What is Corporate Social Responsibility (CSR)

CSR is defined as "The way a corporation achieves a balance among its economic, social, and environmental responsibilities in its operations so as to address shareholder and other stakeholder expectations." (Sexty, pg 139) Even though this is no set definition, CSR is often described as a voluntary responsibility. There is no one-size fits all method in determining your CSR.

The basic objectives of business is to develop, produce and supply goods and services to customers. Astute entrepreneurs often demonstrate an almost intuitive understanding of the synergies that create success. The skills of company owners, together with relationships maintained with stakeholders are always vital if companies are to be run well and developed with a view to the future.

Good Relations Lead to Profitability

Long-term survival of companies is partly dependent on maintaining relationships of trust. Society's values and levels of knowledge are reflected in companies' activities and companies are judged according to current standards. Companies must adopt and change practices according to these norms. It is very much in the interests of any company to be a good corporate citizen. Companies will have more success at achieving this if they have clear objectives and goals set and are able to move those benchmarks according to society's demands.

Unfortunately, companies who do not value society's demands are often the targets of strong criticism. The efforts the company puts into building trust amongst their stakeholders will maintain commitment and continued success.

So how far should corporate responsibility stretch? Do companies have broad responsibility for conditions in the community, or should this responsibiltiy be limited to issues relating directly to their own operations? How much is enough towards extending your donations to charitable organizations? How do you choose?