Organisational Ethics and Corporate Social Responsibility in European Business: Regional Variations and Strategic Impacts on Sustainability

Background. In a time marked by globalisation, environmental challenges, and rising social expectations, European businesses face increasing pressure to align profitability with ethical responsibility and sustainable development. Purpose. This study analyses how organisational ethics and corporate social responsibility (CSR) are integrated into European business strategies and assesses their strategic impact on sustainability and competitiveness with a focus on Romania. The study analyses the conceptualisation of CSR, the evolution of sustainability reporting in Europe (2010–2025), compared regional models, and conducted a sectoral analysis that considered changes in EU legislation. Findings. The study applies a mixed-methods approach, combining quantitative analysis of CSR indicators, such as sustainability reporting rates, performance metrics, and policy data (2010-2025), with qualitative case studies and comparative assessments at the firm and sector levels. CSR has evolved from a voluntary, philanthropic concern into a strategic necessity. Across Europe, 82% of major firms now issue sustainability reports, while Romania’s reporting rate among large companies rose to 74% by 2022, signalling rapid but still incomplete convergence with Western standards and proving the persistence of significant regional differences. CSR and ethics improve innovation capacity, risk mitigation, stakeholder trust and are positively associated with long-term competitiveness. Implications. Corporate social responsibility and organisational ethics have become core drivers of long-term competitiveness in European markets. However, persistent regional disparities mean that Western Europe operates with mature and stakeholder-oriented corporate social responsibility models. In contrast, in Romania, social responsibility remains an emerging component of organisational culture, primarily driven by EU integration and regulatory pressures. For Romania, sustainable success will depend on deepening the transition from formal compliance to genuinely embedding ethical and sustainable business practices.