Definition
- Corporate social responsibility
- Corporate social responsibility is a firm choosing to take account of its workers, its community and the environment, beyond what the law requires, even at some cost to profit.
Example
Can you think of an example of corporate social responsibility?
A clothing firm pays its suppliers above the going rate and checks their factories for safety, raising its costs in return for a better reputation.
Test yourself
Can you name the five objectives a firm might pursue other than the most profit?