Learn It 6.3.1: Corporate Social Responsibility

  • Define corporate social responsibility (CSR)
  • Understand the impact of CSR on stakeholders
  • Recognize examples of CSR
  • Understand controversies surrounding CSR

What is CSR?

corporate social responsibility

Corporate social responsibility (CSR) can be defined as the ethical role of the corporation in society. The aim of CSR is to increase long-term profits and shareholder trust through positive public relations and high ethical standards. The goal is to reduce business and legal risk by taking responsibility for corporate actions.

It isn’t enough for companies to generate a profit and merely meet the letter of the law in their business operations. Beneficial action required by law, such as cleaning up factories that are polluting air and water, is not voluntary. However, CSR is voluntary. Also, the obligations of corporate social responsibility are broad. They extend beyond investors in the company to include workers, suppliers, consumers, communities, and society at large. Today, many U.S. citizens expect business to generate a profit while conducting themselves in an ethical and socially responsible manner.

CSR strategies encourage the company to make a positive impact on the environment and stakeholders—that is, all of the parties with a stake in the performance and output of the corporation. Stakeholders include the company’s employees, unions, investors, suppliers, consumers, local and national governments, and co6mmunities that may be affected by corporate activities such as construction, manufacturing, and pollution. For some companies, CSR means manufacturing their products in a way that doesn’t harm the environment and protects the consumer from potentially hazardous materials. 

All-One with Dr. Bronner’s

Dr. Bronner’s is a strong example of how a company can align profit with ethical purpose. Founded in 1948, this soap and personal care brand goes beyond legal requirements by embedding social and environmental values into its core business. Dr. Bronner’s defines its mission around the motto, “All-One” which emphasizes unity, fairness, and sustainability across its operations.[1]

A major part of Dr. Bronner’s CSR efforts involves sourcing ingredients like coconut and palm oil from farms that are certified fair trade and organic.[2] These certifications mean the farms follow strict standards to protect the environment and treat workers fairly. For example, fair trade ensures that farmers are paid decent wages and work under safe conditions, while organic farming avoids harmful chemicals that can pollute soil and water. By choosing these suppliers, Dr. Bronner’s helps improve lives in farming communities and reduce environmental harm, both important goals of CSR.

Dr. Bronner’s extends its CSR through philanthropy and employee care. In 2022, it donated over $8.6 million to causes such as climate action and drug policy reform. Internally, it provides generous benefits, profit-sharing, and a minimum wage nearly double the federal level.[3] It has also committed to cap the salary of top executives at no more than five times the salary of the lowest paid worker.[4] These practices show how CSR can guide ethical decision-making, create long-term trust, and benefit a wide range of stakeholders.

Friedman Doctrine

A counterpoint to CSR comes from the Friedman Doctrine, which argues that a corporation’s sole responsibility is to maximize shareholder value within legal and ethical boundaries. Economist Milton Friedman contended that CSR diverts resources from a company’s core mission, reducing efficiency and interfering with market forces. He viewed social and environmental initiatives as responsibilities of governments, not businesses. Instead, he believed companies best serve society by driving economic growth, creating jobs, and delivering value to consumers, ultimately leading to broader prosperity. However, critics of the Friedman Doctrine point out that this approach can lead to income inequality and and harm to the broader economy, as seen in cases like the 2008 global financial crisis.

  1. Dr. Bronner's. 2024. “75 Years of ALL-ONE!” ALL-ONE REPORT. 2024. https://www.allone.report/2024. ↵
  2. ———. n.d. “Constructive Capital, Activism, and Giving.” Dr. Bronner’s. Accessed May 20, 2025. https://www.drbronner.com/blogs/our-community/constructive-capital-activism-and-giving. ↵
  3. WholeFoods . 2023. “Dr. Bronner’s Releases 2023 All-One! Report: ‘Take Care of Spaceship Earth!’” Wholefoodsmagazine.com. WholeFoods Magazine. August 16, 2023. https://www.wholefoodsmagazine.com/articles/16350-dr-bronners-releases-2023-all-one-report-take-care-of-spaceship-earth. ↵
  4. ———. n.d. “Progressive Business Practices.” Dr. Bronner’s. Accessed May 20, 2025. https://www.drbronner.com/blogs/our-employees/progressive-business-practices. ↵
definition