CSR Practices and Competitive Advantages: A Descriptive Study

Md. Nur-E-Alam Siddique


CSR is the managerial compulsion to defend and enhance both the welfare of society as a whole and the interests of the company. So, this study is an examination of the competitive advantages of CSR practice. This study is based on two theories; stakeholder’s theory, which states that companies have essential groups that need to care of and the iron law of CSR, which states that companies that become failure to utilize their power responsibly will lose it in the long run. Reviewing prior studies it was found that a number of benefits proliferate to companies that practise CSR; numerous advantages were recognized. Among these others consist of: improved brand and reputation, decline in operation costs, attracting new customers, balances power with responsibility, discourages government regulation, improves a company’s image, promote profits, superior relations with the investment groups and easier access to capital, improved employee relations, efficiency and innovation and stronger relations with society through stakeholder involvement. This paper concludes that there is a greater chance to be benefitted initiating CSR actions. Thus, it suggests that companies should try to provide due attention to CSR and this practice needs to consider as a continuous process.



CSR, Competitive Advantages, Brand Image, Social Welfare


Ahmed AA and Ahmad M. 2009. An Empirical Analysis of Performance Measurement of the Disclosure in Financial Reporting: A Study of Banking Sector in Bangladesh COMSATS Institute if Information Technology 2nd COMSATS International Business Research Conference. Lahore, Pakistan: CIIT.

Ahmed AA, Dey MM, Akhter W and Raza A. 2011. Timeliness attributes and the extent of accounting disclosure: a study of banking companies in Bangladesh Interdisciplinary Journal of Contemporary Research in Business, 3, 915-925.

Ahmed AA. In:Business Management (https://www.lap-publishing.com/), ed. 2012. Compliance of Financial Disclosure: Long Walk to Accounting Research 1 Germany: LAP LAMBERT Academic Publishing.

Ahmed, A. A. A., & Neogy, T. K. Merger and Acquisitions (M&A) Goodwill Accounting: Principles and Practice The Bangladesh Accountant, ICAB, Vol 65 No. 36, Oct-Dec 2009

Akterujjaman SM, Biswas MR, Siddique MN, “Performance of Grameenphone and Robi in Telecom. Sector of Bangladesh: A Comparative Study” ASA University Review, Centre for Socio-Economic Research, ASAUB, Volume 5, No. 2 (9th Issue), January-June 2011, pp. 159-176.

Alam, N., & Rubel, A. (2014). Impacts of Corporate Social Responsibility on Customer Satisfaction in Telecom Industry of Bangladesh. ABC Journal Of Advanced Research, 3(2), 26-37. Retrieved from http://journals.abc.us.org/index.php/abcjar/article/view/6.3

Ali, I., Rehman, K.U., Yilmaz, A.K., Nazir, S and Ali, J.F. (2010). Effects of corporate social responsibility on consumer retention in cellular industry of Pakistan, African Journal of Business Management. Vol. 4(4), Pp. 475-485.

Asada, D. (2010). Corporate social responsibility of companies and sustainable development in Nigeria: Recent trends and lessons from other African Countries. http://dspace.unijos.edu.ng/bitstream/10485/1449/1/Corporate%20Social%20Responsibil ity%20of%20Companies.pdf. Accessed 29/5/2013.

Asemah, E.S and Asogwa, C.E (2012). Public relations strategies and the administration of Jos North Local Government Area, Plateau State, Nigeria. Indian Journal of Arts, Sciences and Commerce. Vol. 3. Issue 4 (1), Pp. 77-89.

Asemah, E.S., Edegoh, L.O.N and Anatsui, C. (2012). Corporate social responsibility and community relations as critical factors in conflict management. Maiduguri Journal of Arts and Social Sciences. Vol. 10 (1), Pp. 47-55

Asemah, E.S., Ekhareafo, D.O., Edegoh, L.O.N and Ogwo, C.A. (2013). Dimensions of community and media relations. Jos: University Press.

Asemah, E.S., Okpanachi, R.A and Olumuji, E. O. (2013b). Communicating corporate social responsibility performance of organisations: A key to winning stakeholders' goodwill. International Journal of Arts and Humanities. Vol. 2 (3).

Asemah, E.S., Okpanachi, R.A and Olumuji, E.O. (2013a). Universities and corporate social responsibility performance: An implosion of the reality. African Research Review. Vol. 7(4).

Backhaus, K. B., Stone, B. A. and Heiner, K. (2002). Exploring the relationship between corporate social responsibility performance and employer attractiveness. Business and Society.Vol. 41, Pp. 292-318.

