Corporate Social responsibility: Competitive Advantage or Social Concern

Abstract

Corporate Social Responsibility (CSR) which was seen as corporate “Philanthropy till 1990s is considered as a buzzword today. Business bodies are seeing it as a strategy for coping up with uncertain, turbulent environment. Tata and Birla group of industries are considered pioneers in this field. Business bodies have realized that they may gain competitive advantage when society supports them strongly. Business firms have to make arduous effort to align CSR with competitive advantage, thus balancing the interests of all stakeholders. There is a need for balance companies must address the long term equitable growth issues on which prosperity and human progress depend. Today private capital accounts for 50 percent of all net long term capital flow to developing states. Along with this, pressure has been increasing on business towards social responsibility previously handled by government. Companies have to pay attention to all stakeholders if they have to achieve their business goals.

In this paper, the pillars and model of Corporate Social Responsibility has been proposed. Also a survey is conducted to know employee's perception towards CSR whether CSR is for competitive advantage or social concern or both. The responses obtained from the respondent would help to gain more insight into this topic.

Keywords: Philanthropy, Strategies, Governance, Competency, Code of conduct, Ethics