Decarbonization: meaning, technology and goals
1 min
Level
In this article, we delve into the importance of decarbonizing our societies and outline actionable steps companies can take today to embark on their net-zero journey.
The voice of impact
ESG / CSR
Industries
MEASURE
ACT
COMFORM
CSR meaning: all you need to know
Level
“ Corporate Social Responsibility (CSR) has become a key part of how many companies operate – shaping how they interact with their communities, the environment, and society at large. But despite its growing relevance, some businesses – especially smaller ones – still question whether CSR is worth the effort. ”
In this article, we’ll break down what CSR really means, why it matters, and how companies of any size can benefit from a thoughtful CSR strategy. You’ll find real examples, practical tips, and guidance on how to integrate CSR initiatives into your business in a way that’s impactful.
Article key takeaways:
- CSR is about how companies give back - through voluntary environmental and social initiatives that benefit their stakeholders, communities, and the planet. Done right, it can also strengthen a company’s reputation and brand value.
- A strong CSR strategy can help attract investors, customers, and employees who value long-term sustainability as much as short-term success.
- Transparency is essential. The most effective CSR efforts are authentic, well-communicated, and aligned with the company’s overall goals – not just bolted on for appearances.
What is Corporate Social Responsibility (CSR)?
“ Corporate Social Responsibility (CSR) is all about how a business chooses to operate beyond just making a profit. It’s a way of embedding social, environmental, and ethical considerations into everyday operations and long-term strategy. ”
At its core, CSR is about doing business responsibly, whether that means reducing emissions, supporting fair labor practices, partnering with local communities, or making supply chains more sustainable.
These efforts are often tracked and shared in a company’s annual CSR report, which outlines the progress made and reinforces a commitment to transparency and accountability.
Other terms often used alongside CSR
People often use different terms when talking about the same ideas behind CSR. Here’s a quick look at what each one means:
| Term | What it means |
|---|---|
| Corporate Responsibility (CR) | A broader term that covers all of a company’s responsibilities – social, environmental, and economic. |
| Creating Shared Value (CSV) | The idea that businesses can boost profits while also solving social or environmental problems. |
| Corporate Accountability | Focuses on being transparent and ethical, and taking responsibility for how decisions affect others. |
| Corporate Citizenship | Treating the company like a member of the community, with the duty to contribute positively. |
| Corporate Sustainability | Prioritising long-term strategies that benefit both the business and the planet. |
Close
How does CSR differ from ESG?
While Corporate Social Responsibility and the related terms we just covered tend to focus on a company’s values and voluntary efforts, ESG takes a more structured and measurable approach, often used by investors to assess long-term sustainability and risk.
Close
ESG vs CSR
CSR is about how a company chooses to take responsibility for its impact on society and the environment. It often involves voluntary actions, like donating to charities, supporting local communities, or launching sustainability programs, that reflect the company’s values and commitment to doing good beyond just making a profit.
ESG (Environmental, Social, and Governance), on the other hand, is more data-driven. It’s a set of criteria investors, and other stakeholders, use to evaluate how well a company is managing risks and long-term sustainability. Rather than focusing on intentions, ESG looks at measurable performance – from carbon emissions and labor practices to board diversity and executive pay.
In short:
- CSR is values-led and often shaped by internal company culture.
- ESG is metrics-led and often shaped by external stakeholder expectations – especially from investors.
Both matter, but they serve different purposes and audiences.
CSR and sustainable development: how they work together
So, if Corporate Social Responsibility is about how companies take responsibility for their social and environmental impact, what does that look like on a global scale?
This is where sustainable development comes in. CSR initiatives and sustainable development go hand in hand. In fact, one of the most recognized global standards for Corporate Social Responsibility - ISO 26000 - defines it as a company’s responsibility to behave ethically and transparently in ways that support sustainable development.
A key tool for putting this into action is the UN Sustainable Development Goals (SDGs) - a set of 17 goals designed to tackle global challenges like poverty, inequality, climate change, and access to education and clean water. These goals provide a clear, shared framework businesses can use to shape their CSR strategies and maximize their positive impact.
By aligning with the SDGs, companies can ensure their CSR efforts are not only meaningful but also part of a broader global movement toward a more sustainable future.
How CSR has evolved over time
“ Corporate Sustainability Reporting might feel like a modern concept, but its roots go way back. The idea began with corporate philanthropy and religious charitable giving in the late 1800s, long before the term corporate social responsibility was officially coined in 1953 by economist Howard Bowen. ”
From that point on, CSR began to take shape as more than just charitable donations. By the early 2000s, companies started formalizing their efforts through reporting standards, most notably with the launch of the Global Reporting Initiative (GRI) in 2000. GRI quickly became one of the most widely used frameworks for CSR reporting.
