Corporate Social Responsibility (CSR)

A business model that helps a company be socially accountable to itself, its stakeholders, and the public. By practicing corporate social responsibility, companies can be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental.

Outsourcing

The business practice of hiring a party outside a company to perform services and create goods that traditionally were performed in-house by the company's own employees and staff. Often used to cut costs or enhance flexibility.

Predatory pricing

The pricing of goods or services at such a low level that other suppliers cannot compete and are forced to leave the market. In the context of labor, it can refer to wages set so low that they barely cover the cost of living, if at all.

Living wage

A wage that is high enough to maintain a normal standard of living. This includes the ability to afford adequate shelter, food, and other necessities.

Minimum wage

The minimum amount per hour that workers are paid as mandated by law, which can be lower than the living wage.

Supply Chain Management (SCM)

The management of the flow of goods and services, which includes all processes that transform raw materials into final products. It involves the active streamlining of a business's supply-side activities to maximize customer value and gain a competitive advantage in the marketplace.

Stakeholder Engagement

The process by which an organization involves people who may be affected by the decisions it makes or can influence the implementation of its decisions. Stakeholder engagement is a key component of CSR, as it ensures that diverse groups affected by business operations (like workers, communities, investors, and customers) have a voice in the decision-making process.

Ethical Sourcing

The process of ensuring the products being sourced are obtained in a responsible and sustainable way, that the workers involved in making them are safe and treated fairly and that environmental and social impacts are taken into consideration during the sourcing process.

Corporate Governance

The system of rules, practices, and processes by which a firm is directed and controlled. Corporate governance essentially involves balancing the interests of a company's many stakeholders, such as shareholders, management, customers, suppliers, financiers, government, and the community.

Social Audit

A type of audit that evaluates how well a company is achieving its ethical and social responsibility goals. It helps organizations assess and manage the social impacts of their operations, ensuring accountability and transparency in business practices.

Greenwashing

The practice of making an unsubstantiated or misleading claim about the environmental benefits of a product, service, technology or company practice. Greenwashing can make a company appear to be more environmentally friendly than it really is.

Corporate Accountability

Refers to a publicly traded company's performance in non-financial areas such as social responsibility and environmental sustainability. Accountability implies that the company takes responsibility for its actions and their impact on the community and the environment.