The Opportunities and Limitations of Strategic Csr

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Strategic CSR The opportunities and limitations of strategic CSR Structure 1. What is strategic CSR? 2. Opportunities of strategic CSR 3. Limitations when performing strategic CSR 4. Conclusion 5. References 1. What is strategic CSR? First of all, strategic CSR has to be differentiated from the two other types of CSR, ethical and altruistic (Lantos, 2001:2). Ethical CSR serves three fundamental parts, including legal and economic as well as social responsibilities. Companies operate in accordance with the requirements of the government, the shareholders and the society although they might not benefit from performing this type of CSR (Lantos, 2001:15). Altruistic CSR, however, deals with the humanitarian level of CSR meaning that companies do more than what is expected from them. They have the opportunity to benefit from their practices but in most cases they spend a lot more time and money in actions than they earn from them in the end (Lantos, 2001:15). In contrast, undertaking “CSR in a strategic manner” creates “social and environmental contributors […] that also enable tangible business benefits” (Heslin and Ochoa, 2008:125). This means that it covers actions which are directed to a win- win situation between business, society and environment, the so- called “triple bottom line” of Brundtland (Jürke, 2012:19). 2. Opportunities of strategic CSR According to Porter and Kramer, a company “will make the most significant impact and reap the greatest business benefits” when performing strategic CSR initiatives and practices (Porter and Kramer, 2006:87). Therefore it seems as if there are numerous opportunities and advantages a company might benefit from. One of the strongest opportunities when performing strategic CSR is to make financial profit. According to Krauthammer, CSR “makes financial sense” (2009:4) as it embodies the possibility to

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