Corporate social responsibility: a strategic tool to achieve corporate objective

Abstract

The wide consideration of corporate social philanthropy as Corporate Social Responsibility (CSR) by managers and their board has not yield the expected strategic benefit, but in reverse it has sometimes produced confusions and misunderstanding between the organization and their stakeholders. The pressure on managers to address the social needs of their stakeholders using the limited organizational resources is now undeniably strong. Therefore the need for the strategist to focus on strategic fit of the resources of the organization and the market opportunities becomes very vital.

In understanding the relationship among corporate objective, CSR strategy and organizational responsibility to stakeholders, the CSR principles become essential and the models for institutionalizing CSR. On this basis the objective of the paper is to establish the long-term strategic advantage of corporate social responsibility over corporate social philanthropy.