Corporate social responsibility is the idea that firms have obligations to society beyond their financial obligations to owners or stockholder, and also beyond those prescribed by law. Such responsibility is part of external engagement, or the efforts a company makes to manage its relationship with the external world. The external engagement should be integrated into decision making at every organizational level.

The external engagement should include a wide variety of activities including philanthropy, community programs, aspects of product design, and recruiting policy. Being socially responsible fits into the Thou Shalt approach, or finding out better ways for leaders to make a positive contribution to society. Our focus is illustrative actions that leaders can take to enhance social responsibility, as well as create an organizational culture that encourages ethical behavior.