CSR Practices and Competitive Advantages: A Descriptive Study

CSR is the managerial compulsion to defend and enhance both the welfare of society as a whole and the interests of the company. So, this study examines the competitive advantages of CSR practice. This study is based on two theories; the stakeholder’s approach, which states that companies have essential groups that need to be cared for, and the iron law of CSR, which says that companies that fail to utilize their power responsibly will lose it in the long run. Reviewing prior studies, it was found that several benefits proliferate to companies that practice CSR; numerous advantages were recognized. Among these others consist improved brand and reputation, a decline in operation costs, attracting new customers, balancing power with responsibility, discouraging government regulation, improving a company’s image, promoting profits, superior relations with the investment groups, and easier access to capital, improved employee relations, efficiency and innovation and stronger relations with society through stakeholder involvement. This paper concludes that there is a greater chance to be benefitted from initiating CSR actions. Thus, it suggests that companies should try to provide due attention to CSR, and this practice needs to consider as a continuous process.