Why corporate social responsibility matters

Corporate social responsibility (CSR) is the practice of a business taking accountability for its social, environmental and ethical impact. It is not a one-off donation or a statement of values. It means building those considerations into everyday operations and decision-making.

CSR matters because it changes business outcomes. Strong CSR improves reputation and customer trust, helps attract and retain staff, meets rising investor and regulatory expectations, and supports long-term financial performance. It is also becoming a baseline expectation rather than a point of difference.

CSR is usually grouped into four areas: environmental, ethical, philanthropic and economic responsibility. Businesses that take it seriously treat these as interconnected rather than as separate boxes to tick.

If you are ready to put that responsibility into practice, you can become a corporate partner with The Fred Hollows Foundation or set up a workplace giving program for your team.

What is corporate social responsibility?

On a theoretical level, CSR is the practice of a business voluntarily taking accountability for its social, environmental and ethical impact. In practice, that looks like a commitment to fair labour practices, sustainable operations, community investment and transparent governance.

Profit is one measure of how a company is performing, and an important one. CSR is another.

True corporate social responsibility is not an annual sponsorship or a single donation. It is an ongoing commitment, reflected in strategic decisions that are embedded in how the business runs.

CSR is typically spread across four categories. Businesses that approach it seriously view these areas as interconnected rather than as separate obligations.

Environmental responsibility

Sustainable operations, emissions reduction, recycling and effective waste management.

Ethical responsibility

Fair treatment of workers and suppliers, sourcing goods through supply chains that do not take unfair advantage of people, and sound moral practice more broadly.

Philanthropic responsibility

Traditional charitable contributions, partnerships, fundraising and support for good causes.

Economic responsibility

Balancing the profit a company makes with reinvestment in the communities it affects, so that the benefits are shared.

Why is CSR important for businesses?

First and foremost, CSR matters because businesses have an ethical and moral responsibility for the impact they have on people and the environment.

But there are tangible benefits to embedding genuine CSR as well. It can directly improve:

• Reputation and public trust
• Talent attraction and retention
• Customer loyalty
• Appeal to investors
• Long-term financial performance

What are the impacts of corporate social responsibility?

Reputation

A business with real CSR builds trust across the full range of stakeholders, and establishes a public reputation as an organisation that genuinely intends to have a positive impact.

Retention

Employees, investors and suppliers want to work with a business that conducts itself ethically, and people want to feel their work has meaning.

Differentiation

Businesses that offer more than good products at fair prices, and that have a lasting positive impact, set themselves apart from competitors.

Expectation

Regulatory, market and investor expectations around CSR and Environmental, Social and Governance (ESG) frameworks continue to grow.

Why is CSR important to younger generations?

CSR is increasingly an expectation rather than a luxury. Customers, employees, investors and regulators all expect businesses to operate responsibly and transparently, and social responsibility now factors into who people choose to work for and buy from.

Deloitte's 2025 Gen Z and Millennial Survey, which covered more than 23,000 respondents across 44 countries, found that:

• 89% of Gen Z and 92% of millennials consider a sense of purpose important to their job satisfaction and wellbeing
• Around 40% have rejected a role or left an employer because its values did not align with their own
• 70% consider a company's environmental credentials important when evaluating a potential employer
• 65% of Gen Z and 63% of millennials are willing to pay more for environmentally sustainable products or services

Gen Z and millennials are projected to make up around 74% of the global workforce by 2030. As that shift continues, workplace culture and demonstrated values carry more weight in retention and satisfaction than they once did.

For most businesses, committing to CSR is no longer optional. It has become a ticket to play for organisations that want to stay competitive.

How does CSR help achieve ESG goals?

CSR and ESG are connected, but they are not identical.

What is ESG?

ESG refers to the framework used to measure and report on environmental, social and governance initiatives and practices. That is distinct from CSR, which refers to the actual methods and practice: how you are reducing environmental impact, improving working conditions, or supporting local communities.

How does CSR achieve ESG requirements?

Large businesses and organisations are increasingly responsible for preparing ESG-related reports. Organisations that set clear, measurable ESG goals can demonstrate progress against them through their record of CSR activity.

Think of it this way: CSR achieves the outcomes that ESG reporting communicates to stakeholders.

How does CSR improve workplace culture?

