CSR Practices and Competitive Advantages: A Descriptive Study

Posted: 28 Feb 2015

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Date Written: January 20, 2015

Abstract

CSR is the managerial compulsion to defend and enhance both the welfare of society as a whole and the interests of the company. So, this study is an examination of the competitive advantages of CSR practice. This study is based on two theories; stakeholder's theory, which states that companies have essential groups that need to care of and the iron law of CSR, which states that companies that become failure to utilize their power responsibly will lose it in the long run. Reviewing prior studies it was found that a number of benefits proliferate to companies that practise CSR; numerous advantages were recognized. Among these others consist of: improved brand and reputation, decline in operation costs, attracting new customers, balances power with responsibility, discourages government regulation, improves a company's image, promote profits, superior relations with the investment groups and easier access to capital, improved employee relations, efficiency and innovation and stronger relations with society through stakeholder involvement. This paper concludes that there is a greater chance to be benefited initiating CSR actions. Thus, it suggests that companies should try to provide due attention to CSR and this practice needs to consider as a continuous process.

Keywords: CSR, Competitive Advantages, Brand Image, Social Welfare

Suggested Citation

Siddique, Md. Nur-E-Alam, CSR Practices and Competitive Advantages: A Descriptive Study (January 20, 2015). American Journal of Trade and Policy, Volume 2, Number 1/2015 (Issue 4). Available at SSRN: https://ssrn.com/abstract=2571282

Md. Nur-E-Alam Siddique (Contact Author)

ASA University Bangladesh (ASAUB) ( email )

Shyamoli
Dhaka
Bangladesh
008801712441243 (Phone)

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