And adoption skyrocketed: between 2000 and 2010, the number of the world’s 250 largest companies publishing CSR reports jumped from just 1% to over 90%.
A growing mix of frameworks
Today, businesses can choose from a variety of standards to guide their CSR efforts. Alongside GRI, you’ll find frameworks like:
- UN Global Compact (UNGC)
- Sustainable Accounting Standards Board (SASB)
- International Sustainability Standards Board (ISSB)
- ISO 26000
We’ll dive deeper into some of these later on.
Not just for big corporations
While CSR reporting started with large multinationals, smaller businesses are increasingly getting involved too. Many are choosing to demonstrate their commitment through certifications like B Corp, which measure social and environmental impact alongside profit.
From voluntary action to regulation
Corporate Sustainability Reporting hasn’t been without its critics. Some argue that relying on voluntary efforts gives companies too much freedom, potentially delaying stronger environmental or social regulations.
But in many ways, CSR reporting has laid the groundwork for today’s policies. Governments are now stepping in to formalize reporting practices through regulations like the EU’s Sustainable Finance Disclosure Regulation (SFDR), which includes requirements around climate and human rights disclosures.
Types of CSR practices
CSR initiatives can take many different forms, and most businesses combine several approaches depending on their goals, values, and resources. Here are four key types of CSR in action:
Environmental Responsibility
This is about reducing your company’s impact on the planet - and ideally, making a positive difference.
That could mean cutting emissions, recycling more, switching to sustainable materials, or creating greener products. Many companies also focus on improving energy efficiency, reducing waste, or managing their supply chains more responsibly to minimize environmental harm.
Ethical Responsibility
Ethical responsibility is about doing the right thing, for employees, suppliers, customers, and society.
It includes things like fair labor practices, equal opportunity hiring, inclusive workplace policies, and transparency with stakeholders. Companies that prioritize ethical responsibility aim to build trust through honesty, integrity, and fairness in how they operate.
Philanthropic Responsibility
Philanthropic responsibility focuses on giving back.
It might involve donating to charities, supporting local projects, encouraging employees to volunteer, or partnering with organizations that share the company’s values. Some businesses go further by aligning their supply chain with partners that also prioritize social good, helping to extend their impact beyond their own operations.
Financial Responsibility
CSR isn’t just about good intentions – it also takes investment.
Financial responsibility means putting money behind initiatives that support sustainability, diversity, equity, inclusion, and social well-being. That could mean funding community programs, investing in R&D for eco-friendly products, or building long-term strategies that make responsible business part of the bottom line.
What are the business benefits of Corporate Social Responsibility?
“ CSR initiatives can bring real, measurable advantages to your business. From attracting talent and investment to boosting efficiency and innovation. ”
Here’s how responsible business practices pay off:
Enhanced business value
Corporate Social Responsibility helps boost a company’s reputation and perceived value beyond just financial performance. By actively promoting sustainability and social initiatives, businesses can position themselves as leaders in their industry, attracting customers, partners, and stakeholders who care about ethical practices.
Attracts investors
Investors are increasingly looking at CSR performance when assessing long-term risk and value. According to CECP’s 2021 Giving in Numbers report, around 80% of businesses now share CSR data with investors, highlighting how closely Corporate Social Responsibility is tied to financial decision-making and sustainable growth.
Improved brand image
Today’s customers want to support brands that showcase ethical behavior. A 2020 Kantar Purpose study found that brands with a positive social or environmental impact grew by 175% over 12 years, compared to just 70% for others. CSR helps businesses build stronger emotional connections with their audience by showing they care about more than just profit – whether that’s through sustainability efforts, community support, or ethical supply chains. When done well, this not only builds trust but sets brands apart in a crowded market.
Stronger employer brand
Corporate Social responsibility plays a major role in attracting and keeping top talent. According to a 2021 Deloitte survey, 44% of millennials and 49% of Gen Z consider a company’s ethics when choosing where to work. Businesses with strong Corporate Social Responsibility programs see 40% higher employee retention than their competitors – a big deal, especially considering that losing a single employee can cost more than 40% of their annual salary, according to the Washington Center for Equitable Growth.
Improved operational efficiency
Sustainable practices like energy conservation, waste reduction, and smart resource use don’t just help the planet, they reduce costs too. Companies that invest in cleaner technologies or streamline supply chains often find they’re more efficient, more profitable, and less exposed to environmental risks.
