Corporate Social Responsibility (CSR) and Stakeholders Management

This chapter describes the ways in which CSR practices can develop and strengthen company's relation with their key stakeholders in order to create both social and financial value to the companies. Using companies CSR reports, current study identifies theoretically for the case of Romania the mechanisms and the important contingencies in whether the CSR practices are considered by stakeholders authentically and effective and if these practices persist in time. The importance of relation between company and stakeholders through CSR practices is due because of the long term success of the company as there are outside immediate profit maximization goals. We conclude from companies CSR reports and websites that in order to achieve long term financial performance, they (the companies) engage in specific CSR activities as social activities. Thus, companies select 'the right' social activities turning them into companies' strategies addressed to specific types of stakeholders, namely to those are trying to strengthen their relation with.