Corporate Social Responsibility refers to companies willing to modify their mind-set, acting to “do well by doing good” in order to change their impact on society. Rising awareness for social, environmental and cultural challenges have added an extra dimension to corporate competition but also a new challenge and pressure for managers to act according to this new motto.
There is rising evidence that corporate responsibility can create a significant competitive advantage for organizations.
Which advantages would a firm benefit from by taking account this value?
Incorporating this CSR approach to the firm's strategy will result in a win-win situation where all stakeholders are potentially better off and will not only focus on the return on capital.