Corporate social responsibility (CSR) is a business initiative designed to meet specific goals related to ethics, sustainability and social impact.
In practice, CSR means integrating social responsibility into everyday operations, from reducing pollution to supporting communities and championing human rights. When done well, it reinforces your company’s values, builds brand trust and helps you connect meaningfully with your employees, customers and communities.
This article explores the four main types of CSR initiatives: environmental, ethical, philanthropic and economic. We also cover additional areas where companies are driving impact, like diversity and inclusion and employee well-being, which are increasingly central to a responsible business.
You’ll also find real-world examples and practical tips to help your company grow its social impact. Read on to learn how each type of CSR can engage employees, strengthen your brand and make a positive social impact.
Corporate social responsibility explained
At its core, CSR is a voluntary commitment by businesses to help improve society while also generating profit.
CSR goes beyond compliance or charity by purposefully embedding social and environmental goals into its strategy. A company might, for example, pledge to cut emissions, create a donation matching plan or build an employee volunteer program, all of which demonstrate a company’s commitment to social impact.
This matters because stakeholders now expect it. When asked how purpose has impacted their career decisions, nearly half of millennial and Gen Z workers report that they’ve rejected a potential employer based on their ethics and beliefs. And even more say that they’ve left a job because it lacked purpose. Simply put, people want to work for companies that reflect their values.
The purpose of CSR is to build trust, inspire action and drive meaningful change. When companies engage their people and communities in these efforts, the result is a more loyal workforce, stronger brand reputation and a more sustainable future for everyone.
Check out our article on the benefits of corporate social responsibility to learn more.
4 core types of corporate social responsibility
CSR is typically sorted into four main categories, each addressing a different way businesses can contribute to a better world. From environmental sustainability to ethical labor practices, these pillars can help you focus your efforts, set meaningful goals and create lasting impact.
1. Environmental corporate responsibility
Environmental responsibility is a company’s commitment to minimizing its environmental impact and promoting sustainability through its operations.
More and more companies are embracing sustainable practices and pledging to consider their environmental impact at every stage of business, from reducing greenhouse gas emissions to eliminating single-use plastics. These efforts help organizations contribute to long-term environmental stewardship while also reflecting the values of employees and customers alike.
But environmental responsibility doesn’t stop at business operations; it also means empowering employees to take action. Encouraging volunteering, offering sustainability challenges or incentivizing green commuting are just a few ways companies can create a ripple effect that extends far beyond the workplace.
Case study: Nestlé Cares Cleanup
Nestlé demonstrated its commitment to environmental responsibility through a large-scale volunteer initiative held in conjunction with World Cleanup Day. Over 400 Nestlé Cares volunteers participated across six beach locations and two underwater sites in Malaysia, recovering 2 tons of waste from the country’s coastlines and oceans.
All collected materials were sent to specialized facilities for separating, recycling or safe disposal — meaning nothing ended up in landfills. The initiative also raised public awareness around marine pollution and responsible waste management and supported Nestlé’s broader goal of achieving plastic neutrality.
2. Ethical/human rights social responsibility
Ethical corporate responsibility means operating your business in a way that respects human rights and promotes fairness, equity and transparency. This can include everything from fair trade practices and equal pay to safe working conditions and anti-discrimination policies, both within your organization and throughout your value chain.
To champion ethical responsibility, many businesses will speak up in the name of human rights injustices such as child labor, racial or gender discrimination and the fight for a higher minimum wage. Ethical behavior isn’t just internal policies; it’s about holding your vendors, suppliers and partners to the same standards. When businesses lead with integrity, they help raise the bar for everyone they work with.
Case study: Glovo Cares Volunteer Week
Glovo built its global volunteer program around the belief that everyone deserves access to essential goods. Through their Global Volunteer Week, employees came together across seven countries and nine cities to support local food banks.
The result? They contributed over 700 volunteered hours globally, making a real difference for communities while connecting the initiative back to Glovo’s core business values.
Learn how Glovo achieved this by checking out the full case study here.
3. Philanthropic corporate responsibility
Philanthropic responsibility is about using your company’s resources to support the greater good. At its core, it’s a commitment to giving back, whether through direct donations from company earnings to worthy causes within the local community, or by setting up a corporate foundation or trust.
