What is the definition of corporate social responsibility (CSR)?

Corporate social responsibility (CSR) is best defined as a business model that emphasizes a company’s duty to be socially accountable not only to its shareholders but also to a wider array of stakeholders, which include employees, customers, suppliers, the community, and even the environment. This concept encourages businesses to consider the social, environmental, and economic impacts of their activities and decisions, thus promoting a sustainable approach that strives for a balance between profit and ethical obligations.

When companies integrate CSR into their operations, they demonstrate a commitment to conducting business in a way that is ethical and beneficial to society. This can include initiatives like sustainable business practices, community engagement, and transparency in operations, which ultimately enhance the company’s reputation and stakeholder trust.

The other options focus on different aspects of business strategy and ethics. A business strategy focused solely on maximizing shareholder value implies a narrow focus that may ignore broader societal impacts. A regulatory framework for ethical practices suggests an imposed set of rules, while CSR is more about voluntary commitment to ethical conduct. A marketing strategy aimed at improving brand image reduces CSR to a superficial effort to enhance marketing rather than a comprehensive approach to corporate ethics and stakeholder engagement.