Types of Corporate Social Responsibility: Meaning, Examples & Why It Matters
Whether you’re a startup, SME, or FTSE giant, understanding CSR (or, in its full form, corporate social responsibility) is no longer optional. Customers expect it. Employees demand it. Investors value it. But what types of CSR are out there – and how can businesses cover all of them? We’ll be breaking down each type of CSR, with real corporate social responsibility examples from socially responsible companies.
In this guide, we’ll cover:
What Does CSR Stand For and Why Is It Important?
Types of CSR
Environmental Corporate Social Responsibility
Ethical / Human Rights Social Responsibility
Philanthropic Corporate Responsibility
Economic Corporate Responsibility
Other Types of Corporate Social Responsibility
Diversity and Inclusion
Governance
Well-being
Employee Engagement
Supply Chain Responsibility
What Are the Benefits of CSR?
Conclusion: Build A CSR Strategy that Delivers
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What Does CSR Stand For and Why Is It Important?
First, let’s cover the basics. CSR stands for corporate social responsibility. But what does that mean exactly?
CSR meaning: CSR refers to a company's commitment to operating ethically and sustainably, considering the environmental, social, and financial impacts of its decisions. It's about going beyond legal obligations to proactively benefit society and the environment, while still striving for profitability.
It’s a business approach that helps organisations be accountable to society – socially, environmentally, and ethically. It also enables businesses to report on their impact to stakeholders. The basic principles of corporate social responsibility were established by Carroll’s pyramid of corporate social responsibility, which was created back in 1991, but things have evolved a lot since then, with lots of different kinds of CSR developing.
Still wondering what does CSR mean in practice or what does CSR stand for in business? Well, when it comes to the specifics, there are lots of different types of CSR that impact businesses in different ways. Let’s get into the particulars.
Types of CSR
The four main types of CSR are environmental, ethical, economic, and philanthropic.
There are four widely recognised types of CSR. Each of these CSR types comes with its own distinct approaches, activities, and benefits.
Environmental Corporate Social Responsibility
As the name suggests, this type of CSR focuses on a business’s environmental impact – and when it comes to corporate social responsibility, environment and climate issues are key.
Some key considerations of environmental social responsibility include:
Reducing carbon footprints
Managing waste
Conserving water
Building sustainable practices into day-to-day operations
Greener supply chains
Carbon offsetting
Switching to renewable energy
Adopting circular economy models that minimise waste
Businesses that prioritise environmental corporate social responsibility demonstrate a clear commitment to fighting climate change and preserving ecosystems.
CSR example: Patagonia is an industry leader in this area, and they’re as well known for their CSR initiatives as they are for their products. The brand uses recycled materials, supports grassroots environmental movements, and all remaining profit after reinvestment in the business is directed to the Holdfast Collective, plus a donation of 1% of sales to sustainability efforts.
It also encourages customers to repair rather than replace gear, reducing unnecessary consumption. The outdoor clothing brand has truly harnessed CSR – meaning, in business terms, their CSR offering adds enormous value to their brand ethos and appeal.
Ethical / Human Rights Social Responsibility
It should come as no surprise that when it comes to corporate social responsibility, ethics are key. Ethical responsibility in business is all about CSR focused on doing business fairly. Ethical CSR means prioritising the rights and wellbeing of workers, suppliers, and customers.
Some key considerations of ethical social responsibility include:
Fair wages
Safe working conditions
Data privacy protections
Supply chain transparency
Active steps to prevent exploitation or discrimination
CSR ethics are especially critical for companies operating in multiple countries, where standards and regulations may vary. Upholding business ethics and social responsibility builds trust and resilience.
CSR example: Ben & Jerry’s is known for ethics and corporate social responsibility. The socially responsible business pays fair trade premiums, supports ethical dairy farming, and openly campaigns on issues like refugee rights and criminal justice reform. Their approach goes beyond compliance – it's about values in action.
Philanthropic Corporate Responsibility
This is about giving back to the community – financially or through time and expertise. Some key considerations of philanthropic CSR include:
Donating profits
Offering free services
Sponsoring local causes
Supporting global initiatives.
The key is aligning your giving with your company values and stakeholder needs.
CSR example: Microsoft’s CSR practices are famously robust. Its philanthropic program matches employee donations, provides paid volunteering days, and has donated billions to nonprofits over the years. This embodies philanthropic responsibilities at scale, showing how large corporations can enable change far beyond their bottom line.
Economic Corporate Responsibility
Economic CSR isn’t about avoiding losses or boosting profit margins – economic responsibility is about ensuring your financial decisions benefit broader society.
Some key considerations of philanthropic CSR include:
Inclusive hiring
Fair pricing
Supporting local economies
Ethical investing
Creating long-term value for all stakeholders, not just shareholders
CSR example: Unilever are masters of economic social responsibility, meaning that their sustainability plan is integrated into every aspect of the business. From sourcing raw materials responsibly to providing a decent livelihood for people in their value chain, they prove that profitability and purpose can go hand-in-hand.