While financial giving is a cornerstone of corporate philanthropy, it’s even more powerful when paired with employee engagement. From donation matching to giving campaigns and volunteer grants, these initiatives not only support important causes but also help employees feel more connected to their work and their communities.
Case study: NatWest GivingTuesday campaign
For GivingTuesday, NatWest Group employees were invited to give their time and money to good causes. Alongside volunteer initiatives, they had the opportunity to donate money to one of 11 partner nonprofits, with the company matching contributions.
Through this initiative, the bank raised £425,000 in donations with an added £150,000 in donation matching.
4. Economic corporate responsibility
Economic responsibility means making financial decisions based on a commitment to doing good alongside business success.
Some common examples of economic responsibility include investing in and using alternative energy sources, putting more money into education programs or funding local charities to help support their mission. It’s about moving away from a profit-at-all-costs way of thinking to a more holistic view of creating value.
To uphold economic responsibility, business leaders are challenged to think past operational cost savings and instead put their obligation to corporate citizenship at the heart of their financial decisions.
Case study: Patagonia Fair Trade Certified™
Widely regarded as a leader in responsible business, Patagonia demonstrates its commitment to fair labor practices through its Fair Trade Certified™ apparel line.
For every item produced in a Fair Trade Certified™ factory, Patagonia pays a premium into a fund managed directly by the workers. These workers choose how to use the money, whether for community development projects or cash bonuses, so the benefits go directly to the people making the products.
This model empowers workers while aligning with Patagonia’s broader mission to use business as a force for environmental and social good: a clear example of economic responsibility in action.
Other types of corporate social responsibility
While the four core types of CSR provide a strong foundation, there are numerous other areas where corporations are going further and finding new ways to put people and equity at the center of how they do business.
Diversity, equity and inclusion (DEI)
Promoting diversity, equity and inclusion (DEI) is essential to building a socially responsible company.
That includes adopting inclusive hiring practices and recognizing a range of cultural awareness moments throughout the year. This can also look like creating safe spaces for employee resource groups (ERGs): voluntary, employee-led groups that foster belonging and advocate for underrepresented identities.
Encouraging employees to take part in DEI education and allyship — especially during moments like Black History Month, Pride and International Women’s Day — helps foster empathy, understanding and stronger teams.
🎧Want to explore how companies are building inclusive cultures? Check out this episode of our podcast:
Related reading: The State of Workplace DEI
Governance
There’s a close relationship between the systems that control and direct a business and being a socially responsible company.
Good governance benefits corporations and society as a whole. It ensures companies act transparently, ethically and in the best interest of all stakeholders. Governance practices can include everything from disclosing environmental and social metrics to embedding CSR initiatives into board-level strategy.
In some cases, governance also includes legal commitments to social good. For instance, certified B Corporations are legally required to consider the impact of their decisions on all stakeholders, not just shareholders.
Supply chain responsibility
Social responsibility doesn’t stop at your office doors. It extends across your entire ecosystem — from the materials you source to the partners you work with.
Building a responsible supply chain means holding your entire ecosystem to high standards. That includes choosing vendors and suppliers who are committed to ethical practices, sustainability and fair treatment at every step of the process.
When companies take responsibility for their supply chains, the impact is far-reaching: stronger communities, greater transparency and a more sustainable future.
🎧Want to learn more about the different types of CSR and how to choose the right approach for your business? CSR expert Nicole Campbell breaks it down in this podcast episode:
Employee well-being
Social responsibility starts with how a company treats its people. Prioritizing physical and mental well-being shows employees they are valued as whole people, not just workers.
Companies can support well-being by offering mental health resources, encouraging time off and launching inclusive wellness challenges, like step goals or meditation streaks, that invite everyone to participate.
Employee engagement
CSR is most powerful when it brings people together. Engaging employees in giving, volunteering and impact challenges builds purpose, boosts morale and creates a culture of Goodness.
Think sustainability campaigns, field volunteering days or employee-nominated giving opportunities. These are just a few ways companies can connect teams and make a tangible difference.
Learn why senior leaders are investing in CSR. Read The Executive CSR Report.
Why is corporate social responsibility important?
Over the past decade, the belief that businesses should help build a better world has moved from a nice-to-have to a business imperative. Today, this responsibility is a priority for companies of all sizes across industries, and not just because it’s the right thing to do.
People want to support brands that really stand for something. Consumers now expect transparency and a real plan of action. Employees crave connection and purpose. And investors understand the business impact of corporate citizenship.
