Corporate Social Responsibility Case Study

Corporate social responsibility (CSR) is similar to an individual’s social responsibility. An individual who is socially responsible is aware of how their decisions affect the environment. Corporate social responsibility can be define as “how well a company meets its economic, legal, ethical, and discretionary responsibilities” (Peter & Sarah, p. 51). Corporate social responsibility holds businesses accountable to stakeholders such as consumers, in areas of concern such as environmental factors, community and society in general. As a result successful CSR initiatives creates a sustainable company in all ways: financially, ethically, environmentally, and socially. The moral problem with CSR is based on the belief that “CSR would be a cost that would be higher than the perceived benefits. By financially supporting “charity” based initiatives, firms are not performing their fiduciary duty to their stockholders” (Peter & Sarah, p. 49).
Pyramid of Corporate Social Responsibility
There are four components to CSR, these components or responsibilities can be arranged in a

Patagonia, Inc. is a clothing company which focuses mainly on high-end outdoor gear targeted towards skiers, surfers, climbers, etc. Patagonia is recognized for its exceptional corporate social responsibility contributions to many environmental groups. Patagonia’s mission statement is to “Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis” (Company Info). With these values, Patagonia has committed to “donating 1% of their total sales or 10% of their profit, whichever is more, to environmental groups” (Peter & Sarah, p. 390). Patagonia’s common thread initiative that is based on reduce, repair, reuse, recycle, and reimage helps reduce environmental impact. It is this same environment that supports both businesses and