DEFINITION of 'Social Impact Statement'

A company's account of how its operations affect social and environmental factors in the communities where it operates. A social impact statement might detail a company's charitable giving and volunteer activities, the ways it is reducing its energy consumption, the benefits it provides to its workers and the jobs it has created in communities.

BREAKING DOWN 'Social Impact Statement'

Corporate social responsibility is a major concern of a vocal group of consumers. Because of this, companies feel compelled to publicize their social and environmental responsibility initiatives so that they will be perceived positively by the public. It is not enough for a company to sell products consumers want at prices they are willing to pay - companies are now expected to demonstrate that they care about more than just profits.

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  5. Why is social responsibility important to a business?

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