That’s why a strong CSR program is essential, not only for customer and employee satisfaction, but also for strengthening your brand, attracting talent and improving long-term financial performance. Our 2025 State of Corporate Purpose Report found that 88% of leaders say their impact strategies are future-proofing their business.
Just as importantly, it builds real connections between your company and your communities, and between your people and the causes they care about.
It’s not just about meeting requirements around corporate governance; it's about standing for something and taking action to create real, lasting impact.
By implementing a CSR strategy, your company can inspire your people to contribute to the causes they care about in the name of your business. 🎧Want to learn more about what makes CSR efforts so important for your business?Check out this episode of our podcast:
What are the benefits of CSR initiatives?
Companies aren’t becoming socially responsible just to meet ethical requirements. The CSR benefits that come with these initiatives range from brand loyalty to employee engagement and long-term growth.
When a company implements a CSR strategy, it helps to:
- Increase employee engagement: People want to work for companies that care. CSR programs that include volunteering or giving opportunities help employees feel more connected and motivated.
- Improve bottom-line financials: Companies with strong CSR strategies often see higher profitability over time, thanks to improved reputation, customer loyalty and operational efficiencies.
- Support local and global communities: CSR efforts connect your company to causes that matter. Whether through donations, volunteering or community partnerships, these efforts create a meaningful impact.
- Contribute to the United Nations Sustainable Development Goals: Aligning CSR with the UN’s SDGs, like climate action, education or reduced inequalities, demonstrates long-term vision and global citizenship.
- Access investment opportunities: Investors increasingly evaluate companies based on their environmental, social and governance (ESG) performance. CSR can strengthen your position as a responsible business.
- Refine public image and create positive press: Socially responsible actions help your brand stand out and often lead to favorable media coverage and word-of-mouth recommendations.
- Boost customer retention and loyalty: Consumers are more likely to support brands that reflect their values. CSR builds emotional connection and trust over time.
- Enhance employer branding: A visible, authentic CSR program helps attract top talent and signals to potential hires that your company stands for more than just profit.
Discover the business case for social impact and the value of social giving programs. Read the report.
Ensure your CSR initiative has a measurable impact
An effective CSR strategy goes beyond good intentions; it connects to your values, engages your people and delivers results you can see and share.
The most impactful programs are holistic, and they address key areas like environmental sustainability, ethical sourcing, employee well-being and community involvement. They also invite employees to take part in the journey, creating a culture of purpose and participation.
When done well, CSR strengthens your brand, attracts and retains talent and builds lasting connections with your community — all while driving long-term growth and resilience.
But building and managing a program that brings all this together? That’s where the right tools make a difference. A platform like Benevity helps you streamline and centralize all your CSR programs and initiatives, from giving and volunteering to impact tracking, so you can focus on what matters most: making meaningful change.
Because when your people feel empowered to act and your company leads with purpose, real impact happens.
FAQs about corporate social responsibility
What is corporate social responsibility (CSR)?
Corporate social responsibility is a business approach where companies set specific goals related to ethics, sustainability and social impact. You can use CSR strategies to positively engage with your workforce, the community and society as a whole.
What are the four types of corporate social responsibility?
The four main types of CSR are environmental, ethical, philanthropic and economic responsibility. Many companies also expand their efforts into areas like DEI, governance, employee well-being and sustainable supply chain practices.
Why is CSR important?
Corporate social responsibility is important because it enables organizations to take positive action in the name of the business. It’s essential for attracting and retaining talent, improving brand reputation and meeting the expectations of today’s employees, consumers and investors.
Which CSR type do you start with for a new program?
If you’re starting a new CSR program, the best place to begin depends on your company’s current position and its core values. Many companies start with philanthropic efforts or employee engagement initiatives, like giving or volunteering programs, because they’re easy to scale and build momentum. It doesn’t have to be a big initiative; small, purposeful steps can go a long way.
What are the 7 pillars of CSR?
The 7 pillars of CSR are set out in ISO 26000, a set of international standards for social responsibility developed by the International Organization for Standardization (ISO).
The seven pillars are: accountability, transparency, ethical behavior, respect for stakeholder interests, respect for the rule of law, respect for the international norms of behavior and respect for human rights. Together, these principles offer a framework for companies to act responsibly and lead with purpose.
