What is the connection between economic model of corporate social responsibility and free market?

The economic model of corporate social responsibility (CSR) posits that companies can enhance their profitability by voluntarily engaging in socially responsible practices, such as environmental sustainability and ethical labor practices. This model aligns with free market principles, as it suggests that businesses can achieve competitive advantage and long-term success by responding to consumer demand for responsible behavior. In a free market, CSR can drive innovation and efficiency, as companies that prioritize social good may attract customers and investors seeking ethical options. Ultimately, the connection lies in the belief that responsible corporate behavior can coexist with and even enhance market dynamics.