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by Corporate Social Responsibility (CSR)
27 November 2024

Corporate Social Responsibility (CSR)

CSR refers to the wide range of activities that companies take to address social and environmental needs. CSR can include: 

  • Corporate philanthropy—donations or grants usually given to existing accredited social delivery organizations (SDOs). 
  • Technology transfer—the deployment of employee skills and experiences to build the capacity of local nonprofit organizations. 
  • Pro bono goods and services—the provision of goods and services made or offered by a firm to a local group at no cost. 
  • Volunteering—the creation of opportunities for employees to spend time helping to address a community need. 
  • “DIY” philanthropy—utilization of corporate systems and expertise to address a community need without necessarily working through a third- party SDO. 

In several Asian economies, businesses are mandated to engage in CSR, and two economies (India and Nepal) require companies to spend a certain amount of their profits on CSR activities. India was one of the first economies in the world to enshrine corporate giving into law, stipulating that businesses that make more than a certain amount must contribute 2% of their profit toward activities that benefit the community and/or the environment. These companies must also set up a CSR committee to oversee progress on CSR-related activities. 

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