Social Responsibility

Ethics and corporate social responsibility (CSR) are closely related, as being socially responsible means going beyond legal and economic obligations to do the right things by acting in ways that benefit society. CSR is an umbrella term for exploring the responsibilities of business and its role in society. CSR has been in the news constantly for the past several years.
What is corporate social responsibility, and what do managers need to know about it? The concept is based on the belief that companies have some responsibilities to society beyond that of making profits for the shareholders. CSR is about doing good and doing no harm and relationships with stakeholders. So corporate social responsibility is the concept that organizations have a duty to all societal stakeholders to operate in a manner that takes each of their needs into account. In other words, companies need to look at their effects on society and all corporate stakeholders, not just shareholders.
They must provide employees with safe working conditions and with adequate pay and benefits. Companies must provide safe products and services to customers. For society, the company should improve the quality of life, or at least not destroy the environment. The company must compete fairly with competitors and work with suppliers in a cooperative manner. It must abide by the laws and regulations of government. At the same time, the company must provide shareholders with a reasonable profit.