Page 2: What is CSR?
Businesses need to acknowledge and respond to factors in their environment, for example, changes in available workforce or the business’ impact on its local communities. Corporate social responsibility represents the responsibility that a business has towards all its stakeholders, not just to owners or shareholders, to deal with their needs fairly.
Internal stakeholders include shareholders and employees. Shareholders want a return on their capital and this depends on making a profit. That in turn means by adding value. Employees want job security, good pay and conditions and job satisfaction.
External stakeholders include customers, suppliers, non-governmental organisations, workers and the local communities where its products are made. All of these have different needs.
An organisation therefore needs to be able to respond and demonstrate responsibility in different ways. This might include activities as wide-ranging as encouraging employees to volunteer in community projects; sponsoring and supporting charity work; or contributing time and money to improving its environmental impact.