Corporate social responsibility (CSR) is a business model that helps companies be good citizens. Just like individuals want to keep their neighborhood clean, safe, and be good neighbors, CSR applies the same principles to corporations. A company that is dumping waste into rivers or billowing smoke into the atmosphere is not practicing CSR. Companies that take measures to keep the environment clean, ensure women have equal pay, and participates in local community fundraisers are practicing CSR.
CSR is generally a practice of large organizations. For smaller firms, CSR is often too costly. Also, larger corporations have more impact on the environment, society, and their community. CSR is a method for balancing that impact.