CSR and Competitive Advantage
CSR AND COMPETITIVE ADVANTAGE
Corporate social responsibility (hereinafter CSR) has become one of the central issues on the agenda of organizations today, but is still a long way from being a centre stage on corporate strategy (Smith, 2003; Stewart, 2006). One of the key problems is the lack of understanding about the impact CSR has on competitiveness (Porter and Kramer, 2006). There are many studies trying to analyze the relationship between CSR and financial performance (Chand and Fraser, 2006; McWilliams and Siegel, 2001), proposing a business case for CSR (Cramer et al., 2006; Smith, 2003) or providing case studies on CSR practices (Gueterbok, 2004; Robertson and Nicholson, 1996). However, financial performance or smart practices don’t automatically imply long term competitiveness (Porter and Kramer, 2006; Porter and Van der Linde, 1995; Smith, 2003). The bottom line is that there seems to be a connection between CSR and competitiveness, but the nature of the relationship is unclear (Mackey et al., 2007; Van De Ven and Jeurissen, 2005).
Today, corporate social responsibility (CSR), a firm’s commitment to maximize long-term economic, societal, and environmental well-being through business practices, policies, and resources, is a strategic imperative. Spurred by the thinking of leading strategy, management, and marketing scholars (e.g., Kotler and Lee 2005, Raghubir et al. 2010, Mahoney et al. 2009, Margolis and Walsh 2003, Porter and Kramer 2006), most forward-thinking firms across the globe are approaching CSR as not merely their ethical responsibility to society and the environment, but instead as a way to achieve their strategic objectives while at the same time bettering the world (i.e., creating joint value for the firm and society). In line with this emerging perspective, more and more companies are engaging in initiatives that try to improve public health, safety, the environment or community well-being through the active participation of key
Corporate social responsibility (hereinafter CSR) has become one of the central issues on the agenda of organizations today, but is still a long way from being a centre stage on corporate strategy (Smith, 2003; Stewart, 2006). One of the key problems is the lack of understanding about the impact CSR has on competitiveness (Porter and Kramer, 2006). There are many studies trying to analyze the relationship between CSR and financial performance (Chand and Fraser, 2006; McWilliams and Siegel, 2001), proposing a business case for CSR (Cramer et al., 2006; Smith, 2003) or providing case studies on CSR practices (Gueterbok, 2004; Robertson and Nicholson, 1996). However, financial performance or smart practices don’t automatically imply long term competitiveness (Porter and Kramer, 2006; Porter and Van der Linde, 1995; Smith, 2003). The bottom line is that there seems to be a connection between CSR and competitiveness, but the nature of the relationship is unclear (Mackey et al., 2007; Van De Ven and Jeurissen, 2005).
Today, corporate social responsibility (CSR), a firm’s commitment to maximize long-term economic, societal, and environmental well-being through business practices, policies, and resources, is a strategic imperative. Spurred by the thinking of leading strategy, management, and marketing scholars (e.g., Kotler and Lee 2005, Raghubir et al. 2010, Mahoney et al. 2009, Margolis and Walsh 2003, Porter and Kramer 2006), most forward-thinking firms across the globe are approaching CSR as not merely their ethical responsibility to society and the environment, but instead as a way to achieve their strategic objectives while at the same time bettering the world (i.e., creating joint value for the firm and society). In line with this emerging perspective, more and more companies are engaging in initiatives that try to improve public health, safety, the environment or community well-being through the active participation of key