Draw out a clear distinction between shareholder centric CSR and stakeholder centric CSR

Shareholder-centric Corporate Social Responsibility (CSR) primarily focuses on maximizing returns for shareholders.

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In this approach, the company’s primary responsibility is seen as generating profits and shareholder value. CSR initiatives are often viewed as a means to enhance the company’s reputation and bottom line, aligning with the financial interests of shareholders.

In contrast, stakeholder-centric CSR broadens the focus to include various stakeholders beyond just shareholders. It considers the interests of employees, customers, communities, and other entities affected by or affecting the company’s operations. The goal is to balance the interests of all stakeholders and ensure the company operates in a socially responsible and sustainable manner, not solely driven by financial outcomes.

While shareholder-centric CSR emphasizes profitability and shareholder value, stakeholder-centric CSR adopts a more inclusive and holistic approach, recognizing the interconnectedness of a business with its broader environment.