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Corporate social responsibility (CSR) is a company’s responsibility for its effects on society and the environment. It means identifying and addressing impacts connected with the business—not simply donating to charity or promoting a positive image. CSR can guide a company’s decisions and practices, while any legal reporting or due-diligence duties depend on the laws that apply and whether the company falls within their scope.
What does corporate social responsibility cover?
The European Commission defines CSR as “the responsibility of enterprises for their impact on society.” That impact can arise from a company’s own operations, products and services, as well as its supply chain. Relevant issues include working conditions, human rights, health, the environment, innovation, education and training. The Commission says companies should prevent, manage and mitigate negative impacts, including those connected to global supply chains. European Commission: Corporate sustainability and responsibility
CSR therefore reaches beyond charitable giving. A donation may be one activity a business undertakes, but it does not by itself show how the company handles workplace conditions, environmental effects or risks linked to suppliers.
CSR, responsible business conduct and ESG: what is the difference?
The European Commission uses “corporate social responsibility” and “responsible business conduct” (RBC) for closely related approaches. RBC means contributing positively to economic, environmental and social progress while avoiding and addressing adverse impacts connected to an enterprise’s direct and indirect operations, products or services. European Commission: Corporate sustainability and responsibility
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ESG stands for environmental, social and governance. The terms overlap, but they tend to answer different questions: CSR describes a company’s responsibility and the practices it adopts, while ESG is often a set of criteria used to assess a company or investment. ESG is especially common in investing, though customers, suppliers and employees also have an interest in a company’s sustainability.
How can a company put CSR into practice?
A meaningful approach connects stated commitments to the company’s actual impacts. ISO 26000:2010, which ISO says was reviewed and confirmed in 2025, offers guidance to organizations of all types, sizes and locations. It covers social responsibility principles and practices, core subjects and issues, integration into organizational policies and practices, stakeholder engagement, and communication about commitments and performance. ISO 26000:2010 — Guidance on social responsibility
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To assess whether a company’s CSR approach is substantive, look for evidence that it:
- Identifies its significant effects on people and the environment.
- Sets goals and describes practices intended to address those effects.
- Considers impacts in its supply chain as well as in its direct operations.
- Engages people affected by its decisions.
- Reports progress in a way readers can evaluate, rather than relying only on broad promises.
ISO 26000 is guidance, not a requirements standard for certification. ISO says it “cannot be certified to”; organizations can use it to clarify their responsibilities and translate principles into action. ISO describes going beyond legal compliance as an aim of the guidance, while noting that obeying the law is a fundamental duty. ISO 26000:2010 — Guidance on social responsibility
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CSR is a broad approach to responsible business, but related reporting and due-diligence obligations can be mandatory. The applicable rules depend on jurisdiction and company scope; EU requirements should not be treated as rules for every country.
EU sustainability reporting
The European Commission says EU rules require large and listed companies within scope to report on social and environmental risks and on how their activities affect people and the environment. The first companies subject to the Corporate Sustainability Reporting Directive (CSRD) applied the rules to financial year 2024, with reports published in 2025. This does not mean every business is covered. European Commission: Corporate sustainability reporting
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EU supply-chain due diligence
The Corporate Sustainability Due Diligence Directive entered into force on 25 July 2024. The Commission also identifies later amendments, including Directive (EU) 2025/794 and Directive (EU) 2026/470. Because the rules have been amended, the original timetable should not be assumed to be current; businesses need to check the law in force and whether its scope applies to them. European Commission: Corporate sustainability due diligence
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.What do CSR disclosures and assurance tell you?
A published sustainability report is evidence of disclosure, not automatic proof that every statement is accurate or complete. Check what the company measured, which operations or suppliers its figures cover, and whether an external party assured the information—and at what level.
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In its 2025 reporting on 2024 data, the OECD said sustainability-related disclosures covered 91% of global market capitalization. It also reported that more than 5,000 companies—representing 81% of market capitalization—had sustainability-related information with external assurance. The OECD separately reported limited assurance for 56% of market capitalization and reasonable assurance for 17%; these are different assurance levels, not figures to add together or counts of companies. OECD: Corporate Sustainability Reporting and Assurance 2024
How should you compare companies’ CSR claims?
There is no universal ranking method in these frameworks, but the following questions can help you compare what companies disclose:
- Impacts: Which effects on people and the environment does the company address?
- Coverage: Does it discuss both direct operations and supply-chain impacts?
- Targets and progress: Are goals and results measurable, with enough detail to assess progress?
- Stakeholders: Does the company explain how it engages people affected by its decisions?
- Assurance: Is the information externally assured, and does the company identify the assurance level and scope?
These questions help distinguish specific, assessable information from general commitments; they do not produce a standardized score across companies.
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