Drives innovation
Corporate Social Responsibility encourages companies to think creatively about how to solve real-world problems. That often leads to the development of new products, services, or business models, and opens up opportunities in emerging markets. By addressing social and environmental challenges, businesses can discover entirely new ways to grow and succeed.
Key CSR Frameworks
There’s no one-size-fits-all approach to Corporate Social Responsibility, but there are a number of key global frameworks that can help businesses build credible, consistent, and transparent strategies. These frameworks guide companies on how to measure, report, and improve their social and environmental impact in line with international standards.
the right one depends on your company’s size, sector, goals, and stakeholder expectations.
| Framework | What it does | Focus areas | Best for |
|---|---|---|---|
| Global Reporting Initiative (GRI) | Provides detailed sustainability reporting standards used worldwide, helping companies measure and communicate their social and environmental impact. | Economic, environmental, and social impacts including labour practices, human rights, and community involvement. | Large or mid-sized companies looking for comprehensive, globally recognised sustainability reporting. |
| UN Global Compact (UNGC) | Encourages businesses to align with 10 universal principles and report progress. Participation is voluntary but influential. | Human rights, labour, environment, anti-corruption. | Companies of all sizes seeking to publicly commit to responsible business principles and align with the UN’s SDGs. |
| Sustainable Accounting Standards Board (SASB) | Provides industry-specific sustainability disclosure standards to help companies share financially material information with investors. | ESG issues tailored to specific sectors. | Publicly listed companies, especially those with investor-facing reports. |
| Integrated Reporting (IR) Framework | Combines financial and non-financial data in one report to show how a business creates long-term value. | Strategy, governance, sustainability, performance. | Companies with mature reporting practices looking to integrate sustainability into financial strategy. |
| ISO 26000 | Offers guidance on how to operate in a socially responsible way, without certification. | Governance, human rights, labour, environment, fair practices, consumer issues, community engagement. | Companies seeking broad internal guidance on responsible behaviour – especially useful for first-time CSR efforts. |
| CDP (Carbon Disclosure Project) | Helps companies measure and disclose environmental impact to investors and stakeholders. | Climate change, water security, deforestation, supply chain emissions. | Mid-sized to large companies, particularly those in carbon-intensive industries or with investor pressure. |
| B Corp Certification | Certifies businesses that meet high standards in social and environmental performance, with legal accountability. | Governance, workers, community, environment, customers. | Purpose-driven companies (including SMEs) that want formal recognition and branding for their impact. |
| SA8000 (Social Accountability International) | Provides a certification for decent working conditions based on ILO and human rights conventions. | Worker rights, health and safety, fair pay, discrimination, working hours. | Companies with global supply chains, especially in manufacturing or industries where labour rights are a key concern. |
Making CSR part of your core business operations
A well-designed Corporate Social Responsibility policy should reflect your company’s values and long-term vision. It’s not a one-off project, but an ongoing commitment to improving your social, environmental, and economic impact. Whether you’re starting from scratch or refining existing efforts, here’s a practical roadmap to help guide your approach:
- Assess where you are now: Start by taking a good look at your company’s current impact – socially, environmentally, and economically. An internal audit can help identify what’s working, where the gaps are, and where you can make the biggest difference.
- Set clear, meaningful goals: Define Corporate Social Responsibility objectives that align with your company’s mission and values. Keep them measurable and achievable – whether you're aiming to reduce emissions, improve supply chain ethics, or support local communities.
- Embrace environmental responsibility: Make sustainability part of your core operations. This could include reducing energy use, minimizing waste, choosing eco-friendly materials, or rethinking your supply chain to lower emissions. Small changes – like switching to renewable energy or improving packaging – can add up to a big impact over time.
- Get your stakeholders involved: Don’t build your CSR policy in a vacuum. Engage employees, customers, suppliers, and community members to understand their expectations and concerns. Their input can shape more relevant, impactful initiatives, and build early support.
- Build your CSR strategy: Turn your goals into action. Develop a clear plan that outlines your initiatives, assigns responsibilities, sets timelines, and includes metrics to track progress. Make sure it ties into your broader business strategy, not something bolted on as an afterthought.
- Put your plans into motion: Roll out your CSR initiatives across the business. Make sure everyone understands their role, and provide the training or tools they need to succeed. Cross-team collaboration is key here.