Ballou, B., Godwin, N. H. and Shortridge, R. T. (2003). Firm value and employee attitudes on workplace quality. Accounting Horizons. Vol. 17 (4), Pp. 329-341.

Barone, M., Norman, A and Miyazaki, A. (2007). Consumer response to retailer use of cause- related marketing: Is more fit better? Journal of Retailing, 83(4), Pp. 437‐445.

Bhattacharya, C. B., Korschun, D. and Sen, S. (2009). Strengthening stakeholder‐company relationships through mutually beneficial corporate social responsibility initiatives. Journal of Business Ethics. Vol. 85(2), Pp. 257‐272.

Branco, M. C. and Rodrigues, L. L. (2006). Corporate social responsibility and resource-based perspectives. Journal of Business Ethics, Vol. 69, Pp. 111-132.

Cardan, S. D and Darragh, O. (2004). A halo for angel investors. The McKinsey Quarterly. Vol. 1, Pp. 6-8. Chahal, H and Sharma, R. D. (2006). Implications of corporate social responsibility on marketing performance: A conceptual framework. Journal of Services Research. Vol. 6, (1), Pp. 205-216. Cone, Inc. (2010). Cone’s cause evolution study.

Crowther, D and Aras, G. (2008). Corporate social responsibility. Copenhagen: Ventus Publishing.

Davis, K. 1973. The case for and against business assumptions of social responsibilities. Academy of Management Journal. Vol. 16, Pp. 312-317.

De Bakker, F and Nijhof, A. (2002). Responsible chain management: A capability assessment framework. Business Strategy and the Environment. Vol. 11(1), Pp. 63-75.

Deegan, C. (2002). The legitimising effect of social and environmental disclosures: A theoretical foundation. Account Audit Accountability Journal. Vol. 15(3), Pp. 282-311.

Dodd, M.D and Supa, D.W. (2011). Understanding the effect of corporate social responsibility on purchase intention. Public Relations Journal Vol. 5 (3), Pp. 1-19

Du, S., Bhattacharya, C. B. and Sen, S. (2010). Maximising business returns to corporate social responsibility(CSR): The role of social responsibility communication. International Journal of Management Reviews. Vol. 12(1), Pp. 8‐19.

Fombrun, C. (2005). Building corporate reputation through corporate social responsibility initiatives: Evolving standards. Corporate Reputation Review. Vol. 8(1), Pp. 7-11.

Fonceca, C and Jebaseelan, A.U.S. (2012). Critical appraisal of corporate social responsibility activities in India. IOSR Journal of Humanities and Social Sciences. Vol. 4 (2), PP 45-48

Frank, R. H. (1996). Can socially responsible firms survive in a competitive environment? In D. M. Messick and A. E. Tenbrunsel (Eds.), Codes of Conduct: Behavioural Research into Business Ethics. New York: Russell Sage Foundation, Pp. 86-103.

Frederick, W.C. (1998). Business and society, corporate strategy, public policy, ethics. New York: McGraw Hill Publishing Company.

Freeman, R. E., Harrison, J. S and Wicks, A. C. (2007). Managing for stakeholder’s survival, reputation and success. New Haven: Yale University Press.

Fulmer, I., Gerhart, B and Scott, K. (2003). Are the 100 best better? An empirical investigation of the relationship between being a great place to work and firm performance. Personnel Psychology. Vol. 56, Pp. 965-993.

Greening, D. W. and Turban, D. B. (2000). Corporate social performance as a competitive advantage in attracting a quality workforce. Business and Society. Vol. 39, Pp. 254-280.

Heyes, A. G. (2005). A signaling motive for self-regulation in the shadow of coercion. Journal of Economics and Business. Vol. 57 (3), Pp. 238-46.

Hillman, A. J. and Keim, G. D. ( 2001). Shareholder value, stakeholder management and social issues: What’s the bottom line. Strategic Management Journal. Vol. 22(2), Pp. 125–140.

Hodson, R. (2001). Dignity at work. Cambridge: Cambridge University Press.

Kerlin, J. A and Gagnaire, K. (2009). United States. In J. A, Kerlin (Ed.). Social enterprise: A global comparison. Medford: Tufts University Press.

Lantos, G. P. (2001). The boundaries of strategic corporate social responsibility. Journal of Consumer Marketing. Vol. 18 (7), Pp. 595-632.

Logsdon, J. M. and Wood, D. J. (2002). Reputation as an emerging construct in the business and society field: An introduction. Business and Society. Vol. 41 (4), Pp. 365-370.

Maignan, I., and Ferrell, O. C. (2004). Corporate social responsibility and marketing: An integrative framework. Journal of the Academy of Marketing Science. Vol. 32(1), Pp. 3- 19.

