The Shift Of Corporate Thinking : Roots And Development Of Shared Value Perspective

1233 WordsJun 23, 20165 Pages
3.1 The shifts in corporate thinking: roots and development of shared value perspective Whilst philanthropy initiatives have existed since the Eightieth century, its spread and consolidation as a corporate practice gained relevance after the Great Depression and the World War II (Hall, 2006). The distinctive feature of philanthropy is its emphasis in charity and the underlying idea that social and environmental problems are not a direct responsibility of firms, but of the state and public sector (Kramer, 2011: 3). The classic idea of Friedman according to which the social responsibility of business is limited to increases profits, creates jobs and expand operations (1970: 1), has guided for many years the social corporate thinking.…show more content…
Corporate Social Responsibility (CSR) emerged as a response to this new contexts and the necessity of companies to address effectively social pressures and prevent negative externalities, following a risk management perspective (Kramer and Kania 2006: 23-24; Carroll and Shabana 2010: 87-88). The so-called “license to operate”, both in social and governmental aspects, became the underlying motivation of CSR programmes. Insofar the social and economic contexts are understood as constraints, corporate social programmes were initially conceived in defensive terms to solve specific problems. For Kramer and Porter, CSR approaches, to a large extent, are superficial and uncoordinated measures focused in protect the reputation of the firm and its public relations (2006: 81). However, recent development within CSR framework have incorporated a broader scope towards sustainability and corporate citizenship ideas, under which companies are conceived as part of a wider network of actors, with convergent interests around social, economic and environmental goals (See Elkinton, 2006; Matten et al., 2003; Van Marrewijk, 2003). Since 2000s, however, the corporate thinking started to pay more attention to what have been called the competitive advantage and its relationship with social and environmental contexts. The two ideas have converged in what has been called “competitive contexts” in which firms operate (Porter and Kramer, 2006: 84), and
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