ipl-logo

Csr Competitive Advantage

906 Words4 Pages

4.3 Strategy and Society, The Link between Competitive Advantage and Corporate Social Responsibility (Porter & Kramer, 2006) This study explains the relationship between the success of the business and its addressed social values, in term of Corporate Social Responsibility (CSR). Furthermore, it also suggests the way to manage it. 4.3.1 Four Prevailing Justifications for CSR There are four outstanding justifications to support that CSR should be taken into consideration. These four arguments are moral obligations, reputation, license to operate, and sustainability (Porter & Kramer, 2006). Firstly, moral obligations are imbued into the CSR field, and they are accounted as easy to follow and to refer to the organisations, for example, filing …show more content…

Each company should select issues, which meet its specific business goals. When CSR policies are implemented, the firm must consider to the reason for the CSR implementation, as well as, the opportunity to convey the shared value. Generic social issues might be an important aspect to society which are not affected by either the company’s operations or its long-term competitiveness. However, value chain social impacts are influenced by the company’s activities in the standard procedures of the business. While social dimensions of competitive context are regarded as components in the external environment that influence on the company’s concealed competitiveness; for example, the company’s breakthrough innovative product devoted for the friendly environment can help it attain the competitive edge, which is difficult for others to imitate (Porter & Kramer, …show more content…

This is a way to strengthen the corporate strategy by integrating the social conditions. The best way to be the good corporate citizenship is to specify clear and measurable goals, and to track their results over time. However, the company’s strategy should go beyond than just being the good corporate citizenship – this is regarded as strategic CSR implementation. Strategic CSR implementation provides the firm a unique position and a tandem compound that are involved in both “inside-out” and “outside-in” dimensions (Porter & Kramer, 2006). It is also highly important to integrate inside-out and outside-in practices. The practices help the organisation develop the value chain innovations and turn the social restrictions to be its competitive tools for enhancing both social and economic values. Therefore, it is recommended for the company to consider and integrate inside-out and outside-in perspectives into their strategic CSR implementation (Porter & Kramer, 2006). The last step is creating a social dimension to the value proposition. It is very important to the firm’s strategy to be distinct, in term of value proposition, so that it can propose the unique positioning to meet and match with its target consumers. Additionally, it is obviously clear that the most effective CSR strategy appears when the social dimension is added to the company’s core values (Porter & Kramer,

Show More
Related

  • Sephora Ulta And Nordstrom Corporate Social Responsibility

    591 Words  | 3 Pages

    Creating a strong business and building a better world are not conflicting goals they are both essential ingredients for long-term success - Bill Ford. In recent years, customers and employees have demanded corporate social responsibility (CSR) ethics, inclusion and diversity, reflecting that businesses should do more than meet the basic requirements for ethical corporate activities. Modern businesses are increasingly employing these concepts to encourage change for good and make a significant contribution to the world as they begin to acknowledge their environmental and social impact.

    Read More

  • Wfed Thematic Analysis Paper

    4345 Words  | 18 Pages

    On the other hand, research by McWilliams, Van Fleet, & Corey (2002) supports the idea that firms can use CSR and political influence to affect regulations themselves, such as by influencing intellectual property regulation to perhaps lower labor costs by preventing foreign competitors from using their own versions of an organization?s protected technology. The Oxford Handbook of Corporate Social Responsibility (2008) represents CSR behaviors through the categories of philanthropic economic activity, good corporate governing, implementation of corporate sustainability practices focusing on environmentalism, and a variety of other actions involving social conscientiousness and participation in organizational culture and activity. Additionally, questions arise not only out of the nature of the duties or deontological concerns of corporations, as emphasized in the previous point, but also based on discussion of what motivates participation in CSR: executive leadership, organizational fiscal outcomes, or an organizational or individual culture of altruism (Orlitzky, Siegel, & Waldman, 2011). Centering the issues of CSR around the perspective of stakeholder management (Freeman, 1984) enables corporate firms to take a vision of the firm?s performance in which it is embedded within the larger social and environmental contexts. This has the advantage of aligning with consequentialist outlooks which, as Trevino and Nelson (2014) note, is by far the most commonly cited form of ethical decision-making by managers, and in undermining the ethical-dilemmas which employees often face in choosing between the profits of the organization which employs them and the consequences of those in society outside of the organization by leading

    Read More

  • The Pros And Cons Of Competitive Advantage

    818 Words  | 4 Pages

    Competitive advantage is a term used in the business warzone between commonly large companies that compete to obtain the highest costumer population for their business fields. Competitive advantage is literally an advantage that a company or an organization possesses which enables it to shine brighter than the other competitors in the competition; it is what makes your business unique in comparison to the others. The question now is how? How can you acquire a competitive advantage in the global market? To answer this question, you must first be familiar with three major determinants of acquiring competitive advantage: what to produce, for whom, and with whom you are competing.

    Read More

  • Razor Competitive Advantage

    2701 Words  | 11 Pages

    Introduction Innovation is necessary for every business in order to grow and keep its position in the competitive market. To expand its business, Paramount Health and Beauty Company are preparing to launch strategy for its new technologically advanced vibrating razor. The innovative non disposable razor called Clean Edge that provides superior performance by stimulating the hair follicles to lift the hair from the skin and allowing for best shave. The first section of this report discusses changes occurring in non disposable razor category, Competitive Position along with market segmented and the strategic life cycle challenges based on the growth of the company. It will also discuss critically whether the consumer requires another razor or

    Read More

  • Volkswagen's Corporate Social Responsibility

    1858 Words  | 8 Pages

    It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which states that a firm can never exist In a vacuum (Khalidah et. al.).

