Influence of Corporate Social Responsibility on Competitive Abilities of Corporations

  • Vytautas Juščius Klaipedos universitetas
  • Vytautas Snieška Kaunas University of Technology
Keywords: corporate social responsibility (CSR), competitive advantage, stakeholder.


Influence of corporate social responsibility on competitive abilities of corporations is analyzed in the article. While assessing the role of CSR in the processes of competitive advantages formation on the academic ground, the following traditional models of the competitive abilities analysis can be used: the model of five forces, the model of resource based approach and the model of network approach. Every model of the company’s competitive ability analysis has its advantages and disadvantages. Each of them can be useful in researching the connection between competitive advantages and CSR because they emphasize different aspects of the origins and the importance of advantages. The summarized scheme of the formation of competitive advantages, connected with CSR, is presented in the article. Meeting requirements of consumers is considered to be the centre-line of business oriented towards the market. The complex of marketing established for this purpose has to be founded on the principles of social responsibility. Meeting the requirements of consumers the interests of other groups and members of the society must be considered, so it is necessary to find out about these interests during the interactions with stakeholders. The tension between business and society is obviously unprofitable for both sides, thus its prevention and elimination are very important strategically.Only the companies, which aim to save all universally accepted ethical standards of social behaviour, can expect a positive attitude and support in the modern society. Moreover, helping to solve burning social and ecological problems they get competitive advantages and ensure their successful work in future. The company’s attitude towards CSR is reflected in its mission, vision, value-system and the whole culture of the organization.At the present stage of social development consumers are getting greater power to influence business organizations. As the modern informative technologies are broadening and the number of their users is increasing, the population has got greater possibilities to compare products and services, to choose them as well as sellers and ways of selling. Consumers are mostly intolerant of the goods or companies, which are indifferent to social and ecological problems. On the contrary, the companies, which worry about them, are supported by consumers. Getting CSR advantages enterprisers tend to consolidate, support, strengthen, defend, renovate and change them. For this purpose a new system of communication with objective markets is created or modified. The traditional complex of support is not effective although it is supplemented with unconventional instruments in order to form a set of CSR competitive advantages. Openly announced CSR reports have become the main instrumentality of communication in the field of social responsibility for recent decades. Rapidly developing processes of globalization throw new challenges for CSR competitive advantages creation. Business interaction with stakeholders has been becoming more complicated and requires from companies new knowledge, different skills and additional recourses.