Published on: 24th December 2025
Authored by: Tayyaba Amjad
University of London
1. Introduction
Corporate Social Responsibility (CSR) means companies taking responsibility not just for making money, but also for the well-being of people, the entertainment, and society. This includes actions like helping local communities, reducing pollution, donating to good causes supporting workers, and doing business fairly. In simple words, CSR is about doing what’s right—not just what’s profitable.
CSR is important because companies affect more than just their owners. Their choices impact employees, customers, nearby communities, and even the planet. When a company acts responsibly, it can build trust, improve its reputation, and often perform better in the long run. In the UK, CSR is better developed than in many countries. While it’s not enforced by a single law, there are many strong guidelines, reporting duties, and public expectations. Large companies especially are under pressure to act responsibly—by law, investors, and the public.
2. Legal Framework of CSR in the UK
The UK doesn’t have one specific law that makes CSR mandatory, but several rules and acts push companies toward responsible behaviour. One key piece of law is the Companies Act 2006, which says that company directors must consider not just profits but also employees, customers, communities, and the environment. Public companies in the UK must also report on their Environmental, Social and Governance (ESG) practices under non-financial reporting requirements. These include issues like human rights, anti-corruption, qnd environmental risks.
The UK Corporate Governance Code, though not law, gives guidence on ethical business, stakeholders engagement, and long term responsibility. The UK is also part of several international standards such as:
- UN Global Compact
- OECD Guidelines for Multinational Enterprises
- GRI (Global Reporting Initiative) Standards
These frameworks help companies structure their CSR and report it transparently.
3. Current CSR Practices in the UK
CSR in the UK includes a wide variety of actions that focus on helping people, protecting the environment, and improving workplace culture. Large companies such as Marks and Spencer, Unilever, and Tesco are known for their strong CSR programmes. These companies carry out CSR through activities like supporting local communities, reducing carbon emissions, promoting fair trade products and looking after their employees wellbeing. For Example many of them have set targets to reach net-zero emissions switched to eco friendly packaging and supported global supply chains that treat farmers fairly. They also invest in programmes related to mental health, equal pay, diversity and inclusion, women leadership and supporting low-income families through food donation schemes. These companies often punlish annual CSR or sustainability reports that show their progress and plans for the future.
During the COVID-19 pandemic, many UK businesses stepped forward to help society in meaningful ways. They donated personal protective equipment PPE) to hospitals set up food bank and offered mental health resources for both employees and the general public. Retailers like Tesco supported NHS workers while tech firms supported remote education for children in need. This crisis showed how CSR could go beyond business and make a real impact on everyday life.
Small and medium sized enterprises (SMEs) are also playing a role in CSR, although their contribution are usually on a smaller scale. Many SMEs support local schools or charity, reduce single use plastic, switch to green energy or use of supplier who follow ethical labour practices. Some focus on offering flexible work hours, paying fair wages or helping disadvantaged groups in their areas. However, many small businesses face challenges. Some lack the money or staff to run big CSR compagins. Other are unsure what activities count as CSR or how to measure impact. That said with the right support and awareness SMEs have great potential to contribute meaningfully to social responsibility in the UK.
4. Impact of CSR
CSR brings several benefits when done properly. For companies, it hepls build a strong public image and trust. Customers feel more connected to brands that care about society. Employees stay longer and work harder if they feel the comapny has good values. Investors are also paying more attention to CSR. Many look at ESG performance before investing. Research shows that UK companies with strong CSR often perform better financially with improved Return on Assets(ROA) and Return on Equity (ROE).
For society CSR can create jobs support education and health fight climate change and reduce inequality. It also improves how businesses are managed—making them more honest, transparent and accountable.
5. Challenges and Problems
Even in the UK, CSR faces some problems. First not all companies take it seriously. Some just do thw bare minimum to tick the box. Other use greenwashing which means pretending to be eco-friendly just for publicity. They may post reports or adverts but not do real work behind the scenes. Reporting standards though improving, still vary. Some companies give detailed CSR updatea while others arw vague or inconsistent. Also many small businesses find CSR confusing or expensive. They often don’t have a dedicated team for it.
