The Business Case for Corporate Social Responsibility

Abstract

The purpose of this article is to provide a general summary of the key value propositions evident in the research on the business case for corporate social responsibility (CSR), described as four general ‘types’ of the business case, or four modes of value creation. It then presents a critique of these approaches (including identifying some problems inherent in the construct of CSR itself) and offers some principles for constructing a ‘better’ business case. Its intent is not to conduct a thorough review of studies analyzing the relationship between CSR and financial performance, as that has been well done elsewhere. Rather it seeks to unearth assumptions underlying dominant approaches in an effort to build a more robust business case for CSR that can move beyond existing limitations.

Motivations for providing CSR-mediated initiatives in mining communities of Ghana: a multiple-case study

“…Friedman, 1970;Lantos, 2001), there are many drivers of CSR (Muthuri, 2007), even if most of these are instrumental and represent the business case for CSR (WBCSD, 2002). According to Kurucz et al (2008), these constitute a proposition for value creation in the general areas of cost and risk reduction, profit maximisation and competitive advantage, reputation and legitimacy, and synergistic value creation. This will typically rest on one or a combination of the following: human resources management, brand differentiation, license to operate and diverting attention from corporate complicities in unethical behaviours (WBCSD, 2002).…”

CSR and indirect impacts of core business products/services of financial services institutions

“…For example, when an organisation focuses its responsibility on "costs and risk reduction, competitive advantage, reputation and legitimacy, and synergistic value creation" [Kurucz et al, (2008), p.85], then only the economic responsibility is considered. Such an orientation is considered as business-case CSR as there is a lesser concern for social and environmental impacts as a result of the organisation's activities.…”

Alinhamento Estratégico Da Responsabilidade Social Corporativa: Um Estudo De Caso No Setor Bancário Brasileiro

“…Por um lado, alguns autores defendem que a adoção de práticas socialmente responsáveis melhora o desempenho financeiro da empresa SIEGEL, 2011), pois trazem benefícios como redução riscos e passivos socioambientais (MARCONDES;BACARJI, 2010), licença social para operar (KURUCZ, 2008) e bom clima organizacional (FOMBRUN; GARDBERG; BARNETT, 2000;BRANCO;RODRIGUES, 2006). Por outro lado, há a visão de que essas práticas geram custos que as empresas nunca vão recuperar (FRIEDMAN, 1970;RUSSO;FOUTS, 1997;KARNANI, 2011).…”