Abstract:
Recent economic crises coupled with corporate scandals have plunged the world into the greatest financial predicament it has faced in almost a century. Deregulation has empowered business leaders and their subsequent unethical behaviour has undermined the very foundations of the world’s financial and business infrastructure. It is perplexing that corporate social responsibility (CSR) spend is the first area of business to suffer cutbacks during challenging times – especially since it is often the lack of ethic that has led to such crises in the first place. The cosmic exploration of CSR over the past 50 years has left academics and business leaders with a lack of causal evidence as to the value of behaving in a socially responsible manner. This research tests the theory that CSR can have strategic implications and is pivotal for organisational sustainability. The research uses four constructs of corporate strategy that could be related to CSR, namely: centrality, specificity, proactivity and voluntarism. The research has found that CSR can in be aligned with corporate strategy and assist firms in reaching their long-term goals. It has also found the term “strategic CSR” to be relevant in organisations. The paper proposes a framework that organisations can use to approach CSR in a strategic manner and to create value from CSR.
