CSR (Corporate Social Responsibility)

Definition

"CSR means addressing the legal, ethical, commercial and other expectations society has for businesses, and making decisions that fairly balance the claims of all key stakeholders"(1). Some companies have long histories of committing to social issues as they pursue their profit goals, but the current focus of CSR discussion on "social expectations" and "all stakeholders" is a relatively recent development.

The definition is from Business for Social Responsibility (BSR) *1. The Green Paper CSR European Commission, 2001 (government policy proposal) defines CSR as "a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis" *2. The Japanese Financial Services Agency defines CSR as "the responsibility that companies recognize in relations with various stakeholders in an effort to achieve sustainable development and the economical, environmental and social measures to be taken based on that responsibility. Specifically, CSR concerns a wide range of company's activities,such as regulation compliance, tax payment, consumer protection, environmental conservation,

respect for human rights and regional contribution" *3. Further, the interim report of the "round-table conference regarding CSR" prepared by the Ministry of Economy, Trade and Industry (METI) summarizes CSR as "a concept to regulate a company's contribution to the development of society and the company's own development by expanding business results while proactively communicating with the company's various stakeholders based on its business ethics. CSR is a philosophy as well as a business practice that entails establishing appropriate organizations and communicating with stakeholders to identify and fulfill the company's obligation" *4.