Instrumental PCSR: Irreconcilable Contradiction or Viable Management Approach?

Abstract

Political CSR and instrumental CSR are widely believed to be irreconcilable. This explorative study suggests that the Creating Shared Value framework opens up potential for integration of political and instrumental CSR. Based on a comparison of ontological properties of political CSR and Creating Shared Value, a shared assumption of corporate illegitimacy within both concepts is identified. Consecutively, a best-case scenario is offered that integrates multi-stakeholder initiatives into the corporate decision-making process for shared value initiatives. A discussion of this new approach and its possible less-than-best case scenarios suggests that the major limitations of the parent concepts can be mitigated, while increasing the need for a more trustful stakeholder communication and management. The concept at core stays close to political CSR, but the notion is introduced that Creating Shared Value and Corporate Political Activity can be considered hand in hand and the proceeds from profit-generating CSR activities can be funneled into costly Corporate Political Activity. While the proposed approach does dilute some notions of its parent concepts, the paper suggests to add it to a manager’s toolbox in cases of pursuit of moral legitimacy without forfeiting strategic benefits from CSR activities.

Keywords: Political CSR, multi-stakeholder initiatives, Instrumental CSR, Creating Shared Value, moral legitimacy

JEL Classification: M14, F23, F55