Beyond philanthropy: What exactly is CSR?

While the term ‘corporate social responsibility’ (CSR) might be relatively new in various parts of Asia and the Pacific, at least some elements of its practice date back a very long way. Philanthropic activity, for example, whether pursued by businesses or individuals, goes back many millennia. And that may explain in large part why a lot of companies and their executives wrongly perceive of CSR as comprising simply that – philanthropic ‘giving’. But, while philanthropy can be seen as one (fairly basic) component of CSR, it is certainly not the case that CSR is limited to philanthropy alone. CSR is something far greater than one-off acts of charitable giving by firms as part of a bid to be (or seen to be) a good corporate citizen, and perhaps with some additional marketing or public relations benefits. It can be an effective form of risk management, ensuring compliance with the social and environmental laws and regulations of the host country, and even a means of (shared) value creation for those companies willing to innovate.

Related Subject(s): Economic and Social Development