CSR can be defined as the way firms integrate social, environmental and economic concerns into their values, culture, decision making, strategy and operations in a transparent and accountable manner, and thereby establish better practices within the firm, create wealth and improve society. 

CSR is concerned with treating the stakeholders of the firm ethically or in a responsible manner. Stakeholders exist both within the firm and outside. The wider aim of social responsibility is to create higher and better standards of living, while preserving the profitability of the corporation, for people both within and outside the corporation.  There are a wide variety of concepts and definitions associated with the term “corporate social responsibility”, but there is no general agreement of terms.   The World Business Council for Sustainable Development has described CSR as the business contribution to sustainable economic development. Building on a base of compliance with legislation and regulations, CSR typically includes "beyond law" commitments and activities pertaining to:  

Corporate governance and ethics 

• Health and safety 
• Environmental stewardship 
• Human rights (including core labour rights) 
• Human resource management 
• Community involvement, development and investment 
• Involvement of and respect for Aboriginal peoples 
• Corporate philanthropy and employee volunteering 
• Customer satisfaction and adherence to principles of fair competition 
• Anti-bribery and anti-corruption measures 
• Accountability, transparency and performance reporting 
• Supplier relations, for both domestic and international supply chains 

CSR is necessarily an evolving term that does not have a standard definition or a fully recognized set of specific criteria. The basic premise is the understanding that businesses play a key role in job and wealth creation in society. CSR has become relevant today as it helps corporations achieve a balance or integration of economic, environmental, and social imperatives, while at the same time addressing shareholder and stakeholder expectations.

The way businesses engage/involve the shareholders, employees, customers, suppliers, governments, non-governmental organizations, international organizations, and other stakeholders is usually a key feature of the concept. While business compliance with laws and regulations on social, environmental and economic objectives set the official level of CSR performance, CSR is often understood as involving the private sector commitments and activities that extend beyond this foundation of compliance with laws. From a progressive business perspective, CSR usually involves focusing on new opportunities as a way to respond to interrelated economic, societal and environmental demands in the marketplace. 

Many firms believe that this focus provides a clear competitive advantage and stimulates corporate innovation. CSR aims to bring about sustainable development which has been defined as "development that meets the needs of the present without compromising the ability of future generations to meet their own needs". CSR overlaps, and often is synonymous with many features of other related concepts such as corporate sustainability, corporate accountability, corporate responsibility, corporate citizenship, corporate stewardship, etc. CSR commitments and activities typically address aspects of a firm's behaviour (including its policies and practices) with respect to such key elements as; health and safety, environmental protection, human rights, human resource management practices, corporate governance, community development, and consumer protection, labour protection, supplier relations, business ethics, and stakeholder rights. The concept of CSR is not new to Indian companies. However, what is new is the way it has caught on with Indian corporate and the direct involvement of employees in implementation of these projects. Dedicated departments in most organizations are looking into much more than just funding or getting involved in one-time projects. CSR activities have their advantages.

The benefits are in terms of building a positive image and encouraging social involvement of employees, which in turn develops a sense of loyalty for the organisation. CSR activities help bond employees as a team, and with the organisation, which in turn helps in creating a dedicated workforce that is proud of its employer. With serious money and human resources involved, how does it benefit the organization? It is not uncommon to hear of rumors that in many cases no actual work was done and projects were shown on paper to gain tax exemptions. Most companies however strongly deny such allegations as funds are strictly dedicated to such projects and monitored by company boards. CSR is increasingly becoming a part of corporate governance.  

Yet another allegation is that CSR is just a brand building exercise. Companies argue that getting associated with a cause might create an apparent impact but that does not generate any tangible profits. While it does help develop their brand and convey to the public that it is a socially conscientious company, it is natural fallout and not a deliberate attempt. Kalpana Jaishankar, Director HR, Geometric Software Solutions believes that organizations today cannot have a ‘how I can benefit?’ attitude as employees are sensitive to such issues.   

However, one of the biggest advantages of such activities is the development of internal branding among employees. “Employees feel a sense of pride when they are involved in such activities which in turn help in retaining them. Similarly, such activities also in a small way contribute towards image building. Besides, with hectic work schedules, these activities help in de-stressing many employees and help in developing more evolved and conscientious human beings. 

CSR can be defined as the way firms integrate social, environmental and economic concerns into their values, culture, decision making, strategy and operations in a transparent and accountable manner, and thereby establish better practices within the firm, create wealth and improve society.