Matten, D and Moon, J. (2008). Implicit and explicit corporate social responsibility: A conceptual framework for a comparative understanding of corporate social responsibility. Academy of Management Review. Vol. 33 (2), Pp. 404-424.

Maxfield, S. (2008). Reconciling corporate citizenship and competitive strategy: Insights from economic theory. Journal of Business Ethics. Vol. 80, Pp. 367-377.

McGuire, J. B., Sundgren, A. and Schneeweis, T. (1988). Corporate social responsibility and firm financial performance. Academy of Management Journal. Vol. 31, Pp. 854-872.

McWilliams, A., Van Fleet, D. D. and Kenneth D. C. (2002). Raising rivals' costs through political strategy: An extension of resource-based theory. Journal of Management Studies. Vol. 39, (5), Pp. 707-724.

Morsing, M and Schultz, M. (2006). Corporate social responsibility communication: Stakeholder information, response and involvement strategies. Business Ethics: A European Review. Vol. 15(4), Pp.323-338.

Nurn, C. W and Tan, G. (2010). Obtaining intangible and tangible benefits from corporate social responsibility. International Review of Business Research Papers. Vol. 6(4), Pp. 360 – 371.

Ogbemi, O.B and Akpoveta, E.E. (2012). Community relations and crisis resolution in Niger Delta: A synergy. Benin Mediacom Journal. Number 5, Pp. 84-90

Okedara, T.K. (2007). Corporate social responsibility: A tool for healthy living, paper presented at a seminar organised by Nigerian Institute of Public Relations, Ogun State Chapter, at Iwe Irohin House, Abeokuta, 16th August.

Orlitzky, M. (2008). Corporate social performance and financial performance: A research synthesis. In A, Crane., A, McWilliams., D, Matten., J, Moon and D.S, Siegel (eds.). The Oxford Handbook of corporate social responsibility. Oxford University Press: New York.

Orlitzky, M. and Benjamin, J. D. (2001). Corporate social performance and firm risk: A meta- analytic review. Business and Society. Vol. 40 (4), Pp. 369-396.

Orlitzky, M., Schmidt, F. L. and Rynes, S. L. (2003). Corporate social and financial performance: A meta- analysis. Organisation Studies. Vol. 24 (3), Pp. 403-441

Rao, S.R. (2009). Arguments for and against social responsibility. http://www.citeman.com/7667-arguments-for- and-against-social-responsibility.html. Accessed 2/3/2013

Robins, F. (2008). Why corporate social responsibility should be popularised but not imposed. Corporate Governance. Vol. 8 (3), Pp. 330-341.

Sen, S and Bhattacharya, C. B. (2001). Does doing good always lead to doing better? Consumer reactions to corporate social responsibility. Journal of Marketing Research. Vol. 38 (2), Pp. 225-243.

Siddique MN, Akhter MM and Masum AA. 2013. Service Quality of Five Star Hotels in Bangladesh: An Empirical Assessment. Asian Business Review, 2, 67-72.

Siddique MN, Akterujjaman SM, Perveen R. “Customers’ Satisfaction towards the Services of Customer Care Centers of Grameenphone Limited: A Study on Dhaka and Khulna City, ASA University Review, Centre for Socio-Economic Research, ASAUB, Volume 6, No. 2 (11th IssueJuly-December 2012, pp. 45-60.

Siddique MN. 2012. Bank Selection Influencing Factors: A Study on Customer Preferences with Reference to Rajshahi City. Asian Business Review, 1, 80-87.

Smith, M (n.d). Four types of corporate social responsibility. http://smallbusiness.chron.com/four- types- corporate-social-responsibility-54662.html. Accessed 3/3/2013.

Solomon, R. C. and Hanson, K. R. (1985). It is good business. New York: Atheneum.

Srinivas, R. K. (2002). Strategic human resource development: Strategic HRD System practices and facilitators. New Delhi: Prentice-Hall.

Tsoutsoura, M. (2004). Corporate social responsibility and financial performance. http://responsiblebusiness.haas.berkeley.edu/documents/FinalPaperonCSR_PDFII.pdf. Accessed 12/11/2014.

Turban, D. B. and Cable, D. M. (2003). Firm reputation and applicant pool characteristics. Journal of Organisational Behaviour. Vol. 24 (6), Pp. 733-751.

Turban, D. B. and Greening, D. W. (1996). Corporate social performance and organisational attractiveness to prospective employees. Academy of Management Journal. Vol. 40, Pp. 658-672.

DOI: http://dx.doi.org/10.18034/ajtp.v1i3.532


  • There are currently no refbacks.

Copyright (c) 2015 Md. Nur-E-Alam Siddique

Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.