Corporate Social Responsibility: A New Source of Competitive Advantage or a Way of Life?

by

ABSTRACT

The purpose of this research will be to present literature and data for identifying corporate social responsibility as a mean of competitive advantage. This research will also construct a model of which corporate social responsibility is influenced by four major components: Accountability, Transparency, Competitiveness, and Responsibility. Government alone may not have the resources necessary to find sustainable solutions to the many dilemmas the world is currently facing, such as untreatable diseases and environmental degradation. The involvement of corporations is essential to resolve these societal problems. The purpose of this quantitative research study was to discover the degree to which corporate ability (CA) and corporate social responsibility (CSR) represent effective sources of competitive advantage from the perspectives of consumers and corporate leaders.

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

Signed __________________ Date _________________

Table of Contents

ACKNOWLEDGEMENTIII

DECLARATIONIV

TABLE OF CONTENTV

CHAPTER 1: INTRODUCTION1

Background of the Study1

Purpose of the Study1

Problem Statement2

Rationale of the Study2

Aims and Objectives3

Theoretical Framework3

Research Questions5

Ethical Consideration6

Appraisal Limitations7

CHAPTER 2: LITERATURE REVIEW8

Who Is a Stakeholder?8

Stakeholder Theory9

Corporate Social Responsibility10

Examples of CSR in Practice11

Internal dimension:13

External dimension:13

Understanding the CSR phenomenon14

Allocation of Budget for CSR16

Components of CSR17

Customer Loyalty18

Globalization and CSR18

CSR: A Source of Competitive Advantage20

CSR & Decision Making21

Corporate Citizenship23

Corporate Ability24

CSR as a Business Strategy25

Social Responsibility and Investors26

Implementing CSR26

Effects of a Good Image on Competitive Advantage29

Global Priorities in the Field of Corporate Social Responsibility for Sustainable Development30

CHAPTER 3: METHODOLOGY34

Research Design's Ability to Accomplish Its Goals34

Case Study34

Dependent and Independent Variables35

Interview Questionnaire35

Data Analysis:36

Research Philosophy36

Literature Search37

Confidentiality38

Reliability38

Validity39

Significance40

Preparing Survey Data for Investigation40

CHAPTER 4: DISCUSION AND ANALYSIS42

Results of Statistical Procedures42

Question 01: CSR and Consumer43

Question 02: CSR and Customer Satisfaction43

Question 03: The Impact of Corporate Social Responsibility44

Question 04: CSR and Customer Loyalty45

Question 05: Corporate Ability45

Question 06: CSR initiatives46

Question 07: Voluntary CSR47

Question 08: Role of Government47

Question 09: CSR and Business Association48

Question 10: CSR and relationship with stockholders49

Descriptive Analysis50

CHAPTER 5: CONCLUSION AND RECOMMENDATION51

REFERENCES54

APPENDIX57

Questionnaire57

CHAPTER 1: INTRODUCTION

Background of the Study

Corporate social responsibility (CSR) is an evolving concept that does not currently have a universally accepted definition. It frequently overlaps with similar terms, such as corporate sustainability, corporate sustainable development, and corporate citizenship. Whether or not or to what extent businesses must implement CSR has been a heated topic of discussion through the years, but was particularly vociferous during the debate about conducting business in South Africa during the apartheid era. At the time, many corporate executives maintained that their responsibility extended only to their shareholders (Hsee, 1999, pp.555).

Corporate social responsibility (CSR) constitutes an economic phenomenon of significant importance. Today, firms largely determine welfare through producing goods and services for consumers, interest for investors, income for employees, and social and environmental externalities or public ...