Corporate social responsibility: how it influences the economy and employment

The business world is at a turning point: companies with ethical, transparent commitments must fully embrace responsibility for the effects their decisions and actions have on society and the environment.

This broader vision is becoming a cornerstone for building more resilient companies—able to overcome crises and thrive in the medium and long term—and serves as a genuine engine of economic growth and employment.

But what exactly do we mean by Corporate Social Responsibility (CSR)? Find out in this article from OBS Business School, part of Planeta Formación y Universidades, one of the leading networks in higher education.

What is corporate social responsibility (CSR)

According to the international standard ISO 26000, it is an organization’s commitment to the impacts of its decisions and activities on society and the environment—demonstrated through transparent and ethical behavior that contributes to sustainable development, including societal health and well‑being.

In recent years, the term “Corporate Sustainability” has gained considerable traction and is often used interchangeably with CSR.

This shift is largely due to CSR having been historically linked to social action and philanthropy. As experts Alberto Andreu and José Luis Fernández note in From CSR to Corporate Sustainability: A Necessary Evolution for Value Creation (Ediciones Deusto, Ref. No. 3876), CSR has often been overshadowed by a “halo effect” related to social programs and corporate philanthropy—diluting its true meaning.

To me, CSR should be considered a strategic business pillar that equips companies with the essential tools to become sustainable over the medium and long term.

It addresses how companies should manage the impacts that their operations and processes generate on stakeholders—partners, employees, customers, suppliers, local communities—the planet, and society as a whole. It materializes in specific, measurable actions on the path toward sustainability. From this standpoint, CSR is not an end in itself, but the vehicle through which a company becomes sustainable.

Semantically, I agree with Andreu and Fernández: consolidating the concept of “Corporate Sustainability” helps move us away from the aforementioned halo effect.

Importance of corporate social responsibility in today's environment

Embracing CSR involves a genuine transformation of business models—integrating Environmental, Social, and Governance (ESG) criteria into every company operation and decision, placing them at the core of corporate strategy.

Today, CSR is not optional—it has become a license to operate. Its significance is clear in terms of reputation, talent acquisition, investment, and business resilience in the face of global challenges.

This trend is driven by growing social awareness, tightening regulatory pressures (e.g., EU directives on reporting, taxonomy, due diligence, greenwashing), and demands from an increasingly discerning market.

Impact of corporate social responsibility on the economy

CSR is more than mere marketing or catchy slogans—it is a holistic, integrated approach that positions businesses to build a sustainable future.

By adopting best practices—optimizing resource use, cutting emissions, promoting fair labor, investing in renewable energy, ensuring supply‑chain transparency, and fostering diversity and inclusion—companies secure their long‑term viability and profitability.

This translates into improved financial performance by mitigating risks—environmental (such as climate change or resource scarcity) and social (such as human rights and community impact)—while seizing new business opportunities.

The effects of this transformation go well beyond the company itself:

More resilient companies

When companies embrace sustainability principles, they collectively boost resilience across local, national, and global economies.

We're entering an era of “extended responsibility,” where companies are accountable not only for direct impacts but also for those within their entire supply chain.

Ensuring a sustainable supply chain reverberates beyond national borders, enhances competitiveness, and fosters collaborative networks across the production ecosystem.

Nature-related risks and their macroeconomic consequences

Humanity’s historical impact on nature is evident worldwide, but it is today’s intensive consumption model that causes the most harm.

By adopting sustainable practices, companies can lead a necessary transformation toward a less intensive consumption model. This transition is not optional—it is crucial. Companies must be at the forefront of this change.

A successful transition demands careful planning, strategic investment, and supportive policies and regulation. Collaboration among governments, businesses, and civil society is essential for transforming CSR into sustainable economic development.

Contribution to sustainable development

When companies adopt sustainable practices, they foster a more balanced growth model—reducing dependence on non‑renewable resources and boosting sectors like renewables and the circular economy.

This shift helps mitigate macroeconomic risks linked to climate change. Sustainable businesses tend to develop more efficient, cleaner technologies—strengthening a country’s competitiveness in international trade.

Overall, these impacts promote more inclusive and innovative economic growth while tackling core social and environmental challenges.

Improving business competitiveness

Responsible companies align with consumer expectations, reduce costs and risks, stimulate innovation, and strengthen their reputation—all of which significantly enhance competitiveness.

According to Forética’s 2024 report Competitiveness and Impact: The Future of Sustainability, sustainable companies enjoy a valuation premium in financial markets, making them attractive to both investors and conscious consumers.

Promoting innovation and efficiency

Innovation is essential for creating products and services that reduce environmental impact—fostering clean technologies and novel business models.

Addressing social and environmental challenges requires creative thinking. CSR encourages companies to develop efficient, innovative strategies and improve management practices.

Open innovation—leveraging collaborative “rocket” processes—invites external input, enabling partnerships between companies and universities, business schools, tech centers, clients, suppliers, and professionals.

Influence of corporate social responsibility on employment

CSR places people at the heart of business strategy, becoming a foundation for long‑term success.

CSR‑driven values and principles fuel the social economy, supporting initiatives focused on collective well‑being, equity, and inclusion.

This strengthens new business dynamics that not only generate jobs but also advance fairer, more sustainable production models.

Job creation

According to the 2025 Trends study from the Global Compact in Spain, “The sustainable transition could create 24 million new jobs by 2030, according to ILO estimates.” The report also notes that sustainably trained workers have an employment rate over 76% of Spanish companies have a sustainability department or manager, and 86% of IBEX executives receive sustainability‑linked pay.

Beyond statistics, CSR drives job growth in sectors like renewable energy, waste management, sustainable agriculture, and social services. Even as some traditional roles evolve or disappear, CSR fosters retraining and new roles and qualifications within companies.

Talent retention and loyalty

Today’s professionals—especially younger generations—seek organizations with clear purpose and genuine sustainability commitments. Such companies attract and retain top talent.

However, companies must cultivate a supportive culture and sustainable leadership. Forward‑thinking leadership fosters a change‑oriented culture that seizes market opportunities. Agile organizational structures that view people as strategic allies, establish lifelong‑learning policies, emphasize teamwork, and encourage open communication are key.

Improvement of working conditions

We face a shifting map of social risks—climate change, resource scarcity, inequality, human‑rights issues—that must be integrated into corporate strategies.

Companies embracing CSR are better equipped to manage these risks, contributing to a stable and resilient economy.

Investing in employee well‑being, professional development, and safer workplaces reduces costs and boosts productivity. A positive work environment—remember George Elton Mayo’s maxim, “A happy worker is a productive worker”—enhances both morale and performance.

Conclusion

The business world is clearly transitioning toward a sustainable future, where sustainability becomes a defining element and competitive advantage—and organizations themselves become architects of a better world.

To deepen your understanding of CSR and become a true agent of change, the Master’s Degree in CSR and Sustainable Leadership is an excellent choice. Taught by OBS Business School—which was recognized as the world’s first fully online business school by QS Stars—this program is part of Planeta Formación y Universidades, a global leader in higher education, empowering talent and innovation through teaching.