Etsy is an online marketplace that aims to empower creative entrepreneurs through economic opportunities. It has three main CSR pillars - economic empowerment of sellers, diversity and inclusion, and reducing environmental impact. Etsy measures and reports on progress towards goals in these areas, such as becoming carbon neutral in 2019 and sourcing 100% renewable energy in 2020. The company's CEO is also vocal in supporting social justice issues like racial equality and AAPI communities.

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Etsy is a publicly traded marketplace for crafts and products made by creative
entrepreneurs. Its goal is to help the community of sellers turn ideas into profitable businesses.
As of April 2020, there were 2.7 million sellers on the Etsy platform. Its headquarters building is
in Brooklyn, NY, and recently earned a place on COTE Top Ten Awards in 2020 for its
sustainable design excellence (AIA, n.d.).
Flagship CSR Initiatives
As noted by CEO Josh Silverman in the Navigating Our World podcast by Brown
Advisory, Etsy's CSR pillars are three-fold. The company drives all business decisions around
economic empowerment (for entrepreneurs/sellers), diversity and inclusion, and its
environmental impact (McCormick, 2020). Etsy's Annual Report highlights these pillars as
Economic, Social, and Ecological Impact.
Etsy aims to empower creative entrepreneurs to build businesses that lead to economic
security, support community organizations and programs that advance racial justice, and
advocate for public policies that increase financial security and reduce burdens for creative
entrepreneurs (Etsy, 2021). Its social impact goal is to build diverse and inclusive workforces in
all departments, including board and leadership positions. It also seeks to ensure its supply chain
is diverse, equitable, and sustainable (Etsy, 2021). Finally, Etsy focuses on the ecological impact
of the organization, aiming to eliminate carbon impacts and fostering responsible use of
resources in its offices, such as renewable energy and sustainable design (Etsy, 2021). In
addition, it seeks to build brand awareness as a sustainably-minded and conscious-living
marketplace.
After announcing its new impact goals in 2017, Etsy relinquished its long-held B-
Corporation status. In a video interview with BSR in 2018, Silverman addressed questions about

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this approach. He stated, "I passionately believe we can be a great citizen and a great business at
the same time. And one does not have to come at the expense of the other" (BSR, 2018, 41:20).
He wanted the company to move forward with intention without needing a particular designation
(like B-Lab) to keep it accountable. The company's guiding principles of minimizing waste,
embracing differences, digging deeper, and leading with optimism connect with this sentiment
(Etsy, n.d.).
As Etsy's stated mission is to "Keep Commerce Human," it appears that the CSR pillars
align with its mission and vision. For example, its marketplace allows sellers to offer custom-
made products not found on other eCommerce marketplaces. And the low cost of entry (20
cents) empowers its sellers to create income opportunities doing what they love (Etsy, n.d.). In
addition, Etsy coded its platform to help buyers easily explore the one-of-a-kind items offered by
its marketplace of sellers. Finally, the platform's technology protects its buyers and sellers while
allowing for personality and human connection not found on other eCommerce sites.
Examples of Impact
Related to ecological impact, Etsy offsets 100% of the carbon impact from its sellers on
Etsy. Etsy is acutely aware of the potential impact of the millions of sellers shipping items
worldwide. Therefore, it met its goal of creating a carbon-neutral business in 2019. It invested in
over 404,000 verified emissions reductions that protect forests, sponsor wind and solar farms,
and develop greener methods of producing auto parts. Etsy's ultimate goal is to be Net Zero by
2030 (Etsy, 2021).
In addition, Etsy met its goal in 2020 to source 100% of its electricity from renewable
energy. This achievement includes its global offices, the energy used by remote employees, and
its website's computing load in data centers (Etsy, 2021). These examples alone show the impact

