Corporate Responsibility is also known as corporate social responsibility, responsible business, corporate citizenship etc. It is a form of corporate self regulation integrated into business. This means that business itself would monitor and ensure its adherence to law, ethical standards and international norms.
Every business must undertake the responsibility for the impact of its activities on the environment, consumers, employees and communities. It should proactively promote public interest and avoid practices that harm the growth and development, irrespective of the legal angle.
Money cannot compensate for the damage that has been done as some health problems are irreversible. The imposition of Government regulations, tariffs, environmental restrictions and restrictions on exploitation of labour ensures corporate responsibility. Added to this, consumers are increasingly aware of the environmental and social implications of their day to day consumer decisions. This further motivates corporates to maintain responsible business.
Incorporating responsibility turns out profitable for businesses as public support is mandatory for them to widen their prospects in the market, in this age of Global Competition. Thus, corporate social responsibility ensures the inclusion of public interests into corporate decision making.