Over the past decade, there has been increasing interest in the concept of corporate social responsibility (CSR) and the proposition that corporations should take into account the interests of stakeholders other than their shareholders. Support for this idea has come not only from corporations themselves, but from national governments, extra-national organizations such as the United Nations, and non-governmental organizations. As a result, recent years have seen legislative efforts to encourage or even mandate some form of CSR, with the reporting of CSR activities recently enshrined in Danish law, and proposed legislation in Canada which seeks to regulate the activities of Canadian mining companies in developing nations.

However, questions have arisen as to whether CSR advances a consistent set of interests and principles, and whether it effectively serves the societal interests it purports to advance. CSR may be viewed as the principle that corporations should respond to interests apart from, and in addition to, those of their shareholders. However, the definitions of CSR advanced by governments and international organizations have tended to focus on corporate efforts to balance their economic activities with broader stakeholder interests.

For example, the Government of Canada takes the position that “CSR is generally understood to be the way a company achieves a balance or integration of economic, environmental and social imperatives, while at the same time addressing shareholder and stakeholder expectations.”

It also suggests that CSR is “an evolving term that does not have a standard definition or a fully recognized set of specific criteria.”

A similar definition was adopted by the European Commission in 2006 as part of its most recent policy communication on CSR, which defined it as “a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis.”

The United Kingdom defines CSR as “how business takes account of its economic, social and environmental impacts in the way it operates — maximizing the benefits and minimizing the downsides.”

Finally, what may be the broadest definition is offered by the United Nations: “CSR can be defined as the overall contribution of business to sustainable development.”

The World Business Council for Sustainable Development (WBCSD) provides that “corporate social responsibility is the commitment of business to contribute to sustainable economic development, working with employees, their families, the local community and society at large to improve their quality of life.”

A single definition for CSR may be elusive or even undesirable, clear themes emerge when one considers corporate efforts to behave in a socially responsible manner. In particular, CSR activities appear to focus on four common ends: human rights, labour standards, safety standards and issues relating to occupational health and safety and environmental responsibility.

It has been reported that majority of companies currently publicly report their efforts on environmental and social issues, with approximately 90 per cent of European companies and 59 per cent of American companies including such information in their annual reports, or separate companion reports.

In Canada, such activities appear to have increased dramatically over the past decade. While the reporting rate for companies listed on the Toronto Stock Exchange was 35 per cent in 2001, it had since risen to 60 per cent in 2003 and stands at 80 per cent as of 2007.

Meanwhile, even critics of CSR note that it has “won the battle of ideas.” The impetus behind this dramatic rise in participation in CSR comes from several sources, including public demand, the activities of NGOs, government encouragement or legislation, as well as voluntary action stemming from a corporation’s own business interests.