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Integrating CSR with Business Strategy: A Tension Management Perspective

Author

Listed:
  • Jaakko Siltaloppi

    (Aalto University)

  • Risto Rajala

    (Aalto University)

  • Henri Hietala

    (Aalto University
    CGI Finland Ltd.)

Abstract

Integrating corporate social responsibility (CSR) into a for-profit organization’s business activities is fraught with tensions. This paper reports a case study of a construction company, exploring how different tensions emerged to challenge company-level aspirations for strategic CSR integration. The study identifies three types of persistent CSR tensions and four management practices, discussing how the management practices led the organization to navigate CSR tensions in both active and defensive ways. Furthermore, the study explicates why the case company succeeded in integrating CSR into formal business strategy and shared attitudes but struggled with CSR integration in the domain of day-to-day operations. The paper contributes to the CSR literature by developing a tension-centric perspective on CSR development. It highlights the necessity of tension navigation at both the organizational and the action levels, the key role of active (as opposed to defensive) navigation of CSR tensions, and the importance of alignment between organizational and action levels in navigating tensions for sustaining strategic focus on CSR over time.

Suggested Citation

  • Jaakko Siltaloppi & Risto Rajala & Henri Hietala, 2021. "Integrating CSR with Business Strategy: A Tension Management Perspective," Journal of Business Ethics, Springer, vol. 174(3), pages 507-527, December.
    • Handle: RePEc:kap:jbuset:v:174:y:2021:i:3:d:10.1007_s10551-020-04569-3
    DOI: 10.1007/s10551-020-04569-3
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    References listed on IDEAS

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    5. Smith, Hannah & Discetti, Roberta & Bellucci, Marco & Acuti, Diletta, 2022. "SMEs engagement with the Sustainable Development Goals: A power perspective," Journal of Business Research, Elsevier, vol. 149(C), pages 112-122.
    6. Luis Fonseca & Filipe Carvalho & Gilberto Santos, 2023. "Strategic CSR: Framework for Sustainability through Management Systems Standards—Implementing and Disclosing Sustainable Development Goals and Results," Sustainability, MDPI, vol. 15(15), pages 1-24, August.
    7. Meera Al-Marri & Ashly H. Pinnington, 2022. "Managing Sustainability Projects for Social Impact from a Corporate Social Responsibility Perspective," Sustainability, MDPI, vol. 14(11), pages 1-16, May.
    8. Rosa Fioravante, 2024. "Beyond the Business Case for Responsible Artificial Intelligence: Strategic CSR in Light of Digital Washing and the Moral Human Argument," Sustainability, MDPI, vol. 16(3), pages 1-16, February.

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