United States of America: Internal Commitments and External Pressures

Abstract

With the varied definitions of corporate social responsibility (CSR) we examine the motivation for firms’ CSR activities, how firms credibly demonstrate CSR, and firms’ CSR reporting. These three topics, i.e., why firms participate, how firms participate, and CSR reporting rubrics, help describe and explain the core question of this chapter: what is the practice of CSR in the United States (US)? We argue that the practice of CSR in the US is evolving and accelerating at an uneven pace across industries and within firms because of differences in beliefs in CSR, leadership, employee pressures, government demands, and community input. This chapter suggests examining specific stakeholder relations and how firms cocreate value that leads to a more nuanced view of CSR. The practice of CSR in the US continues to be a matter of choice within a market-driven economy. This freedom to choose underlies many CSR activities. CSR for consumers may include better, safer, and quality products. For employees, CSR is about pride, retention, and being an employer of choice. CSR is a differentiator from rival firms – especially in fiercely competitive markets. For policy makers, CSR is about building trust, credibility, and repetitive access. For suppliers, CSR is about being the partner of choice. And for communities, CSR is about pride, sponsorships, and inclusion. CSR in U.S. firms is the sum of these stakeholder systems plus the innovative creativity resulting in new product/markets to serve shifting social demands.