Social Responsibility

A concept that companies, organizations, and individuals should consider the impact of their activities on society and the environment and contribute to the public good, which has evolved into CSR and

Social Responsibility

Overview

Social responsibility is a concept that members of society—individuals, companies, governments, non-profit organizations, and others—are responsible for the impact of their activities on society and the environment and should contribute to the public good beyond the pursuit of profit. In particular, corporate social responsibility (CSR) has become a core agenda in modern management studies and economic discourse, and in the 21st century it expanded into the framework of environmental, social, and governance (ESG). Social responsibility is distinguished from mere regulatory compliance in that it is a voluntary ethical practice beyond legal obligations.

Main Content

Origins and Development of the Concept

  • Howard R. Bowen's 1953 book Social Responsibilities of the Businessman is regarded as the starting point of modern CSR discussion.
  • In the 1960s–70s, Milton Friedman's claim that the sole responsibility of business is to maximize profit conflicted with R. Edward Freeman's stakeholder theory, which holds that all stakeholders should be considered.
  • Freeman's 1984 Strategic Management: A Stakeholder Approach presented an alternative paradigm to shareholder capitalism.
  • Since the 1990s, John Elkington's triple bottom line (people, planet, profit) spread, establishing a trend of measuring economic, environmental, and social performance together.

Corporate Social Responsibility (CSR)

CSR refers to activities in which companies voluntarily integrate social and environmental values into management. Representative areas are as follows.

  • Economic responsibility: fair profit creation, job creation, tax payment
  • Legal responsibility: legal compliance, anti-corruption, fair trade
  • Ethical responsibility: respect for human rights, protection of labor rights, consumer protection
  • Philanthropic responsibility: donations, volunteer service, community contribution

Creating Shared Value (CSV) and Strategic Social Contribution

Michael Porter and Mark Kramer proposed CSV (Creating Shared Value) through Harvard Business Review in 2011. CSV is an approach that combines solving social problems with a company's core business model to create both competitiveness and social value simultaneously. It differs in that it goes beyond the limitation of CSR being perceived as a cost or supplementary activity and turns social problems into new market opportunities.

ESG Management

ESG stands for Environment, Social, and Governance and has developed into a non-financial evaluation criterion for investors. Social responsibility directly corresponds to the S area of ESG, and labor practices, human rights, diversity, community relations, product safety, etc. are measured as key indicators. The UN Principles for Responsible Investment (PRI) announced in 2006 and the UN Sustainable Development Goals (SDGs) in 2015 became the institutional foundation for the spread of ESG.

International Standards and Norms

  • ISO 26000 (2010): An international standard on the social responsibility of organizations, presenting seven core subjects (organizational governance, human rights, labor practices, the environment, fair operating practices, consumer issues, and community involvement).
  • UN Global Compact (2000): Ten principles on human rights, labor, the environment, and anti-corruption.
  • OECD Guidelines for Multinational Enterprises: Intergovernmental recommendations on responsible business conduct.
  • EU Corporate Sustainability Reporting Directive (CSRD): Mandates sustainability information disclosure by large companies.

Social Responsibility of Individuals and the Public Sector

Social responsibility is not limited to companies. Individuals' civic responsibility (voting, volunteering, ethical consumption), the social responsibility of governments and public institutions (transparency, fairness, protection of vulnerable groups), and the social responsibility of universities and research institutions (giving back knowledge, research ethics) are also discussed in the same context. In particular, ethical consumption and monitoring of greenwashing show the trend in which consumers emerge as subjects of social responsibility.

Recent Trends

  • As the EU's CSRD and Corporate Sustainability Due Diligence Directive (CSDDD) were implemented in stages in 2024, the trend of social responsibility shifting from voluntary ethics to legal obligation became clear.
  • As the International Sustainability Standards Board (ISSB)'s IFRS S1 and S2 disclosure standards are introduced in various countries, climate and social information disclosure is being integrated with financial disclosure.
  • In 2024–2025, regulations on greenwashing and social washing are being strengthened, and regulatory reform is underway in response to controversies over the credibility of ESG rating agencies.
  • With the spread of generative AI, the social responsibility of AI (responsible AI), such as algorithmic bias, data privacy, and labor displacement, has emerged as a new agenda.
  • As responses to the climate crisis and human rights due diligence expand across supply chains, the scope of responsibility is widening to include management of partner companies.
  • Meanwhile, political and ideological debates over social responsibility are intensifying, as seen in anti-ESG political backlash against ESG investment in some U.S. states.

Related Topics

  • [[ESG]]
  • [[기업의 사회적 책임]]
  • [[지속가능발전목표]]
  • [[이해관계자 이론]]
  • [[윤리적 소비]]
  • [[공유가치창출]]