**2. Corporate social responsibility**

A heated debate has erupted among academics, consultants, and corporate executives, yielding numerous definitions of a more humane, ethical, and transparent way of doing business. In addition, customers and workers are increasingly demanding that the organizations they support make a major good influence on the world around them. Unsurprisingly, CSR quickly becomes a key component of a company's

#### *CSR and Female Directors: A Review and Future Research Agenda DOI: http://dx.doi.org/10.5772/intechopen.105112*

standard operating procedure, with nearly 90% of S&P 500 companies publishing an annual sustainability report as a part of their CSR strategies.

The United Nations Industrial Development Organization defines CSR as a business management concept whereby companies integrate social and environmental concerns in their operations and interactions with their stakeholders. CSR is commonly seen as a technique for a corporation to achieve a balance between economic, social, and environmental factors while meeting the expectations of various stakeholders. It is a form of self-regulation that reflects companies' accountability and commitment in contributing to the well-being of communities and society through various social, environmental, and corporate governance measures. Local governments and some non-governmental organizations (NGOs) believe that public-private partnerships can revitalize neighborhoods. Various management disciplines, such as quality management, marketing, communication, finance, HRM, and reporting, have also recognized the value of CSR. Examples of CSR initiatives can range from donation efforts and involvement in the local community to diversity, inclusion, and transparency. While, CSD is aimed for both internal and external stakeholders who are informed about the company's economic, environmental, and social actions [8].

Though CSR activities could incur as company's expense, it could be a route for improving companies' reputation, risk management, cost savings, access to financing, valuable resource, human resource management, and innovation capability (for review paper see [12–14]). Firms may also gain the long-term trust of employees, consumers, and society by recognizing social responsibility, which is the foundation for sustainable business strategies. Furthermore, in developed countries, CSR activities are regarded as a duty that companies are compelled to carry out in order to gain the confidence of capital markets and be included in a sustainable market index, such as the Dow Jones Sustainability (DJS) Index, the FTSE4 Good Index, or the Morgan Stanley Capital International ESG indices. At the same time, some companies choose to go beyond the legal requirements and proactively addressing CSR in their business models.

CSR practices and CSD not only contribute toward sustainability development but also help firms gain trust of stakeholders, including investors and community. More importantly, it increases stakeholder awareness of the company's CSR operations and demonstrates their commitment to CSR. Previous research has demonstrated that firms may earn legitimacy by sharing verifiable social and environmental information [15], which they can then utilize as a strategy to adapt to social expectations [16]. Furthermore, CSD may provide positive signals to stakeholders that the activities of firms are appropriate and desirable [17].

From above, it is clear that benefits of CSR may not only satisfy their social and environmental commitments, but also get advantages for themselves. Furthermore, organizations may recognize their social and environmental influence on society by making decisions and initiating activities that embrace such a larger responsibility. Nevertheless, the advantages of CSR are not immediately quantified in dollars and are not always seen in the short term. As a result, it is doubtful that CSR concerns will be given a significant priority at the management level.
