Business firms in today's world have to tread a very careful path. The primary objective of a business has always been to make the most profit for its shareholders; but now they are also expected by society to fulfill other responsibilities.
Corporate social responsibility consists of a broad spectrum of activities that businesses must do for their primary and secondary stakeholders in addition to their owners. Some of these include taking care of employees, customers, the environment, etc.
As businesses have grown large they have come to acquire a lot of power and resources which various sections of the society expect them to use for societal benefit even if it is not directly related to earning profits.
Maintaining a high standard of ethics is just one of the aspects of the social responsibilities of businesses. This includes strictly following rules and regulations, creating policies that would be able to serve the task of benefiting the society in a better way and desisting from trying to find loopholes and acting a morally unethical manner.
Corporate firms today have also realized the importance of pursuing activities that fall in the realm of corporate social responsibility and how this ultimately benefits the companies themselves in the long run.