Which term describes the voluntary participation of a business in making decisions that benefit stakeholders?

The term that describes the voluntary participation of a business in making decisions that benefit stakeholders is corporate social responsibility (CSR). CSR encompasses the initiatives and activities that a company undertakes to operate in an economically, socially, and environmentally sustainable manner. It reflects a commitment to not only fulfilling legal obligations but also actively considering the impacts of business decisions on various stakeholders, including employees, customers, communities, and the environment.

This is distinct from corporate philanthropy, which typically refers to the act of donating money or resources to charitable causes but does not necessarily encompass the broader responsibilities tied to stakeholder engagement and ethical decision-making. Sustainability practices focus specifically on environmental stewardship and resource management, while business ethics relates to the moral principles and standards that guide behavior in the business world. CSR integrates these elements into a holistic approach, ensuring that the business operates ethically and contributes positively to society while still aiming for profitability.