Other Types of Corporate Social Responsibility
Business social responsibility is evolving. Beyond the four traditional types, many organisations embrace broader, integrated social responsibilities.
Equity, Diversity and Inclusion
ED&I is more than hiring targets. It’s about building an inclusive culture that values every voice. A commitment to ED&I boosts innovation, reflects society, and helps dismantle barriers to success. It also signals a truly socially responsible business that understands the value of diverse perspectives.
CSR example: Salesforce has implemented transparent pay equity reviews and unconscious bias training. Their employee resource groups empower underrepresented communities and drive inclusion from the inside out.
Get actionable advice from ED&I leaders – read the free handbook today.
Governance
Good governance goes hand-in-hand with being a socially responsible company. It involves transparency, anti-bribery policies, diversity at the board level, and clear accountability frameworks. Strong governance boosts trust and long-term success.
CSR example: Natura &Co, the Brazilian cosmetics company, champions governance by integrating sustainability metrics into executive bonuses and ensuring environmental and social oversight at board level.
Wellbeing
Modern employers are increasingly recognising their responsibility for employee well-being. This spans physical health, mental health, work-life balance, and psychological safety. In fact, employee wellbeing is a core part of the social responsibility of business.
CSR example: Google offers counselling services, generous parental leave, onsite healthcare, and mindfulness programs – all of which create a resilient, engaged workforce.
Employee Engagement
CSR boosts employee engagement by giving teams purpose and opportunities to make an impact. Volunteer programs, green challenges, and social action days foster connection, drive morale, and boost retention.
CSR example: After choosing OnHand to be their all-in-one CSR partner for purpose, planet, and people, Domestic & General’s employee engagement rate soared to an impressive 92%, well above the industry average (70%). By partnering with OnHand, D&G facilitated volunteering and social initiatives, fostering a sense of purpose. This not only increased morale but also slashed turnover rates and attracted top-tier talent, shaping a highly productive workforce.
For more detail, read the full case study on Domestic & General’s CSR success.
Supply Chain Responsibility
Supply chains are a key risk – and opportunity – for CSR. From climate emissions to human rights violations, businesses are increasingly expected to take ownership of their full value chain. That means sourcing responsibly, managing supplier ethics, and reducing environmental impact across logistics.
CSR example: IKEA is investing in traceable sourcing, emissions cuts across shipping and production, and working only with suppliers that meet strict environmental and social standards.
What Are the Benefits of CSR?
There are 12 distinct benefits of CSR.
CSR isn’t just good ethics – it’s good economics. When done well, it drives growth, protects your brand, and builds long-term value. In today’s socially conscious world, a robust CSR strategy can seriously boost your business on multiple fronts. From improving customer loyalty to attracting investors and reducing risk, the returns on responsibility are real – and measurable.
Whether you're a global enterprise or a fast-growing startup, embedding CSR into your business strategy gives you a competitive edge. It’s also increasingly expected by regulators, job seekers, and conscious consumers alike.
There are 12 key benefits of CSR you shouldn’t overlook:
Stronger Brand Reputation
Attracting and Retaining Top Talent
Better Investor Appeal
Customer Trust and Loyalty
Boosted Employee Engagement
Stronger Team Connection and Morale
Competitive Advantage
Purpose-Led Innovation
Community Engagement
Resilience & Risk Management
Regulatory Readiness (CSRD, ESG, SDGs)
Tangible Impact You Can Measure
Ready to Build a CSR Strategy That Delivers?
There’s no one-size-fits-all model. Your CSR strategy will depend on your goals, industry, and impact ambitions. But starting is better than stalling—and the rewards of getting it right are huge.
CSR is no longer a nice-to-have. It’s a must for companies that want to stay competitive, build trust, and attract purpose-driven employees and customers. Whether you’re just starting out or refining your existing approach, the path forward begins with action.
If you’re wondering how to begin:
Look at CSR initiatives that align with your values
Learn from real corporate social responsibility examples
See how other socially responsible companies are making change
The best CSR strategies evolve over time and are embedded into every part of your organisation. At OnHand, we make CSR in business easy – with trackable impact, real-world change, and employee engagement at the core.
Talk to an expert at OnHand today and start creating impact.
FAQs
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CSR refers to a company's commitment to operating ethically and sustainably, considering the environmental, social, and financial impacts of its decisions. It's about going beyond legal obligations to proactively benefit society and the environment, while still striving for profitability.
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CSR stands for Corporate Social Responsibility.
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Corporate responsibility is just an abbreviation of Corporate Social Responsibility, which is a company’s voluntary commitment to act ethically and sustainably, taking into account how its actions affect people, the planet, and the economy. It goes beyond basic legal requirements, aiming to create positive outcomes for society and the environment while remaining financially sustainable.
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Corporate social responsibility (CSR) is a company’s pledge to act ethically and sustainably, taking into account the environmental, social, and economic impact of its choices. It’s about doing more than just meeting legal requirements — it’s about actively creating positive change for people and the planet while maintaining a profitable business.