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on protecting the environment through areas that it has direct control, despite the challenges of
the shipments of sellers' products.
Data-Driven CSR
In the Brown Advisory podcast, Silverman stated, "What you measure you will improve,
especially if you publish it" (McCormick, 2020). Therefore, throughout its Annual Report, Etsy
publishes specific and measurable data points to determine the success of its initiatives. For
instance, in 2020, Etsy aimed to double sellers' economic impact by 2023 (from 2017 numbers).
In one year, it exceeded this goal, with sellers contributing $13 billion to the US economy (Etsy,
2021).
In its social impact section, its 2020 target was to ensure at least 50% of its suppliers
were owned by women, minorities, or veterans by 2022. The 2020 Annual Report explicitly
outlines the progress towards each target. Interestingly for this goal, it notes complications due to
the negative effect of COVID-19 on these suppliers. Because of the pandemic's impact on
achieving this goal, Etsy instead distributed $100,000 in grant funding to the suppliers,
prioritizing women-, minority-, and veteran-owned businesses. Its 2022 target is still in for when
in-person business activity resumes (Etsy, 2021). Throughout the other goals in the 2020 Annual
Report, there is a consistent focus on measurable goals and honest assessments.
Social & Political Issues
"Companies should take on an active role in public policy to address and help solve
public issues" (Lock & Seele, 2017, p. 559). Fortunately, Etsy's CEO takes a position regularly
on racial justice issues. In fact, in 2018, Silverman announced Etsy's goal of "doubling the
percentage of Black and Latinx employees in its workforce by 2023" (Wingard, 2020). Beyond
setting a company goal, in March 2021, Silverman authored a statement on Etsy's blog stating

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the company's support of the AAPI community and sharing Etsy's action plan, including
bystander training, mental health resources, and its "zero tolerance for hate" policy. In addition,
Etsy pledged $500k to AAPI organizations to help support these communities (Silverman, 2021).
In 2020, Silverman also spoke out in support of the Black Lives Matter movement, and Etsy
pledged $500k to the Equal Justice Initiative (Steiner, 2020).
Suggested CSR Strategies
Esty could try a CSR strategy involving the sellers. For example, Etsy could allow sellers
to opt-in to a specific percentage of sales donated to a particular charitable organization. If Etsy
sellers opt-in to this opportunity, Etsy can place their product pages higher in searches, thus
increasing exposure, benefiting both the charitable fund and the sellers. To further incentivize the
buy-in for this strategy, sellers could choose or vote on the charity for their contributions.
Overall, this strategy would increase the goodwill of both buyers and sellers.
Another programming option to enhance Etsy's overall pillars of CSR is to allow for
specific (and decorative) tags on seller pages/products representing options such as a carbon-
neutral shop, organic products, minority-owned businesses, etc. These tags and options can also
allow for specialized collections or dedicated pages/promotions on the Etsy marketplace.
CSR Influence on Buying Behavior
Despite having an Etsy marketplace store, this research exposed an inspiring aspect of
Etsy that I was unaware of. As a result, I am now more inclined to seek out custom products
from fellow Etsy sellers. In addition, the interviews that I watched of Josh Silverman made me
feel as though the organization authentically seeks to be a better global citizen through its efforts
while also seeking success for the company.

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References
AIA. (n.d.). Etsy Headquarters. Retrieved September 3, 2021, from
https://www.aia.org/showcases/6280254-etsy-headquarters
BSR. (2018, November 10). Josh Silverman, Chief Executive Officer, Etsy | BSR18 [Video].
YouTube. https://www.youtube.com/watch?v=hz9NT7qxbdM
Etsy. (n.d.). About. Retrieved September 3, 2021, from https://www.etsy.com/about
Etsy. (2021). 2020 Integrated Annual Report.
https://s22.q4cdn.com/941741262/files/doc_financials/2020/ar/2020-Integrated-Annual-
Report_final.pdf
Lock, I., & Seele, P. (2017). Chapter 30: Corporate Social Responsibility, Public Affairs and
Corporate Community Involvement: Torn between Instrumentalism and Deliberation. In
Corporate Social Responsibility, Public Affairs and Corporate Community Involvement:
Torn between Instrumentalism and Deliberation (pp. 550–564). SAGE Publications Ltd.
McCormick, S. (Host). (2020, April 28). The Power of Purpose (No. E2S1) [Audio podcast
episode]. In Navigating Our World. Transistor FM. https://share.transistor.fm/s/f6a2369b
Silverman, J. (2021, March 18). Etsy stands united with AAPI community and supports efforts to
#StopAsianHate. Etsy Blog. https://blog.etsy.com/news/2021/etsy-stands-united-with-
aapi-community-and-supports-efforts-to-stopasianhate/
Steiner, I. (2020, June 3). eBay and Etsy Contribute to Social Justice Organizations.
EcommerceBytes. https://www.ecommercebytes.com/2020/06/02/ebay-and-etsy-
contribute-to-social-justice-organizations/

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Wingard, J. (2020, July 13). 10 CEOs Who Are Maximizing ROI AND Standing Up For Black
Lives. Forbes. https://www.forbes.com/sites/jasonwingard/2020/06/18/10-ceos-who-are-
maximizing-roi-and-standing-up-for-black-lives/