Contents
Corporate social responsibility (CSR) occurs when businesses actively seek to make a positive social, environmental or cultural impact through their practices. It is a concept that is increasingly visible in today’s marketplace. Companies are expected to show that they are genuinely committed to social and environmental causes, rather than just paying lip service.
It’s important to know what exactly corporate social responsibility entails and how to avoid being seen as a company that does it all for show.
What Is Corporate Social Responsibility?
The practice of corporate social responsibility (CSR) involves a company taking full account of its impact on all stakeholders, not just its bottom line. In 2025, a robust CSR strategy means integrating sustainable, ethical practices into every facet of your operations – from sourcing and production to employee welfare and community engagement.
Put simply, you want to do good. This could include giving back to the community through volunteering initiatives, supporting social justice projects, or adopting sustainability innovations that benefit both people and the planet.
Not only is CSR great for your branding, but it’s also a rewarding experience for you and your employees, resulting in higher morale and a stronger organisational culture.
What Does It Mean To Take On Corporate Social Responsibility?
Taking on CSR can look different for every company, but the key principle remains: your actions must generate genuine benefits for the wider community. Whether it’s reducing your environmental impact, maintaining high ethical standards among your team (as highlighted in our workplace harassment and discrimination guidance), or ensuring your products are produced through fair practices, the goal is to make a meaningful difference.
The definition of what constitutes CSR is broad, which is why there are so many innovative ways to implement it in your business.
Accountable To Shareholders
Shareholders are increasingly prioritising ethical practices alongside profitability. Demonstrating a commitment to CSR not only builds trust but also encourages investment. Companies now routinely share detailed reports on their CSR initiatives as part of their accountability to investors – a practice you can explore further in our business set up resources.
Give Back To Society
Another key aspect of CSR is being actively involved in the community. Businesses frequently partner with local charities or organisations to support social causes through financial donations, volunteer work, or by using their platforms to raise awareness. For more guidance on structuring your social initiatives, have a look at our Charity Set Up services.
If you’re an ecommerce business, your digital presence expands your ability to promote and support important causes, reaching a broader audience than ever before.
Environmental Concerns
Reducing your carbon footprint and investing in sustainable products are major priorities in 2025. Consumers today expect companies to adopt genuine green practices – whether through ethical sourcing, utilising recycled materials, or supporting conservation initiatives.
Many businesses now innovate by packaging products using recycled materials, using renewable energy sources, or engaging in projects that actively improve the environment, such as tree planting or wildlife conservation. Such initiatives often include donating a portion of profits to environmental causes, ensuring a tangible impact on sustainability.
Workplace Ethics
Workplace ethics govern how internal operations are managed to ensure fairness, transparency and respect for all employees. It’s common for companies to revisit their policies on inclusivity, salary transparency and diversity to continually improve their ethical standards. Our insights on workplace harassment and discrimination underscore the importance of a positive and inclusive work environment.
By refining internal practices – such as through regular sensitivity training and equitable salary structures – companies not only enhance employee satisfaction but also build stronger, more resilient brands.
Why Should My Business Implement Corporate Social Responsibility?
There is growing evidence in 2025 that CSR is integral to business success. A recent report by Harvard Business School revealed that 80% of consumers are keen to support companies that prioritise social responsibility, and 78% of investors are more likely to invest in businesses with robust ethical practices.
CSR not only boosts your company’s public image but can also expand your investor base and customer reach. As market demands evolve, integrating genuine CSR initiatives into your business strategy is essential for staying competitive and relevant.
Ultimately, embracing CSR is a rewarding endeavour that reinforces your commitment to both your community and your long-term business success.
In today’s dynamic market, CSR is evolving beyond compliance. Companies are now leveraging digital platforms and innovative strategies – whether it’s through an intellectual property strategy that supports sustainable design or forging authentic community partnerships – to create real social impact. These modern approaches underscore the role of responsible leadership in 2025.
Is This Like Setting Up A Charity Or Not-For-Profit?
No, a Charity and a Not For Profit (NFP) enterprise are two distinct structures. CSR is about ensuring your existing business practices positively benefit the wider community, rather than forming a separate entity.
However, some companies choose to establish a charitable or NFP arm to further amplify their social impact. For example, McDonald’s operates the Ronald McDonald House Charities to support families with terminally ill children.
If you’re considering setting up a separate charity or NFP, our expert lawyers are on hand to help you navigate the process smoothly.
What Is Greenwashing?
As CSR gains traction in 2025, some companies have attempted to appear more ethical than they truly are-a practice known as greenwashing. This occurs when businesses exaggerate or mislead consumers about the extent of their positive environmental impacts to enhance their reputation.
For example, BMW once claimed their i3 was an environmentally friendly car with zero emissions, a claim that was later disproved and led to global scrutiny. Similarly, fashion brands like H&M and Zara have faced accusations of greenwashing, even as their mass production practices continue to contribute to carbon emissions and waste.
Before promoting your company’s sustainable achievements, ensure that your practices are genuinely effective and transparently communicated. Authenticity is key to building long-lasting trust with your customers.
What Businesses Actually Do Undertake Corporate Social Responsibility?
Ben and Jerry’s is a well-known ice cream brand that has consistently demonstrated a commitment to CSR by launching products and campaigns aligned with social and environmental causes. Their initiatives include introducing a vegan ice cream range to reduce dairy dependency and supporting campaigns related to social justice, such as Black Lives Matter and the Children’s Defence Fund.
A contemporary example of CSR in action is Dan Price’s Gravity Payments. In an inspiring move that made headlines in 2025, CEO Dan Price opted to pay all employees a minimum of $70,000, forgoing his own salary. This decision not only boosted internal morale but also challenged traditional business practices around wage distribution.
Where Do I Start?
CSR can be implemented in a number of effective ways. Begin by assessing your current practices and identifying areas for improvement – from your supply chain ethics to your internal workplace policies. The key is to ensure every initiative genuinely benefits the wider community or environment.
Consider starting small with measures such as adopting recycled materials, setting up employee volunteer days, or partnering with local charities. Our comprehensive company set up guide is an excellent resource to help you align your business practices with your CSR goals.
Need Help?
While CSR offers numerous benefits, developing a robust strategy can sometimes feel overwhelming. At Sprintlaw, our experienced legal team specialises in supporting both traditional businesses and not-for-profits. We’re here to help you design and implement CSR initiatives that align with your business vision.
If you would like to discuss how your company can make a meaningful, positive impact on society, please reach out to our team of legal consultants at 1800 730 617 or team@sprintlaw.com.au for a free, no-obligation chat.
By embedding CSR into your operations, you not only embrace a greater purpose but also future-proof your business against evolving market and regulatory demands. In 2025, responsible practices are synonymous with forward-thinking leadership-so why not take that step today?
Meet some of our Business Set Up Lawyers
Get in touch now!
We'll get back to you within 1 business day.
Top 3 Legal Mistakes
Book in a free consultation with us to discuss your legal needs.