Which term describes the accountability of businesses for their actions towards stakeholders and society?

Corporate Social Responsibility (CSR) encompasses the idea that businesses have an obligation to operate in ways that benefit their stakeholders and society as a whole. This concept goes beyond just making a profit; it involves recognizing the impact that business operations have on the environment, social structures, and economic systems.

CSR encourages companies to engage in ethical practices, contribute to community development, and act in ways that enhance the welfare of society. It captures the essence of accountability, as businesses must consider how their choices affect their stakeholders—including employees, customers, suppliers, and the community at large. This commitment to responsible behavior helps build public trust and can lead to long-term success for the company.

Business ethics, while related, tends to focus more narrowly on the moral principles that govern an organization's behavior rather than the broader impact on society and stakeholders. Compliance is concerned with adhering to laws and regulations rather than the social and ethical dimensions of business practices. Risk management, in contrast, deals with identifying and mitigating potential risks to the organization rather than the broader accountability to external parties. This is why Corporate Social Responsibility is the most accurate term to describe the accountability of businesses towards their stakeholders and society.