What does Corporate Social Responsibility (CSR) focus on?

Corporate Social Responsibility (CSR) emphasizes the importance of balancing the interests of various stakeholders, which includes not only shareholders but also employees, customers, suppliers, communities, and the environment. By considering the broader impacts of business decisions, companies can create sustainable practices that benefit both society and the organization.

The core idea behind CSR is that a business's responsibilities extend beyond profit maximization to include ethical practices, social equity, and environmental stewardship. This approach fosters trust and loyalty among stakeholders, ultimately supporting long-term business success and sustainability.

While legal compliance is an important aspect of CSR, it is just one component and does not encompass the full scope of responsibilities a company may have toward its stakeholders. Similarly, focusing solely on maximizing profits or minimizing operational costs neglects the potential social and environmental repercussions of business activities, which CSR aims to address through a more holistic and inclusive framework.