Corporate Social Responsibility (CSR)

Corporate Social Responsibility (CSR) describes the social responsibility of a company and goes beyond mere compliance with legal requirements. The focus is on the company's voluntary commitment to making a positive contribution to society and the environment. CSR goes beyond the traditional objective of profit maximization and encompasses ethical conduct towards stakeholders, society, the environment and the global economy. Corporate Social Responsibility (CSR) is not a binding guideline, but a concept that companies can use as a guide to consciously commit to higher standards.

What does CSR mean?

Corporate Social Responsibility (CSR) means that companies voluntarily take measures to ensure that their business practices social, ecological and economic standards in their in their business practices.

It is important that corporate social responsibility (CSR) is anchored holistically within the company and has a clear connection to its own business activities. This includes the following aspects:

• fair working conditions, 
• Environmental protection, 
• Energy efficiency
• ethical behavior 
• and contributions to the common good

Why is Corporate Social Responsibility (CSR) important?

CSR plays a crucial role in sustainable development as it encourages companies to operate in a way that is beneficial to both society and the environment in the long term. 

The companies themselves also benefit from corporate social responsibility (CSR):

• Improved reputation
• Increased employee commitment and satisfaction
• Risk management
• Opening up new markets
• Promotes trust in consumers
• Strengthened relationship between company and society

Corporate responsibility (CR), corporate citizenship vs. corporate social responsibility (CSR)

In recent years, many companies have increasingly used the term Corporate Responsibility (CR) as a substitute for CSR. CR focuses more on economic responsibility and corporate governance. Corporate social responsibility (CSR) is often reduced to the social dimension of sustainability, which can lead to misunderstandings.

Corporate citizenship refers to a company's commitment as a "good citizen" in society. It is about assuming responsibility beyond the legal requirements by actively supporting social, ecological and economic initiatives that promote the common good. This often involves donations or sponsorship.

Corporate Social Responsibility (CSR) in Germany and the EU

In Germany and within the European Union (EU), corporate social responsibility (CSR) is a high priority. To this end, the EU has developed various guidelines and framework conditions for corporate social responsibility (CSR) in order to transparently implement sustainability in the economy. The European Commission initiated a paradigm shift in 2011 with the communication"A new EU strategy (2011-14) for corporate social responsibility (CSR)". It defined CSR as the responsibility of companies for their social impact and emphasized the element of voluntariness.

The Corporate Sustainability Reporting Directive (CSRD) goes one step further: with the new directive, almost 49,000 companies across Europe will be obliged to report on their sustainability activities from 2025. The same applies to the Corporate Sustainability Due Diligence Directive (CSDD). The supply chain legislation initiative obliges European companies to implement due diligence obligations. The aim is to prevent negative impacts on human rights and the environment in their global value chains.

In addition to the European guidelines, Germany has its own national CSR strategy and a CSR award that recognizes outstanding companies for assuming their social responsibility.‍

What are examples of CSR measures?

Corporate social responsibility (CSR) can be reflected in a variety of different measures. Each company must decide for itself which areas to focus on. The CSR model does not prescribe any fixed recommendations. Possible CSR measures for companies include, for example

• Social projects to support disadvantaged groups
• Measures against corruption and bribery
• Health programs for employees
• Implementing equality and diversity
• Promotion of renewable energies
• Selection of suppliers with high environmental standards
• Use of local public transport