{"id":5208,"date":"2025-06-02T17:49:25","date_gmt":"2025-06-02T17:49:25","guid":{"rendered":"https:\/\/aomtodayprod.wpenginepowered.com\/?p=5208"},"modified":"2025-07-09T15:48:20","modified_gmt":"2025-07-09T15:48:20","slug":"why-csr-is-still-vital-for-companies","status":"publish","type":"post","link":"https:\/\/www.aom.org\/today\/why-csr-is-still-vital-for-companies\/","title":{"rendered":"Why CSR Is Still Vital for Companies"},"content":{"rendered":"

By Nick Keppler<\/a><\/p>\n

Any act of corporate wrongdoing\u2014real or perceived\u2014can be publicized worldwide instantly via the internet and social media. This has made ideas of sustainability and corporate social responsibility (CSR)\u2014which includes organizations\u2019 initiatives geared toward achieving environmental, ethical, philanthropic, and financial objectives\u2014increasingly important and far-ranging, said Academy of Management Scholar Herman Aguinis<\/a> of the George Washington School of Business.<\/p>\n

\u201cBecause of information flow across the internet, now we know about sweatshops, we know about companies polluting the environment, and we know about companies that are abusing and taking advantage of farmers and not providing benefits,\u201d he said.<\/p>\n

Not coincidentally, measurements of CSR initiatives that make a positive societal impact<\/a> have grown not just to consider the company\u2019s adherence to laws and regulations but also its impact on globalization, technological developments, fair trade, workers\u2019 rights, pay equity, pollution, habitat destruction, and climate change.<\/p>\n

\u201cThe expectations have changed mostly because of pressure from the outside,\u201d Aguinis said.<\/p>\n

To manage an increasingly complex set of considerations related to CSR and sustainability, many companies have emphasized the three Ps, Aguinis said: people, the planet, and profit.<\/p>\n

The \u201cpeople\u201d aspect does not only encompass employees and shareholders but also a wide span of stakeholders, including \u201cthe communities you serve, your customers, the communities around your business locations,\u201d he said.<\/p>\n

For example, Intel, a computer components manufacturer, holds town-hall meetings before finalizing plans to open new chip plants.<\/p>\n

Small steps like these make operating the business easier and bolster its reputation, Aguinis said.<\/p>\n

\u201cThe argument is that you can do good and do well at the same time, that those things go hand in hand, is replacing an older cynical argument that some economists have proposed, which is that your priority and loyalty group and number-one stakeholder is your shareholders,\u201d he said. \u201c\u2018You should just be making money for them, and anything else that you do that goes outside of that is not your mandate, not your responsibility.\u2019\u201d<\/p>\n

That thinking\u2014exemplified by American economist Milton Friedman\u2014will not help companies stand up to increasing social pressure and could hurt their reputation, Aguinis said.<\/p>\n

\u201cThe CSR movement has changed because customers, consumers, vendors, and partners want companies to do more to impact society positively.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

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This has made ideas of sustainability and corporate social responsibility (CSR)\u2014which includes organizations\u2019 initiatives geared toward achieving environmental, ethical, philanthropic, and financial objectives\u2014increasingly important and far-ranging, said Academy of Management Scholar Herman Aguinis of the […]<\/p>\n","protected":false},"author":12,"featured_media":4475,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[27,26,72,19],"tags":[],"sp_smart_badges":[],"ppma_author":[840],"class_list":["post-5208","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-c-suite","category-corporate-social-responsibility","category-ethics","category-leadership"],"acf":[],"yoast_head":"\nWhy CSR Is Still Vital for Companies - Academy of Management Today<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.aom.org\/today\/why-csr-is-still-vital-for-companies\/\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Nick Keppler\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/why-csr-is-still-vital-for-companies\\\/#article\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/why-csr-is-still-vital-for-companies\\\/\"},\"author\":{\"name\":\"Nick Keppler\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/#\\\/schema\\\/person\\\/1b8aff6a6e3f22d0d813c97e6aab7149\"},\"headline\":\"Why CSR Is Still Vital for Companies\",\"datePublished\":\"2025-06-02T17:49:25+00:00\",\"dateModified\":\"2025-07-09T15:48:20+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/why-csr-is-still-vital-for-companies\\\/\"},\"wordCount\":380,\"commentCount\":0,\"image\":{\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/why-csr-is-still-vital-for-companies\\\/#primaryimage\"},\"thumbnailUrl\":\"https:\\\/\\\/www.aom.org\\\/today\\\/wp-content\\\/uploads\\\/2025\\\/04\\\/CSR-coins-green-earth-globe_shutterstock_2505760787-scaled.jpg\",\"articleSection\":[\"C-SUITE\",\"CORPORATE SOCIAL RESPONSIBILITY\",\"ETHICS\",\"LEADERSHIP\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\\\/\\\/www.aom.org\\\/today\\\/why-csr-is-still-vital-for-companies\\\/#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.aom.org\\\/today\\\/why-csr-is-still-vital-for-companies\\\/\",\"url\":\"https:\\\/\\\/www.aom.org\\\/today\\\/why-csr-is-still-vital-for-companies\\\/\",\"name\":\"Why CSR Is Still Vital for Companies - 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