The Theoretical Foundations Of Csr And Corporate Citizenship

2308 Words Oct 20th, 2014 10 Pages
Corporate social responsibility has been defined, according to the European Commission, as “the responsibility of enterprises for their impacts on society. They should have in place a process to integrate social, environmental, ethical human right and consumer concerns into their business operations and core strategy in close collaboration with their stakeholders”.
With our nowadays consumption society and the huge tendency toward globalization, consumers are exposed to more and more brand and numerous of new products, and the loss of trust put into firms and brand loyalty because of controversies activities companies are responsible for, is worse than ever. Thereby, Corporate Social Responsibility (CSR) seems to be one of the key factors to success for many companies, and one of the best ways to win the consumer’s trust back.
Thus, Does implementation of CSR activities improve company profitability? Are the investments in CSR economically justified, and does it create a competitive advantage for firm’s that implement it?
In this essay, we will first discuss about the theoretical foundations of CSR and corporate citizenship, and then, in a second part, we will answer to the key question about CSR and profitability, in going through the competitive advantage and profit aspect of the issue.

I) Theoretical foundations of CSR and corporate citizenship

• Economical definition
CSR is supposed to integrate seven main aspects including: organizational governance, community…
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