- Track and report progress: Monitor how things are going using the KPIs you’ve set. Be transparent with your stakeholders, publishing an annual CSR report is a great way to showcase your achievements and acknowledge areas for improvement.
- Share your story: Celebrate your wins and share your journey. Use your website, social media, press releases, or internal newsletters to highlight your impact and keep the momentum going.
- Keep improving: CSR is an ongoing process. Collect feedback, keep an eye on new developments and best practices, and refine your approach as you go. Flexibility and a willingness to adapt are key to long-term success.
- Create a responsible company culture: Encourage everyone in your organization to get involved. Recognise employees who go above and beyond, and offer opportunities for staff to participate in CSR activities, from volunteering days to green office initiatives.
- Collaborate with others: Look for partnerships with NGOs, industry bodies, or other businesses that share your values. These collaborations can bring fresh ideas, added credibility, and extra resources to strengthen your efforts.
Mistakes to avoid when building your company CSR policy
“ Even with the best intentions, it’s easy for companies to stumble when designing or implementing a CSR policy. From setting unrealistic goals to overlooking key voices, these missteps can weaken your corporate social responsibility efforts, hurt your credibility, and limit your impact. ”
To help you stay on the right track, here are some of the most common CSR mistakes – and what to do instead:
| Mistake | Why it matters | What to do instead |
|---|---|---|
| Lack of genuine commitment | Treating CSR as a branding exercise rather than a core business value can damage trust. Stakeholders can quickly spot performative efforts. | Make CSR part of your company’s identity – not just your messaging. Integrate it into your strategy, culture, and daily operations. |
| Ignoring stakeholder input | CSR policies that don’t reflect the needs or concerns of employees, customers, or communities often fall flat. | Involve stakeholders early and often. Their insights help create more relevant and effective initiatives. |
| Setting unrealistic goals | Overly ambitious targets can set your company up for failure and harm credibility. | Focus on achievable, measurable goals. You can scale efforts over time as your CSR programme matures. |
| Poor communication | If stakeholders aren’t aware of your CSR work, it’s difficult to build support or showcase progress. | Communicate regularly and transparently through reports, newsletters, and social media. Share both wins and lessons learned. |
| Not measuring impact | Without tracking your progress, you won’t know what’s working – or where to improve. | Use clear metrics to evaluate your initiatives. Make data part of the learning and growth process. |
| Focusing only on short-term wins | Short-term thinking can undermine long-term impact and lead to inconsistent efforts. | Prioritise sustainable change. Consider how your actions today will shape outcomes tomorrow. |
| Inconsistent implementation | A CSR policy that isn’t applied evenly across departments or locations can confuse employees and weaken results. | Ensure all teams are aligned and engaged. CSR should be reflected across your operations. |
| Overlooking employee engagement | Without employee buy-in, CSR efforts often struggle to take root. | Empower employees to contribute. Encourage participation, provide opportunities for involvement, and celebrate internal champions. |
CSR in Practice
“ Corporate Social Responsibility isn’t just a theoretical concept – it’s something many companies are already embedding into their operations in meaningful ways. From cutting emissions to rethinking product design and supporting global communities, these businesses show how CSR can drive real impact while supporting long-term growth. ”
Here are a few standout examples:
- IKEA: Sustainability is at the core of IKEA’s strategy. The company has invested heavily in renewable energy and now uses 83% recycled polyester in its textiles. It’s also taken steps to reduce the carbon footprint of its food offerings – introducing a plant-based meatball with just 4% of the emissions of its traditional version.
- LEGO: LEGO’s CSR efforts focus on reducing waste and tackling climate change. The company is switching to more sustainable materials, cutting down on packaging, and investing in renewable energy to power its operations.
- Johnson & Johnson: A long-time supporter of global health, Johnson & Johnson extends its impact through CSR by backing clean water and sanitation projects, as well as supporting alternative energy initiatives in underserved communities.
- Google: Google matched 100% of its global electricity use with renewable energy investments as early as 2020. It also promotes green building practices in its offices – part of a broader effort to reduce its environmental footprint across its global operations.
- Tesco: The UK supermarket giant, Tesco, has cut greenhouse gas emissions by 54% since 2015, donated 82% of its unsold food, and removed 1 billion pieces of plastic from its packaging – proof that even in fast-paced retail, long-term sustainability goals can be met with focused action.
Close
How Greenly can help companies with CSR practices
Waiting for regulatory changes or reputational damage to drive change means missing out on opportunities to lead in your industry.
Greenly helps you proactively engage in Corporate Social Responsibility, positioning your company as a leader in social responsibility and environmental stewardship.