Strong CSR practices give employees a sense of meaning beyond their day-to-day work. Purpose lifts morale, improves engagement and increases retention, because people who feel their employer stands for something beyond profit tend to be more motivated and more likely to stay.

It is not only a culture question. Recruitment, onboarding and lost productivity all carry real costs, so improving retention and job satisfaction through CSR can make financial sense too.

CSR can be put into practice in a number of ways:

• Team fundraising events, such as Fred's Big Run
• Workplace giving programs
• Volunteering days
• Benefit sharing with affected communities

For more ideas, see 4 ways your company can help end avoidable blindness.

How does CSR increase customer engagement and trust?

People increasingly choose brands they believe act responsibly, and they often judge the quality of a product or service by the conduct of the business behind it.

Deloitte's research found that around two-thirds of Gen Z and millennial consumers are willing to pay more for environmentally sustainable products or services, and around a quarter research a company's environmental record before buying from it.

Giving back does not have to mean supporting large international causes. Partnering with a local charity to sponsor an event, or donating a percentage of sales, builds visible goodwill in your own community.

What is an example of CSR in Australia?

A clear example of CSR in Australia is The Fred Hollows Foundation's long-running partnership with Specsavers.

The two organisations have partnered since 2011, and the relationship demonstrates sustained, measurable social impact over time rather than a one-off donation. Across 15 years, Specsavers has donated more than $12.5 million to support The Foundation’s Indigenous Australia Program.

That support has helped:

• Screen more than 155,550 Aboriginal and Torres Strait Islander people
• Deliver more than 20,750 cataract surgeries and other eye treatments
• Provide more than 16,400 diabetic retinopathy treatments
• Train more than 1,000 health care workers to deliver culturally responsive care

How does it work in practice? Each year Specsavers releases a limited-edition eyewear range designed by an Aboriginal or Torres Strait Islander artist, with $25 from every pair sold going to The Foundation's Indigenous Australia Program. The 2026 range was created with Ernabella artist and Pitjantjatjara woman Atipalku Intjalki, returning the program to the APY Lands where the first collaboration began.

The partnership goes beyond funding. It also includes eye health equipment donations to support Aboriginal Health Services, and a skilled volunteering program that gives Specsavers optometrists the opportunity to provide eye care in remote and under-serviced communities through our Optometry Outreach Program.

It is a strong model of how a business can build genuine corporate social responsibility into its daily operations.

If your business is interested in a partnership of its own, you can explore corporate partnerships with The Fred Hollows Foundation.

Gabi Hollows wearing the 2021 Specsavers Limited Edition frames designed by Yuin woman and artist Rheanna Lotter, aka Ngandabaa. $25 from each pair of glasses sold goes to The Fred Hollows Foundation’s work in Australia.

Photo credit: The Fred Hollows Foundation

Frequently asked questions about CSR

Can CSR improve financial performance?

Yes, it can. Improvements in customer loyalty, employee productivity and retention, reduced regulatory risk and greater appeal to investors are all indirect ways in which CSR can support financial performance.

How much should a business donate as part of its CSR strategy?

There is no fixed amount. Consistency, transparency and commitment matter more than the figure. Choose a cause your employees and customers will connect with, and commit to practices you can sustain long term.

Are workplace giving donations tax deductible?

Workplace giving donations to a registered charity such as The Fred Hollows Foundation are often made through pre-tax payroll. This reduces an employee’s taxable income at the time of the donation and means each donated dollar stretches further, with no need to claim at tax time.

Donations of $2 or more to The Fred Hollows Foundation may be tax deductible in Australia. Always consult a registered tax agent about your own circumstances.

How does The Fred Hollows Foundation use corporate donations?

For every $1 donated to The Foundation, 75% goes directly towards eye health programs, 6% covers administration costs, and 19% is invested in fundraising so we can reach more people in future years. You can read more about where your donation goes.

How can my business start implementing CSR through The Foundation?

Choose how you want to get involved. You can read why businesses partner with The Fred Hollows Foundation, take part in a fundraising event as a work team, speak to us about becoming a corporate partner, or set up a workplace giving program to involve your employees directly.

However your business chooses to embed corporate social responsibility, supporting The Fred Hollows Foundation helps end avoidable blindness and restore sight for people who need it most. Become a corporate partner or make a donation.

Content updated: 29 July 2026