Doing well by doing good? Implementing new effective integrated CSR strategy

Abstract

Corporate Social Responsibility (CSR) increasingly receives attention from executives, business academics,
and public officials. However, whether CSR positively contributes to firm performance is inconclusive. This
paper integrates and extends the extant literature about CSR and introduces a conceptual framework and
propositions on how firms can accomplish some social goals effectively and still, meet the performance
expectations of shareholders. This paper suggests five major CSR-related strategies including the integration
of CSR activities into business operations, CSR-related innovations and first-mover advantage, CSR-related
advertising and risk management, relationships with CSR-related governmental and nongovernmental
organizations, as well as implementation of international CSR through geographical diversification. Managerial
interpretations of CSR as opportunities rather than as threats importantly facilitate the positive translation of
CSR engagement into firm performance. This selective interpretation is dependent on the discretionary slack
resources readily available to managers and the integration of CSR performance criteria into their performance
appraisals. The implementation of CSR practices are not without costs. To determine the appropriate level of
CSR engagement, firms need to take the demand and the supply of CSR-incorporated products into
consideration. Most importantly, firms need to consider the level of CSR engagement from its benefits and
costs in the same way as in all other investments with a long-term forward thinking and opportunity seeking
approach