5.1: Corporate Social Responsibility (CSR) and the UN’s Sustainable Development Goals (SDGs)

Corporate Social Responsibility (CSR)

Corporate social responsibility is a business model by which companies make a concerted effort to operate in ways that enhance rather than degrade society and the environment. CSR can help improve society and promote a positive brand image for companies. It refers to the approach that an organization takes in balancing its responsibilities toward different stakeholders when making legal, economic, ethical, and social decisions. CSR includes four categories: environmental impacts, ethical responsibility, philanthropic endeavours, and financial responsibilities.^[1]

What motivates companies to be “socially responsible”? We hope it’s because they want to do the right thing, and for many companies, “doing the right thing” is a key motivator. The fact is, it’s often hard to figure out what the “right thing” is: what’s “right” for one group of stakeholders isn’t necessarily “right” for another. One thing, however, is certain: companies today are held to higher standards than ever before. Consumers and other groups consider not only the quality and price of a company’s products but also its character. If too many groups see a company as a poor corporate citizen, it will have a harder time attracting qualified employees, finding investors, and selling its products. Good corporate citizens, by contrast, are more successful in all these areas.

Sustainable Development Goals

The United Nations’ Sustainable Development Goals (SDGs) are a set of 17 goals that aim to achieve peace and prosperity for the people and the planet. In September 2015, all of the United Nations Member States adopted a “shared blueprint for peace and prosperity for people and the planet, now and into the future”. The 17 Sustainable Development Goals (SDGs) shown in Figure 5.1 are “an urgent call for action by all countries” — developed and developing — in a global partnership. They recognize that ending poverty must go hand-in-hand with strategies that build economic growth, and address a range of social needs, including education, health, equality and job opportunities, while tackling climate change and working to preserve our oceans and forests.^[2]

The SDGs are as follows:

1. No poverty
2. Zero hunger
3. Good health and well-being
4. Quality education
5. Gender equality
6. Clean water and sanitation
7. Affordable and clean energy
8. Decent work and economic growth
9. Industry, innovation, and infrastructure
10. Reduced inequalities
11. Sustainable cities and communities
12. Responsible consumption and production
13. Climate action
14. Life below water
15. Life on land
16. Peace, justice, and strong institutions
17. Partnerships for the goals

The 17 SDGs contain targets for building a better world for the people and the planet by 2030. Businesses, non-profits, NGOs, and educational institutions have developed their own frameworks to address the SDGs and meet individual targets. Sustainable development can be part of a company’s corporate social responsibility program.

On September 14, 2022, Patagonia’s founder, Yvon Chouinard, announced that he was transferring ownership of the company, valued at $3 billion, to a trust and nonprofit dedicated to fighting climate change. Rather than selling the company or going public, Chouinard ensured that all profits (about $100 million annually) would be used to combat environmental issues. This is an example of how a business such as Patagonia enabled progress on these SDG goals, serving to benefit society while reinforcing its brand and long-term mission. ^[3]

Media Attributions

Figure 5.1: United Nations Sustainable Development Goals. © United Nations, All Rights Reserved. Used according to the SDG Guidelines AUG 2019 Final. The content of this publication has not been approved by the United Nations and does not reflect the views of the United Nations or its officials or Member States.