Corporate social responsibility (CSR) enables businesses to pay more attention to the needs of other stakeholders while in pursuit of their economic objectives of value and wealth creation.
Over the years, with increased focus by the media on CSR, many businesses have actively integrated social responsibility activities into their strategic plans. During and after the COVID-19 outbreak, we witnessed a spike in active participation in social responsibility by multinational organizations.
Some of the activities related to CSR include participating in welfare investment, charity, environmental protection, increasing health awareness, and developing science and technology. Environmental policies currently being enacted by countries across the world require that corporations ensure that their innovations are environmentally friendly going forward. This will significantly increase the interdependence between corporate green innovation and their long-term survival and, hence, long term financial performance.
Broadly speaking, CSR meets the needs of stakeholders, enhances and improves corporate reputation and financial status, and adds weight to the long-term survival of businesses in the market.