Skip to content

Ask an Academic

  • Home
  • Ask a Question
  • Contact Us
Teaching a class of students

CSR and Competitive Advantage

September 20, 2019 by AskanAcademic.com

CSR and Competitive Advantage

Question

In what manner is CSR relevant to competitive advantage?

Answer

Corporate Social Responsibility (CSR) is very relevant to helping a company achieve competitive advantage. Reputation is something that is very important in the business world. If a company has a poor reputation for being socially responsible it is likely that they will not be a popular company and potential consumers will not buy the company’s products or services. However, if a company has a good reputation for being socially responsible then this can lead to increased sales and ultimately competitive advantage for the company with a good reputation. 21st century consumers are becoming increasingly aware of ethical issues relating to business practices. Therefore, if a company can position itself through their operations and marketing actions as being an ethical company and one that cares about society they can gain competitive advantage over their industry rivals. Volvo and Whole Foods Market are good examples of two companies in different industries that have used such a strategy to enhance their competitive advantage.

Another way in which CSR practices are relevant to competitive advantage is by taking a CSR approach to business resources used. A company could reduce the costs of their operations, which in turn could lead to lower product/service costs, and if the company is following a cost leadership strategy then this could create competitive advantage for such a company. For example, if a company is able to reduce the energy costs or packaging needed to produce a product this would save them money and such savings could be passed on to the consumer by lowering the cost of the end product. Having the cheapest product available would lead to competitive advantage.

References

Post navigation

Previous Post:

Decision making in a global environment

Next Post:

What South African Laws Governed Public Access to Beaches During Apartheid?

Search Q&As

Categories

  • Art Media and Literature (74)
  • Business and Management (256)
  • Computing and ICT (14)
  • Construction and Engineering (35)
  • Education (90)
  • Environmental Sciences (2)
  • Finance and Economics (91)
  • Health (64)
  • Languages (12)
  • Law (88)
  • Mathematics and Statistics (2)
  • Medical Sciences (19)
  • Politics and International Relations (83)
  • Research Methodology (1)
  • Science (49)
  • Social Sciences (101)

Archives

Who We Are

Askanacademic.com is owned and operated by All Answers Ltd, a company registered in England and Wales. Company Registration No: 4964706. VAT Registration No: 842417633. Data Controller No: Z1821391.

Registered office:
Venture House
Cross Street
Arnold
Nottingham
NG5 7PJ

Main Navigation

  • Home
  • Ask a Question
  • Contact Us

Legals

  • Cookie Policy
  • Privacy Policy

Popular Categories

  • Business and Management
  • Law
  • Finance and Economics
  • Health
An an Academic Logo
© 2023 Ask an Academic | WordPress Theme by Superb Themes
This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Reject
Read More
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT