Corporate Social Responsibility (CSR)

  • Glossary
  • Corporate Social Responsibility (CSR)

CSR is a corporate approach to integrating social and environmental aspects into business practices.

Companies that implement CSR effectively take responsibility for their impacts on society and the environment, often going beyond legal requirements. CSR goals can be implemented through ethical business practices, social commitment, environmental protection and transparent reporting.

Software in the area of CSR

Software solutions can help achieve these goals in the following areas:

  1. Data management and analysis: efficiently collect and analyze data on social and environmental impacts to make informed decisions.

  2. Sustainability reporting: automated generation of transparent reports to inform stakeholders about CSR measures.

  3. Supplier management: monitoring and evaluation of supplier practices in terms of social and environmental standards.

  4. Ethical compliance management: ensuring that company practices comply with ethical standards and legal requirements.
  5. Stakeholder engagement: enhanced communication with stakeholders through the use of surveys, consultations and other feedback mechanisms.

  6. Process optimization: more efficient business processes to save resources and reduce the environmental footprint.


The governance criterion focuses on aspects of corporate leadership and control, including:

  • Tax Strategy: How does the company structure its tax policy, ensuring transparency and adherence to tax regulations within its global operations and supply chains?
  • Executive Compensation: What framework governs the compensation of executive board members, considering equity and fairness across the organization and its supply chain?
  • Donations and Lobbying: What contributions does the company make to charitable causes, and how does it conduct lobbying activities in alignment with ethical standards, including those within its supply chain?
  • Corruption and Bribery: To what extent does the company combat corruption and bribery within its operations and supply chain?
  • Diversity and Composition of the Board of Directors: How diverse is the company's board of directors, extending diversity considerations to its supply chain governance?

Example: Complying with Supply Chain Laws like the German Supply Chain Law (LkSG) or the Corporate Sustainability Due Diligence Directive (CSDDD) and ensuring governance practices that foster ethical behavior throughout the supply chain.

ESG principles promote transparency, ethical conduct, and effective corporate governance, not only within a company's operations but also throughout its intricate supply chains.