A company that is socially responsible is one that actively contributes to the welfare of society in addition to profit driving activities. Contributions to the welfare of society can come in many forms such as supporting the arts, further education, give to social welfare agencies, supporting community-building initiatives, reducing pollution, and the other charitable causes. For instance, contributing to places like the American Heart Association makes a company socially responsible.

Businesses that adopt socially responsible directives help to allow government agencies to minimize their involvement with the corporation.