Final answer:
CSR, or Corporate Social Responsibility, is the firm's obligation to stakeholders, including customers, employees, suppliers, investors, and the communities surrounding the business. It involves actions and initiatives taken by a company to benefit these stakeholders, such as implementing sustainable practices and supporting local communities.
Step-by-step explanation:
CSR, or Corporate Social Responsibility, is a concept that suggests that businesses have an obligation to consider the interests and well-being of their stakeholders. Stakeholders include customers, employees, suppliers, investors, and the communities surrounding the business. CSR involves actions and initiatives taken by a company to benefit these stakeholders, such as implementing sustainable business practices, supporting local communities, and promoting diversity and inclusivity.
For example, a company practicing CSR might reduce its carbon footprint by using renewable energy sources and minimizing waste. It could also invest in employee training and development programs to enhance their skills and career growth. By engaging in philanthropic initiatives, such as donating to charities or volunteering in the community, a company shows its commitment to being socially responsible.
Adopting CSR practices can enhance a company's reputation, attract customers, and improve employee morale and loyalty. It also promotes long-term sustainability by considering the impact of business activities on the environment and society.