Failure to align CSR initiatives with corporate strategy may have disastrous consequences for a company. I honestly believe that the winning companies of this century will be those who prove with their actions that they can be profitable and increase social value-companies that both do well and do good... Increasingly, shareowners, customers, partners and employees are going to vote with their feet-rewarding those companies that fuel social change through business. This is simply the new reality of business-one that we should and must embrace.
Traditionally, shareholder value maximization has been advocated as the objective of most corporate entities. To achieve this objective, companies have been advised to concentrate on making money legally, without much regard for corporate social responsibility. In other words, "The business of business is business." (Friedman, 1962).
However, there has been a change in this attitude recently. Companies are beginning to realize that in order to gain strategic initiative and to ensure continued existence, business practices have to focus not only on profits, but also on public goodwill and responsible business etiquettes (Reynard and Forstater, 2002). In order to compete effectively in a competitive environment, companies need clearly defined business practices with a sound focus on public interest (Gray, 2001). |
