Corporate social responsibility (CSR) is a business ethics principle that considers social and environmental impacts alongside financial profitability when making decisions and setting company goals. Implementing CSR principles can take different forms; in some cases, companies may embed these goals in their operations, for example by selling environmentally beneficial products or by incorporating sustainability into their supply chains. In other cases, companies may reinvest their profits into local charities or other initiatives that are aligned with their values.
Regardless of how it is pursued, CSR is important not just because it is “the right thing to do,” but because it is good for business. By focusing on a social return on investment (SROI), organizations can foster environmental sustainability and social justice while attracting customers and employees with the same values. And, as the costs of societal challenges such as climate change, discrimination, and poverty become more evident, interest in socially responsible investing has also grown - and many investors are beginning to look to CSR metrics as a proxy for good overall corporate management.