Corporate social responsibility or CSR meaning

A newer, though less widely known, idea is ‘bluewashing’. Whereas greenwashing centres on environmental claims, bluewashing relates to social matters such as modern slavery, labour practices and corporate diversity. It describes instances in which a business leverages affiliation or participation in a corporate social responsibility (CSR) scheme to mask the reality that it is not applying those standards itself. In practice, numerous corporates treat ESG memberships as a tick-box tactic to win customers, without embedding the underlying principles internally. This piece will explore bluewashing further and highlight warning signs to consider. United Nations Global Compact (UNGC) A prominent illustration of bluewashing emerged around the launch of the UNGC. Often, such signalling diverts attention from the absence of genuine change behind the scenes within their own operations...

Key terms Expressions such as ‘responsible/sustainable business’, ‘corporate responsibility’ (CR), ‘corporate social responsibility’ (CSR), and ‘environmental, social, governance’ (ESG) appear widely in multiple settings among companies, advisers and legal practitioners across sectors. Yet, broadly, they all signal an enterprise acting responsibly within its everyday operations, as part of its day-to-day activities. An increasing number of businesses recognise that meeting national, state and local rules alone may no longer adequately shield them from legal, regulatory or reputational exposure, and that missing the escalating expectations in this sphere can carry significant financial consequences. In this note, we adopt ‘sustainable business’ as the overarching label for consistency. For further terminology, see Precedent: Sustainability glossary terms (The Chancery Lane Project). What is ‘sustainability’? The word ‘sustainability’ often sits alongside phrases such as ‘environmental sustainability’ or green business in common discussion. Although there is no single, settled definition, many bodies and sources rely on the Brundtland Commission Definition of sustainable development when attempting to explain the term. However, the Brundtland Commission Definition...

Trend towards environmental, social governance or sustainability reporting The phrases sustainable business, corporate responsibility (CR), corporate social responsibility (CSR) and environmental, social, governance (ESG) are used across business and legal settings. Broadly, they describe organisations embedding responsible conduct into everyday operations. CSR has traditionally focused on accountability, yet its outcomes were difficult to quantify. That is shifting under the ESG lens, where impacts are increasingly measurable—and therefore simpler to disclose—with CSR often viewed as a forerunner to ESG. Growing numbers of companies recognise that mere legal compliance may no longer suffice to guard against legal, regulatory or reputational exposure; aligning with voluntary standards and reporting frameworks can help mitigate these risks. The drive for transparency and accountability through corporate governance and sustainability disclosures has reignited attention on the ‘triple bottom line’—environmental, social and economic effects. Although sustainability, CR and CSR lack a single, settled definition, voluntary reports are frequently structured around three core pillars—ESG. In essence, ESG reporting assesses a company’s sustainability and ethical performance...

This Practice Note explores regulatory considerations linked to corporate social responsibility (CSR). For guidance on CSR strategies and drafting a CSR policy, see Practice Note: How to formulate your organisation’s approach to corporate social responsibility—CSR. Although there is no single CSR statute setting out defined duties for businesses, there is extensive legislation on equality and diversity (E&D)—see section: Equality Act 2010. These themes are central to CSR. You should also consider any regulatory, practice standard, or accreditation expectations relating to CSR... SRA requirements There is no SRA obligation for law firms to maintain a CSR strategy or policy. However, a clear CSR policy may assist firms in shaping business processes to achieve an overall positive impact for clients. CSR strongly overlaps with E&D, and firms should remain mindful of their regulatory duties concerning E&D... Equality Act 2010 The Equality Act 2010 (EqA 2010) makes it unlawful to discriminate against individuals, including those with a disability or on the basis of age. This may include, for instance:...