Figure 3.3
Employees often like to participate in volunteer activities through their employer. (Credit:
rawpixel/ pixabay/ License: CC0)
What Is Corporate Responsibility?
Corporate responsibility refers to the idea that a business is given the opportunity and privilege to make the
world a better place. This process can happen through a variety of methods, including the donation of funds,
volunteerism, and implementation of environmentally friendly policies. It is up to each organization to
determine the best way to demonstrate social responsibility.
While certainly not mandatory, corporate social responsibility has become a popular way for companies to
improve their image and promote causes they believe in at the same time. Corporate social responsibility may
involve focusing on the immediate community in which a company does business. However, there are some
organizations that take it a step further and focus on more widespread global issues. For example, the shoe
company TOMS has created a mission to make sure that every boy and girl in underprivileged countries has
proper footwear. Blake Mycoskie, CEO of TOMS, has created a complete business model around social
responsibility. Not stopping at shoes, the company now also helps with bringing fresh water to communities,
as well as making birth safer for babies in developing nations.
The popularity of corporate social responsibility has only increased as millennials and Generation Z employees
enter the workforce. Employees in these generations often care deeply about making a difference in the world
in which they work. Whether they are buying products from brands that give back or promoting a similar
activity in their own place of employment, the youngest of the workforce are making corporate social
responsibility a priority.
Where Did the Concept Originate?
Corporate social responsibility is not a new construct. One could go back hundreds of years and find examples
of corporate philanthropy and social support. However, the earliest published book about the topic is
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Chapter 3 Business Ethics and Social Responsibility
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