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The important role of corporate social responsibility capabilities in improving sustainable competitive advantage

Author

Listed:
  • Eun-Mi Lee
  • Hyun Jung Lee
  • Jae-Hyeon Pae
  • Seong-Yeon Park

Abstract

Purpose - This study examines the effect of corporate social responsibility (CSR) capabilities on corporate association and, consequently, customer orientation and price premium, which are key to competitive advantage. Design/methodology/approach - This study adapts survey instrument targeting employees of a Korean firm. A total of 168 usable questionnaires were collected from seven Korean firms that were conducting CSR and public relations (PR) activities. Findings - CSR and PR capability induce positive CSR and corporate ability (CA) associations, which improve customer orientation and increase price premium. The results of our empirical study indicate that a company should consider both CSR and PR capabilities to enhance its employees’ positive attitude to its CSR activities and CA association. Research limitations/implications - This study has undertaken a holistic examination of important role of CSR and PR capability and their outcomes, namely customer orientation and price premium. Originality/value - Understanding of CSR capabilities in terms of competitive advantage is imperative to the establishment of strategic CSR initiatives. This study attempts to answer whether corporate capabilities for social responsiveness improve a company’s competitive advantage.

Suggested Citation

  • Eun-Mi Lee & Hyun Jung Lee & Jae-Hyeon Pae & Seong-Yeon Park, 2016. "The important role of corporate social responsibility capabilities in improving sustainable competitive advantage," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 12(4), pages 642-653, October.
    • Handle: RePEc:eme:srjpps:v:12:y:2016:i:4:p:642-653
    DOI: 10.1108/SRJ-11-2015-0163
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    Citations

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    Cited by:

    1. Víctor Meseguer-Sánchez & Emilio Abad-Segura & Luis Jesús Belmonte-Ureña & Valentín Molina-Moreno, 2020. "Examining the Research Evolution on the Socio-Economic and Environmental Dimensions on University Social Responsibility," IJERPH, MDPI, vol. 17(13), pages 1-30, July.
    2. Bastič Majda & Mulej Matjaž & Zore Mira, 2020. "CSR and Financial Performance – Linked by Innovative Activities," Naše gospodarstvo/Our economy, Sciendo, vol. 66(2), pages 1-14, June.

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