Corporate social responsibility: an avenue for sustainable benefit for society and the firm?

Abstract

PurposeThe objective of this paper is to investigate the benefits arising from various corporate social responsibility (CSR) approaches, to determine which approach generated the most sustainable mutual benefit accruing both to the focal firm, as well as to society and the firm's stakeholders.Design/methodology/approachThe ethnographic case studies are based on interviews with senior managers from six companies which are members of Business in the Community Ireland, a not‐for‐profit organization comprised of companies which are active about CSR initiatives.FindingsResults show that for the companies interviewed, CSR initiatives that are voluntary and strategic, as opposed to coerced and/or non‐strategic, generate the most sustainable mutual benefit to the firm itself and its social beneficiaries.Originality/valueThe paper presents a framework to analyze approaches to CSR, using the dimensions of strategic/non‐strategic, voluntary/coerced. The study discovers ways to reconcile the conventionally competing shareholder and stakeholder mindsets. The paper concludes that if firms pursue CSR activities in a voluntary and strategic manner they can satisfy both shareholders' and stakeholders' demands.

Revisiting the Corporate Social and Financial Performance Link: A Contingency Approach

“…However, this study shows that carefully planned and implemented CSR can create a competitive advantage for the firm, while simultaneously doing the right thing by salient stakeholders, understanding their needs, and answering them. This is consistent with an “engaged” firm (O'Higgins ) which manages simultaneously to find ways of creating benefits for itself and its stakeholders (Gyves and O'Higgins ).…”

“…The treatment of stakeholders is intertwined with strategic CSR, as well‐targeted investments in stakeholder relationships have the potential to yield economic as well as social benefits (Baron ; Burke and Logsdon ; Gyves and O'Higgins ). Broadly, stakeholder theory highlights the importance of a firm's relationships with groups and individuals, and can underpin the strategic use of contingencies.…”

Defining a Methodology for Social Audit Based on the Social Responsibility Level of Corporations

“…Their findings prove that shareholders' needs and expectations can be accomplished through a voluntary adoption of corporate social responsibility practices. While Gyves and O'Higgins (2008) argue for the voluntary side of CSR, Bj€ orn (2012) pleads against mandatory CSR disclosure, the main argument being that it will not lead to higher transparency in corporate reporting. In addition, Bj€ orn (2012) uses the integrative social contracts theory and a qualitative research perspective to demonstrate that the "comply or explain system" is not effective for the corporate business environment.…”

“…Thus, it is demonstrated that corporate social responsibility represents a must for any company that is engaged in the pursuit of profit maximization, as the latter is influenced by CSR. Gyves and O'Higgins (2008) studied the benefits generated by CSR, especially the mutual ones, for companies as well as stakeholders and society. Both the neoclassical theory and the social legitimacy theory were tested, and the employed methodology involves the interview technique.…”

Corporate Social Responsibility Practices in Listed Companies

“…More tax reduction will be obtained by using environmental friendly machinery or making charitable donations (Doukakis et al, 2005). Having environmental-friendly production can also achieve cost efficiency position (Gyves & Higgins, 2008). Thirdly, CSR has positive impact on strategic decision of the company.…”