Notes

After considering both the pros and cons of CSR, most businesses and managers
today embrace the idea. In recent years, the “business case” for corporate social
responsibility has been unfolding. The business case reflects why businesspeople
believe that CSR brings distinct benefits or advantages to business organizations
and the business community. In this argument, CSR directly benefits the “bottom
line.” Michael Porter, the astute business guru and perhaps the most listened to
and respected consultant today in upper-level management circles and boardrooms, has pointed out how corporate and social initiatives are intertwined.
According to Porter: “Today’s companies ought to invest in corporate social
responsibility as part of their business strategy to become more competitive.” In a
competitive context, “the company’s social initiatives—or its philanthropy—can
have great impact. Not only for the company but also for the local society.”40
In his book The Civil Corporation, Simon Zadek has identified four ways in
which firms respond to CSR pressures, and he holds that these form a composite
business case for CSR. His four approaches are as follows:41
• Defensive approach. This is an approach designed to alleviate pain. Companies
will do what they have to do to avoid pressure that makes them incur costs.
• Cost–benefit approach. This traditional approach holds that firms will undertake
those activities if they can identify direct benefits that exceeds costs.
• Strategic approach. In this approach, firms will recognize the changing environment and engage with CSR as part of a deliberate emergent strategy.
• Innovation and learning approach. In this approach, an active engagement with
CSR provides new opportunities to understand the marketplace and enhances
organizational learning, which leads to competitive advantage.