The term ‘sustainable development’ was introduced first in the World Commission on Environment and Development’s 1987 Brundtland report entitled ‘Our Common Future.’ It defined sustainability as ‘development that meets the needs of the present without compromising the ability of future generations to meet their own needs.’ The World Commission on Environment and Development took four years from 1984 to 1987 to publish their report. Their aim was to direct the world towards sustainable development. By 1987 things were becoming quite evident concerning the depletion of the natural resources, degradation of the environment, loss of species and bio diversity, energy crisis, rapid urbanization, growing world population and food security and many other related issues.

Since than the concept of sustainable development has taken the world by storm with key policy makers and politicians and academicians all espousing the benefit and calling for sustainable development. 2015 saw the expiration of the Millennium Development Goals (MDGs). This was soon replaced by the Sustainable Development Goals (SDGs) launched by the United Nations in October of 2015 with the deadline of 2030 for its achievements. Unlike the MDGs aimed mostly at the developing and least developed countries, the SDGs are aimed at all the world including the developed nations. From an initial set of more than 300 goals, seventeen goals were selected.

ISO 26000 Standard defines social responsibility as “organizational responsibility for the impact of its decision and activities on the society and the environment through transparent and ethical behavior that

• contributes to sustainable development, including health and the welfare of society;
• takes into account the expectations of stakeholders;
• is in compliance with applicable law and consistent with international norms of behavior; and
• is integrated throughout the organization and practiced in its relationships.”

Society refers to the immediate society as well as the global society at large. Environment refers to ‘natural surroundings in which an organization operates, including air, water, land, natural resources, flora, fauna, people, outer space and their interrelationships.’ Impact of an organization’s decisions and activities manifests itself in the form of social and environmental issues common to a particular society or geographic region.

The following are key understandings related to social responsibility:

• Focus on societal and environmental impact: Other than economics, socially responsible behavior requires organizations to focus upon the impact of their decisions and actions concerning society and the environment.
• Engagement of stakeholders: Socially responsible behavior requires the adoption of an inclusive attitude and engagement of stakeholders. Stakeholders refers to any party who has one or more interests that can be affected by the decisions and activities of an organization.
• Varying societal expectations: The notion of what is socially and environmentally acceptable behavior varies from society to society and from culture to culture. Hence, it is important for socially responsible organizations to abide and comply by international rules, laws and regulations.
• Going beyond mere legal compliance: Socially responsible behavior requires abiding and respecting all the laws and regulations as well as complying with all legal obligations. However, organizational actions should not be limited to legal compliance alone. It should extend to ethical actions that go beyond legal requirements. 
• Extending influence beyond organizational boundaries: Socially responsible organizations have an obligation to use their ‘sphere of influence’ to positively influence and direct decisions and activities of entities that fall beyond their organizational boundaries i.e. suppliers, partners etc.Sphere of influence is defined as ‘range/extent of political, contractual, economic or other relationships through which an organization has the ability to affect the decisions or activities of individuals or organizations.’

There are seven principles of social responsibility.

1. Accountability: This principle states that an organization must be accountable for the impact of its decisions and actions on the society, environment and economy. This is particularly so in the case of negative consequences. Organizations must take action to prevent repetition of unintended and unforeseen negative consequences. Organizations are responsible to the various stakeholders.
2. Transparency: This principle states that an organization should be transparent in its decisions and activities that impact on society and the environment. This requires organizations to disclose information concerning their activities and decisions that may have economic, social, and environmental impact on various stakeholders. They should also disclose information concerning management hierarchy and structure concerning these decisions. Information should be presented in an easy to understand, factual and timely manner and should be fully accessible to relevant stakeholders.
3. Ethical Behavior: This principle states that organizations must engage in ethical behavior. They must champion the values of values of honesty, equity and integrity. Such behavior translates into concern for the people and environment and commitment to address the impact of its decisions and actions on stakeholder interests.
4. Respect for stakeholder interests: This principle states that an organization should respect, consider and respond to the interests of its stakeholders. This includes identifying relevant stakeholders, recognizing their interests and legal rights and involving and engaging them actively on decisions and actions that will impact them.
5. Respect for the rule of law: This principle states that an organization should respect the rule of law and abide by it and comply with all the necessary regulations.
6. Respect for international norms of behavior: This principle states that an organization should respect international norms of behavior, while adhering to the principle of respect for the rule of law.
7. Respect for human rights: This principle states that an organization should respect human rights and recognize both their importance and their universality.