Corporate social responsibility - CSR as value creation - business case
3 important questions on Corporate social responsibility - CSR as value creation - business case
Elaborate on the business idea of CSR and what question does arise?
The business idea of CSR is an approach in which CSR is seen as value creation. In this approach CSR is a way to improve financial performance.
The question that arises is the question regarding causality of CSR and CFP:
- Do firms who engage in CSR perform better financially;
- Or; are firms who perform financially good more likely to engage in CSR?
The question that arises is the question regarding causality of CSR and CFP:
- Do firms who engage in CSR perform better financially;
- Or; are firms who perform financially good more likely to engage in CSR?
Porter & Kramer state that societal harms cause firm costs. Therefore, it's important to contribute to society. What are the three ways in which firms can do this in line with CSV?
1. Reconceiving products & markets; produce products and operate in markets in which you meet customer needs
2. Redefining productivity in the value chain by; energy usage & logistics, resource utilization, distribution, employee productivity.
3. Building supporting clusters; clusters are institutions that strive productivity, innovation and competitiveness. It's about creating open and transparant markets.
2. Redefining productivity in the value chain by; energy usage & logistics, resource utilization, distribution, employee productivity.
3. Building supporting clusters; clusters are institutions that strive productivity, innovation and competitiveness. It's about creating open and transparant markets.
What are the benefits of CSV?
1. Popularity (due to porter effect and managerial language; view CSR as opportunity)
2. Connection of societal and business goals
3. Clear role for the government
4. Holistic framework to capture different approaches
2. Connection of societal and business goals
3. Clear role for the government
4. Holistic framework to capture different approaches
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