    Read More

  • Why Is It Important To Be Considered In A Global Environment

    833 Words  | 4 Pages

    An ethical and socially responsible perspective involve the consideration of morality, rewards, and responsibilities, attitudes toward work and attitudes towards people living and working around us. Every company exists within the larger environment. The extent to which the company interacts with the surrounding environment is considered its social responsibility. This includes a responsibility to society at large examples charity, addressing public, health issues, donation, protecting the environment. How is competitive advantage built and maintain under

    Read More

  • Data And Analysis Paper

    860 Words  | 4 Pages

    Companies have begun embracing CSR, not only to differentiate themselves from competition, but to develop and enhance customer relationships and improve business reputation (figure 3). Craig and Marc Kielburger state that “shoppers are now demanding more from their brands, it’s no longer enough to just have the best product. To be successful today, companies must also give back.” In 2011, Business Ethics magazine reported that companies that have embraced CSR have higher sales and profits than companies that haven’t, hence CSR is used as a strategy for profit maximization. In the annual global CEO survey conducted by PwC, 64% of the 1409 CEOs from 83 countries surveyed, said that “corporate social responsibility (CSR) is core to their business rather than being a stand-alone program.”

    Read More

  • Pros And Cons Of Coffee Industry

    911 Words  | 4 Pages

    On the environmental side, coffee farmers were encouraged by foreign aid to make their lands “more modern’’ and consequently had stripped shade trees, started using harmful chemical, pesticides, fertilizers. These practices brought problems like water contamination and deforestation. From an economic point of view, laborers and coffee farmers rarely make more than $3 a day and work in very hard conditions especially during the harvest season. In the middle of the 90’s several coffee industry players, activists and customers had underestimated the role coffee plays in environmental and economic status of developing countries that produce it and expressed a desire to make a change. The recurrent oversupply of coffee meant coffee laborers and

    Read More

  • Corporate Social Responsibility: Profit-Oriented Or Socially Responsible?

    3408 Words  | 14 Pages

    Involved in CSR activities are proven to create good image and reputation for a company. In the long run, it helps a company to increase shareholders’ value and achieve sustainable business

    Read More

  • Current Event Critical Analysis

    991 Words  | 4 Pages

    Social sustainability aims to improve the daily life for the greatest number of people, much like Dove with their “Real Beauty” campaign. A corporation’s core values is also a relevant topic to sustainability: “values are ideas that a person or a group believes to be right or wrong, good or bad, attractive or undesirable” (McKee, 30). Companies that decide to act responsibly are also more likely to attract consumers since they know the business is doing something positive for the greater good. These values stem into “a company’s beliefs, values, and practices about how employees, customers, and the environment are

    Read More

  • Volkswagen Code Of Ethics Analysis

    1155 Words  | 5 Pages

    Davis (as cited by Khalidah, Zulkufly, & Lau, 2014) defined Corporate Social Responsibility (CSR) as “… the firm’s consideration of, and response to, issues beyond the narrow economic, technical, and legal requirements of the firm. It is the firm’s obligation to evaluate in its decision-making processes the effects of its decisions on the external social system in a manner that will accomplish social benefits along with the traditional economic gains, which the firm seeks. It means that social responsibility begins where the law ends. A firm is not being socially responsible if it merely complies with the minimum requirements of the law, because this is what any good citizen would do.” A firm will not survive without the support of both the stakeholders and shareholders, thus the CSR proposes the indication which stats that a firm can never exist In a vacuum (Khalidah et.

    Read More

  • Ethical Necessity Or Imperative Essay

    825 Words  | 4 Pages

    (Daft, 157). One interesting study reveals that companies that have more CSR commitments score higher in the stock market than those with little to none CSR projects (157). Also, research shows that customers and employees care about ethics (Velasquez, 4).” Velasquez believes that “ethical behavior is the best long-term business strategy for a company” (Ethics, 4) mainly because “it creates the kind of goodwill and reputation that expand a company’s opportunities for profit (6).” Higher ethical commitments from businesses will likely lead to enhance image and reputation, which can lead to greater satisfaction from stakeholders, and eventually will translate to financial benefits.

    Read More

  • Examples Of Ethical Responsibility

    902 Words  | 4 Pages

    CSR plays an important role in world of business as it implies to do well by doing good. A large number of multinational units have set global standards, in which same technology is used throughout the world. This helps to create a strategic advantage as well as also serves to elevate the technological expectations. The CSR initiatives not only help in creating awareness and education, but it also helps in ensuring the growth of middle class people. Some of the companies make use of it by expansion of their consumer base in rural as well as urban areas.

    Read More

  • Legitimacy Theory Essay

    974 Words  | 4 Pages

    The legitimacy theory is mostly suitable for corporations working in developed countries, while on the other hand, the stakeholder theory seems to be most suitable for multinational corporations working in developing countries. As per social contract theory, CSR exists due to an implicit social contract between business and society and this contract implies some indirect obligations of business towards society. According to the societal approach, firms are responsible to society as a whole, of which they are an integral part. Social contact theory is mostly suitable for organizations working in developed economy/countries. The signaling theory has been used to explain voluntary disclosure in corporate reporting.

    Read More

  • Ethics Of Business Ethics

    979 Words  | 4 Pages

    CSR is closely linked to "sustainable development", in which there is an argument that a company in carrying out its activities must base their decision not solely based on financial factors such as profits or dividends but also must be based on social and environmental consequences for now and for the long term. Business ethics and corporate social responsibility are two issues that are often overlooked by business people because it is in this article will discuss how business ethics relationship with corporate social

    Read More

More about Csr Competitive Advantage

Open Document