mitigating harm from value chain activities and strategic CSR when value-chain activities are transformed to benefit society while reinforcing strategy. Social dimensions of competitive context are strategic and constitute the factors that significantly affect the underlying drivers of competitiveness in those places where the company operates. Competitive context can be divided into the four areas: quantity and quality of business inputs such as human resources, the rules and incentives that govern competition such as international property rights, the size and sophistication of local demand and last the availability of supporting industries such as service providers.
5.2.2 Value adding dimensions of CSR strategy
Burke & Logsdon224 is strategic or not:
provide the following five dimensions for evaluating whether a company’s CSR
1. Centrality - closeness of fit between a CSR programme and a firm’s mission and objectives. This implies that traditional broad-based corporate philanthropy programmes will have low centrality.
2. Specificity - firm’s ability to capture or internalize the benefits of a CSR programme, rather than simply creating collective goods which can be shared by others in the industry, community or society at large.
3. Proactivity - degree to which behavior is planned in anticipation of emerging economic, technological, social or political trends and in the absence of crisis situations.
4. Voluntarism - the scope of discretionary decision-making by the firm and the absence of externally imposed compliance requirements.
5. Visibility - denotes both the observeability of a business activity and the firm’s ability to gain recognition from internal and external stakeholders.
5.2.3 Strategic options According to Galbreath225, CSR can be conceptualized into four strategic options. All CSR strategies
will not necessarily fit into one specific option; however the framework provides a good general guide. In addition, it is pointed out that CSR strategies are dynamic and can change over time.226
CSR strategic option 1: Shareholder strategy In the shareholder strategy, CSR is a component of an overall profit motive and is focused solely on
maximizing shareholder returns. It is best aligned with the economist Milton Friedman’s view on CSR that a business, which fulfills its profit maximizing obligations, not only secures its own survival but also contributes to the overall wealth and prosperity of society. Thus, shareholder funds that are not used to generate profits imply a misuse of funds.
CSR strategic option 2: Altruistic strategy In the altruistic strategy, the interwoven relationship between the firms and its community is
acknowledged and understood. The firm recognizes the need to give something back in the form of philanthropy in order to make a positive contribution to the community. Therefore funds should be channeled into various social, educational, recreational and cultural enterprises. In general, this
Burke, L. & Logsdon, J. (1996).
Galbreath, J. ( 2006).
Galbreath, J. ( 2006).