Another issue is lack of enforcement. While CSR is encouraged most of it is still voluntary. Unless there’s public or investor pressure, some firms ignore it. More guidance, training and monitoring could help fix this.
6. Timeline of CSR in the UK
CSR in the UK has developed over many yeara and has gone through different stages. Before the 1990s most companies treated CSR as simple charity they would donate money to local events or causes but it wasn’t part of business strategy. Between 1995 and 2000, people started caring more about the environment and ethical investing, especially after big events like the Shell Brent Spar oil rig scandal which made many questions corporate responsibility. Then in 2006, the UK passed the Comapnies Act, which told comapany directors to think about more than just profit. They now had to consider the impact of their decision on workers, communities and the environment.
During the 2010s, CSR bemcame more professional and detailed. Companies began focusing on ESG (Environmental Social and Governance) reporting, climate chage and fairness in the workplace. In 2015 the UK adopted the UN’s Sustainability Development Goals which gave both the government and businesses a clear set of targets to work towards. Then, when COVID-19 hit in 2020 and 2021, CSR got even more attention. Many businesses helped with health support l, mental wellbeing and donations during the crisis.
In 2023 and 2024 there was a bigger push from both the government and investors for companies to be honest about their social and environmental impact. There were growing calls for stronger rules against fake CSR also known as greenwashing. Looking ahead to 2025 and beyond, it’s expected that more companies in the UK wil face rules, regular audits and pressure to show they care about more than just money.
7. The Future of CSR in the UK
CSR In the UK is moving fast but there’s still room to grow. First the government may increase mandatory ESG reporting especially for carbon footprint and human rights. More sectors might be required to publish sustainability data in detail. Second greenwashing must be addressed. Laws may be passed that punish falso CSR claims or demand third party verification. Consumers and investors are demanding honestly.
Third, small businesses need support. Government and business groups should offer CSR toolkits, grants or simplified reporting templates. This can help SMEs do their part without too much burden. Fourth, companies need to shift from short term charity to long term social impact. This includes focusing on climate change diversity, youth unemployment, and digital inclusion. Universities, NGOs and communities should be involved to guide and monitor CSE efforts.
Finally, creating CSR watchdog bodies or ethical review concils could help check how seriously companies follow through on their promises. In the future CSR in the UK is expected to become more serious standardised and results focused.
8. Conclusion
CSR in the UK has improved a lot with strong frameworks, company efforts and public awareness. Many big companies are leading the way in areas like climate action, equalityand community support. But some firms stil do too little or fake thrie efforts.
To makeCSR more powerful the UK needa clearer rules, stronger checks and more involvement from all parts of society. CSR is not about clarity— it is a smart, long term strategy for better business and a better future.
Footnotes (OSCOLA Style)
- Companies Act 2006, s 172.
- Department for Business, Energy and Industrial Strategy, ‘Reporting on non-financial information’ (2017) https://www.gov.uk/government/publications/non-financial-reporting-requirements.
- Financial Reporting Council, The UK Corporate Governance Code (2018).
- OECD, ‘Guidelines for Multinational Enterprises’ https://www.oecd.org/corporate/mne/; UN Global Compact https://www.unglobalcompact.org; Global Reporting Initiative https://www.globalreporting.org.
- Marks & Spencer, ‘Plan A: Our CSR Strategy’ https://corporate.marksandspencer.com.
- Confederation of British Industry (CBI), ‘Business Response to COVID-19’ https://www.cbi.org.uk.
- FSB, ‘Helping Small Businesses Go Green’ https://www.fsb.org.uk.
- CIPD, ‘Responsible Business and Employee Engagement’ https://www.cipd.co.uk.
- Eccles RG, Ioannou I and Serafeim G, ‘The Impact of Corporate Sustainability on Organisational Processes and Performance’ (2014) Management Science 60(11) 2835–2857.
- ACCA, ‘Tenets of Good Governance’ https://www.accaglobal.com.
- UK Competition and Markets Authority (CMA), ‘Green Claims Code’ (2021) https://greenclaims.campaign.gov.uk.
- British Chambers of Commerce, ‘CSR Guide for SMEs’ https://www.britishchambers.org.uk.
- UK Parliament, ‘Proposals for ESG Regulation in the UK’ (2023) https://www.parliament.uk.
