Read and translate the texts and learn terms from the Essential Vocabulary.
People, Planet and Profit
Corporate social responsibility (CSR) refers to a company’s obligation to be sensitive to the needs of all its stakeholders in its business operations. The principle is closely linked with the imperative of ensuring that these operations are «sustainable». ‘Sustainable development’ was defined by the 1987 Brundtland Commission as development that «meets the needs of the present generation without compromising the ability of the future generation to meet their own needs.» In other words, meeting the goals of sustainable development means searching for development paths that permit decoupling of economic growth from environmental degradation.
Today’s heightened interest in the proper role of businesses in society has been promoted by increased sensitivity to environmental and ethical issues. In some countries government regulation of environmental and social issues has increased, and standards and laws are also often set at a supranational level (e.g. by the European Union).
It is important to distinguish CSR from charitable donations and «good works». Corporations have often spent money on community projects, the endowment of scholarships, and the establishment of foundations. They have also encouraged their employees to take part in community work thus enhancing the reputation of the company and strengthening its brand.
CSR goes beyond charity and requires that a responsible company will take into account the impact on all stakeholders and on the environment when making decisions. This holistic approach to business regards organizations as being full partners in their communities, rather than being primarily in business to make profits and serve the needs of their shareholders.
