    A special tax that is often levied on companies that pollute ...
Related Articles
  1. The Green Marketing Machine
    Fundamental Analysis

    The Green Marketing Machine

  2. Green Bonds: Fixed Returns To Fix The ...
    Bonds & Fixed Income

    Green Bonds: Fixed Returns To Fix The ...

  3. Clean Or Green Technology Investing
    Investing

    Clean Or Green Technology Investing

  4. Evaluating A Company's Management
    Active Trading Fundamentals

    Evaluating A Company's Management

comments powered by Disqus
Hot Definitions
  1. Effective Annual Interest Rate

    An investment's annual rate of interest when compounding occurs more often than once a year. Calculated as the following: ...
  2. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
  3. Odious Debt

    Money borrowed by one country from another country and then misappropriated by national rulers. A nation's debt becomes odious ...
  4. Takeover

    A corporate action where an acquiring company makes a bid for an acquiree. If the target company is publicly traded, the ...
  5. Harvest Strategy

    A strategy in which investment in a particular line of business is reduced or eliminated because the revenue brought in by ...
  6. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
Trading Center