The Good, the Bad, and the Successful - How Corporate Social Responsibility Leads to Competitive Advantage and Organizational Transformation

This paper presents a referential stage model for corporate social responsibility (CSR) implementation by linking CSR to four business operations: project management, quality management, strategic management and organizational learning. Companies try to cope with societal demands by integrating them into these business operations: (1) integrating societal demands into project management by initiating a project in an area that is perceived as 'good'; (2) avoid 'bad things' by applying quality management for CSR implementation; (3) strategic CSR perceives societal demands as opportunities to create shared value and (4) transformational CSR helps to overcome constraints like low materiality and developing the capabilities of a company. While the first two stages aim at 'doing good'or 'avoiding bad', strategic and transformational CSR are key for 'being successful'. Based on extended literature review and well-documented studies, our referential framework offers insights into underlying patterns, potentials and limitations of linking CSR to business operations. Companies can assess the stage they have reached, strive for higher materiality, boost their competitiveness, and evolve in terms of CSR maturity. Hence, the referential framework adds a new and application-oriented perspective to the discussion of the business case for CSR and demonstrates how stages lead to competitive advantage and organizational transformation.