Comprehensive Carbon Management
Greenly offers a range of services to help you effectively manage your carbon footprint:
- Measurement of GHG Emissions: Track Scope 1, 2, and 3 emissions using advanced technology for a comprehensive understanding of your greenhouse gas footprint.
- Custom Action Plans: Develop tailored strategies with our climate experts, focusing on key areas for improvement and implementing effective changes.
Decarbonizing Your Supply Chain
Greenly helps you engage suppliers and transition to low-carbon options, achieving greater transparency and effectively managing Scope 3 emissions. Our sustainable sourcing initiatives build greener partnerships and reduce emissions throughout your supply chain.
Intuitive and Seamless Platform
Our user-friendly platform simplifies the process of calculating and monitoring your carbon footprint. With Greenly, your business can effortlessly manage its environmental impact, meet ESG goals, and enhance sustainability.
The Benefits of Early Adoption
Acting now on CSR prepares you for future regulations and positions your company as a proactive leader in sustainability. Greenly can help you seize these opportunities, transforming your business strategy from reactive to proactive and setting you apart from the competition.
Why Choose Greenly?
Greenly offers comprehensive support for your CSR journey, from carbon measurement and custom action plans to supply chain decarbonization and seamless platform integration. With our help, your business can significantly reduce its environmental impact and implement socially responsible business practices.
Contact Greenly today to start leading the way in CSR and build a greener future for your company.
Sources
Carroll’s CSR Pyramid: Principles and Examples, Greenly, https://greenly.earth/en-gb/blog/company-guide/carolls-csr-pyramid-principles-and-examples
Why is Stakeholder Engagement Difficult? Greenly, https://greenly.earth/en-gb/blog/company-guide/why-is-stakeholder-engagement-difficult
Carbon footprint: everything you need to know, Greenly, https://greenly.earth/en-gb/blog/company-guide/carbon-footprint-calculate-reduce-and-offset-your-impact
Does transparency benefit or harm your company? Greenly, https://greenly.earth/en-gb/blog/company-guide/does-transparency-benefit-or-harm-your-company
ESG criteria: what you need to know, Greenly, https://greenly.earth/en-gb/blog/company-guide/esg-criteria-what-you-need-to-know
ISO 26000, ISO, https://www.iso.org/iso-26000-social-responsibility.html
UPDATED: CORPORATE SOCIAL RESPONSIBILITY: A BRIEF HISTORY, ACCP, https://accp.org/resources/csr-resources/accp-insights-blog/corporate-social-responsibility-brief-history/
Survey of Sustainability Reporting 2022, KPMG, https://assets.kpmg.com/content/dam/kpmg/se/pdf/komm/2022/Global-Survey-of-Sustainability-Reporting-2022.pdf
How to get a B Corp Certification? Greenly, https://greenly.earth/en-gb/blog/company-guide/how-to-get-a-b-corp-certification
How Sustainable Sourcing Contributes to Reducing Emissions, Greenly, https://greenly.earth/en-gb/blog/company-guide/how-sustainable-sourcing-contributes-to-reducing-emissions
PURPOSE-LED GROWTH, Kantar, https://kantar.no/globalassets/ekspertiseomrader/merkevarebygging/purpose-2020/p2020-frokostseminar-250418.pdf
Global Marketing Trends 2023, Deloitte, https://www2.deloitte.com/us/en/insights/topics/marketing-and-sales-operations/global-marketing-trends.html
Improving U.S. labor standards and the quality of jobs to reduce the costs of employee turnover to U.S. companies, Washington Center for Equitable Growth, https://equitablegrowth.org/wp-content/uploads/2020/12/122120-turnover-costs-ib.pdf
Social impact, IKEA, https://www.ikea.com/gb/en/this-is-ikea/community-engagement/
Playing our part in a sustainable future, LEGO, https://www.lego.com/en-us/sustainability?locale=en-us
Google Sustainability, https://sustainability.google
Corporate Social Responsibility., TESCO, https://tesco-bst.com/corporate-social-responsibility/
More articles
View all
The Carbon Border Adjustment Mechanism (CBAM)
1 min
Level
In this article we’ll explore what the CBAM is, why it’s been created, and what importers need to know ahead of its introduction.
What is carbon management?
1 min
Level
Carbon management strategically reduces the CO2 emissions of a business’s carbon footprint. Find out how businesses are adopting carbon management strategies.
What are the 3 Pillars of Corporate Sustainability?
1 min
Level
What are the 3 pillars of corporate sustainability and why are they important?