What concept involves a business acting in an ethical or responsible way?

Corporate Social Responsibility (CSR) is the concept that involves a business operating in an ethical and responsible manner, encompassing the idea that companies should not only focus on profit-making but also consider their impact on society and the environment. Businesses engaged in CSR take proactive steps to contribute positively to the community, uphold ethical standards, and ensure sustainable practices. This can include initiatives like reducing carbon footprints, supporting local charities, ensuring fair labor practices, and promoting diversity and inclusion within the workforce. CSR reflects a commitment to balancing the interests of stakeholders – including customers, employees, shareholders, and the wider community – while still pursuing business objectives.

In contrast, market segmentation focuses on dividing a market into distinct groups of buyers, sales forecasting is about predicting future sales for planning purposes, and profit margin analysis measures the profitability of a business. These concepts do not address the ethical dimensions and responsibilities a business has towards society, which is the essence of CSR.