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What is CSR and why is it important?

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Last updated: 12 January 2026 | By: Moneypenny UK

Quick summary

CSR is how modern businesses build trust by taking responsibility for their impact on people, communities and the planet. This article explains what CSR means, how it differs from ESG, and what it can look like in practice – from reducing emissions and supporting employee wellbeing to ethical decision-making. It also shares how Moneypenny approaches CSR through practical, people-led actions, and offers a simple framework for building a CSR strategy that’s focused, measurable and honest.

CSR isn’t just a box to tick. It’s how modern businesses build trust, attract talent and prove they’re doing the right thing – for their people, their communities and the environment we all share.

Corporate Social Responsibility (CSR) is the way a business takes responsibility for its impact on society. That could mean cutting carbon emissions, supporting local communities, prioritising employee wellbeing, or making ethical decisions about suppliers and partners.

At Moneypenny, we’ve always believed in being a positive force for change and CSR is a big part of that. It’s not about perfection. It’s about making better choices, consistently, and bringing your people along with you.

What is CSR? (Corporate Social Responsibility explained)

CSR stands for Corporate Social Responsibility. It’s the actions your business takes to operate responsibly – beyond making a profit. Most CSR activity falls into three areas:

  • Environmental responsibility – reducing waste, energy use and carbon emissions
  • Social responsibility – supporting people (employees, customers, communities)
  • Ethical responsibility – doing business fairly and transparently

CSR vs ESG: What’s the difference?

People often use CSR and ESG interchangeably, but there’s a key difference

  • CSR is the culture and actions behind responsible business
  • ESG (Environmental, Social and Governance) is the framework used to measure and report that impact – often required by investors, clients and regulators.

At Moneypenny, we use ESG principles as a framework to improve our business – for the benefit of our people, our clients, the environment and the wider community.

What does CSR look like in practice? (Examples for all business sizes)

CSR doesn’t have to be complicated or expensive. The most meaningful CSR plans are the ones that align with your business values, involve your people and create real, measurable impact.

Here are a few examples of CSR in action:

🌱
Environmental CSR examples
  • Investing in renewable energy (like solar panels)
  • Switching to a green energy tariff
  • Measuring and reducing carbon emissions over time
  • Improving recycling and cutting waste across your business
  • Switching to Fairtrade or more sustainable products and suppliers
🤝
Social CSR examples
  • Supporting local charities and community initiatives
  • Running mentoring, work experience or apprenticeship programmes
  • Offering wellbeing support and inclusive benefits
  • Creating accessible workplaces where everyone can thrive
⚖️
Ethical CSR examples
  • Creating clear governance and accountability
  • Protecting customer data and maintaining compliance
  • Encouraging employee-led initiatives and open feedback
  • Making fair and inclusive decisions at every level

Why is CSR important for businesses in 2026?

Today, CSR is no longer a “nice to have”. It’s part of building a business that people trust.

Here’s why it matters.

1. Customers want proof – not promises

People are more sceptical than ever. Businesses are expected to show credible action and avoid “greenwashing”. CSR gives your brand substance, trust and long-term loyalty.

2. CSR can help you win and keep clients

Many businesses now expect their suppliers to have responsible practices – even if you’re a smaller company. Clear CSR can strengthen partnerships and unlock new opportunities.

3. Your team wants purpose

A strong CSR approach supports recruitment and retention – because people want to work somewhere they’re proud of. That’s why Moneypenny backs employee-led groups – helping our culture stay inclusive and supportive.

4. It reduces risk and future-proofs your business

Sustainability reporting, procurement checks, and stakeholder expectations are all increasing. CSR helps you stay ahead and make smarter long-term decisions.

CSR at Moneypenny: a positive force for change

At Moneypenny, CSR is part of how we do business – and it’s closely linked to our ESG approach. A few examples include:

Reducing our environmental impact

  • 200+ solar panels installed at our Wrexham HQ, helping reduce our reliance on non-renewable energy

  • Carbon emissions reporting with Planet Mark accreditation

  • A Race to Zero pledge, measuring emissions in line with the GHG Protocol

  • In 2024, we collected 31 tonnes of waste, with 67% recycled and the rest generating energy

Supporting our people

  • Inclusive workplace policies and employee-led initiatives

  • Mental health-trained Wellbeing Champions

  • Facilities designed with accessibility in mind

  • Level 2 Disability Confident employer certification

Giving back to our community

We also support our local area through charities, including our co-founder’s social mobility charity WeMindTheGap, which helps provide opportunities for young women through mentoring, coaching and work experience.

How to build a CSR strategy

Whether you’re a growing SME or a larger organisation, the best CSR strategy is one that is realistic and lived day-to-day. Here’s a straightforward approach:

1. Start with your values

What do you want your business to be known for?

2. Pick 2 – 3 priorities

Focus beats overloading yourself with good intentions.

3. Set measurable goals

Not just “be greener” but “reduce waste by X%”

4. Get your people involved

CSR works best when it has collective buy-in – and when your team feels proud to be part of it.

5. Share progress honestly

Be transparent. Show what’s working and where you’re still learning.

This is the approach we take at Moneypenny and it’s helped us build a CSR strategy that’s practical, people-led and evolving.

Want to see how we do it at Moneypenny?

Discover how we’re making a difference through our ESG report and social mobility initiatives.

Final thought

CSR is about taking responsibility and making a positive impact, one decision at a time.

At Moneypenny, we’re proud of the progress we’re making and we know the work doesn’t stop here. As our ESG journey continues, our goal stays the same: to be a home with a difference – and a positive force for change.

Frequently asked questions
  • What does CSR actually mean in practice?
    CSR is about the everyday actions a business takes to operate responsibly – from environmental choices to employee wellbeing, ethical behaviour and community impact.
  • What’s the difference between CSR and ESG?
    CSR focuses on the actions and culture behind responsible business, while ESG is the framework used to measure and report that impact.
  • Does CSR only apply to large companies?
    No. CSR is relevant for businesses of all sizes. Smaller organisations can make meaningful impact by focusing on realistic, people-led initiatives.
  • How can a business avoid greenwashing when talking about CSR?
    By being honest and evidence-led. Focus on real actions, share progress transparently, and avoid exaggerated or vague claims.
  • How does Moneypenny approach CSR?
    At Moneypenny, CSR is practical and people-led – from reducing environmental impact to supporting wellbeing, inclusion and community initiatives like WeMindTheGap.

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