Porter, M. E., Kramer, M. R. 2006. Strategy and society: the link between corporate social responsibility and competitive advantage. Harvard business review, vol. 84 (12): 78-92.
Key issue: Traditional approaches to CSR consider business and society to be in opposition. Rather, they are in symbiosis. Understanding this, allow corporations to engage in strategic CSR that creates a competitive advantage.
In the last decades a superficial approach to CSR developed, based on glossy reports, unclear rankings and “cosmetic” PR actions.
Traditionally, four justifications for CSR were supported:
- Moral obligation
- Sustainability
- License to operate
- Reputation
All these arguments focus on a business vs. society tension. Actually, if firms don’t’ want to loose many opportunities must realise that business and society are in symbiosis.
The links between business and society must be evaluated:
- Inside-out links – impact of business on society
- Outside-in links – impact of society on business.
The competitive context can be divided into 4 areas:
- Quantity and quality of business inputs
- Rules and incentives for competition
- Local demand
- Supporting industries
Then, social issues must be analysed and prioritized:
- Generic
- Value-chain
- Social dimensions of competitive context.
The article concludes suggesting an affirmative corporate social agenda based on looking beyond expectations for opportunities to achieve social and economic benefit symultaneously. Companies must move from responsive CSR (being a good citizen and mitigating or anticipating adverse business effects) to strategic CSR (choose a unique position to gain competitive advantage). Ultimately, the debate should shift from CSR to Corporate Social Integration.
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