Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) means a business takes responsibility for how its work affects people and the environment, not just for making profits.

• What CSR looks like in practice: reducing pollution and waste, using resources carefully, improving worker safety, and supporting the local community (for example, education, health, or clean water projects).
• Why it matters: companies use land, water, minerals, and labour; CSR pushes them to protect these resources and treat people fairly so development does not harm society.
• CSR is not charity alone: donating money can be part of CSR, but real CSR also means changing business practices—like treating factory waste, saving energy, or ensuring safe working conditions.
• India’s CSR law (2014): India became the first country to make CSR spending legally required for certain companies, asking them to spend 2% of their average net profits (of the last three years) on CSR activities.
• A concrete example: a factory that could pollute a river can show CSR by installing proper waste-treatment systems and also funding river-cleanup or community health programs in nearby villages.
• Bigger idea: CSR connects business to the idea of sustainable development—meeting today’s needs while protecting the ability of future generations to meet theirs.