What does corporate social responsibility (CSR) entail?

Corporate social responsibility (CSR) encompasses a company's commitment to conduct its business operations ethically, which includes making decisions that consider not only the financial outcomes but also the societal and environmental impacts of those decisions. It requires organizations to contribute positively to economic development and to improve quality of life for communities and stakeholders involved.

This understanding of CSR emphasizes the importance of ethical practices and sustainable development in a business context, balancing profitability with the welfare of society and the environment. In doing so, companies that embrace CSR often enhance their reputations, foster customer loyalty, and ultimately contribute to long-term business success.

The other options presented do not correctly encapsulate the essence of CSR. Some focus solely on internal operations and profit maximization without any regard for ethical considerations or the broader impact on society and the environment. Others suggest a narrow focus on attracting shareholders rather than addressing the interests and needs of a wider array of stakeholders.