Corporate social responsibility today integrates social objectives into profitmaking :The Possibilities of upgrading corporate values in the case of Egypt

Author(s): Mohamed Hosny, and Abdelrahman Yasser, Economists at the Egyptian Centre of Economic Studies
Publication Number: ECES-WP221-E

Historically, Corporate social responsibility (CSR) and profit making were viewed as two diverging concepts. CSR has traditionally been a positive social activity that a corporation would invest in, separately from its main profit-generating purpose. Corporations seek profit maximization using possible legal means, while using CSR to invest in positive social programs to improve their image. More recently however, there has been an evolution in the perception of both concepts, bringing them closer together instead of having them as the complete antithesis to one another. The process of convergence began shortly prior to the outbreak of the COVID-19 pandemic, however; it led to the acceleration of the process. During the process of convergence, the values of big corporations began to shift, meaning that they are now not only accountable to generate profit for their shareholders, but also fulfill a purpose towards their respective communities, turning them into purpose driven corporations. The state of abnormality brought on by the pandemic helped show businesses how focusing on their stakeholders and not only their shareholders, would be pivotal, for their existence and continuation as a business.