Corporate Social Responsibility and its Influence on Performance and Competitive Advantage

Topic

Corporate Social Responsibility and its Influence on Performance and Competitive Advantage

Instructions

Write a literature review on Corporate Social Responsibility and its Influence on Performance and Competitive Advantage.

Answer preview

Corporate social responsibility (CSR) is a business ethical requirement that obliges business organisations to focus on society and the environment as they pursue profits (Bahta et al., 2020). Many contemporary organisations invest in CSR as part of ethical compliance as well as building reputation and brand image. But does CSR contribute to performance and competitive advantage (CA)? If so how? This paper provides a review of the literature to address these questions, focusing on scholarly articles published after 2010. Thematic analysis is utilised to derive insights from thematic and empirical studies. A review of relevant literature produced three key themes. First, CSR focused on employee interests builds human capital that translates to better individual and organisational performance, as well as long-term CAs. Second, CSR promotes responsible governance which allows business leaders to generate value for multiple stakeholders.  Organisations then depend on these stakeholders for profitability and sustainability. Third, disclosure of CSR contributes to a good reputation or perception by stakeholders, serving as a long-term strategic value of an organisation.

Word count: 8171