Corporate Social Responsibility (CSR) and Corporate Social Performance (CSP)

[Page 746]The concept of corporate social responsibility (CSR) refers to the general belief that modern businesses have a responsibility to society that extends beyond that to the stockholders or investors in the firm. Businesses typically think of their responsibility to the owners. But the CSR concept extends this responsibility to other societal stakeholders as well, which typically includes consumers, employees, the community at large, government, and the natural environment. The CSR concept applies to organizations of all sizes, but discussions tend to focus on large organizations because they tend to be more visible and have more power. And, as many have observed, with power comes responsibility.

A related concept is that of corporate social performance (CSP). CSP is an extension of the concept of CSR that ...