Corporate social responsibility and competitive advantage
According to Cavusgil et al (2014) ethical behaviour is an essential component for successful business in today’s global environment. They further state that “Adhering to corporate social responsibility (CSR) implies a proactive approach to ethical behaviour in which firms not only seek to maximise profits, but also to benefit society and the environment” (p.153).
Why is ethical behaviour ‘good for business’? Is there any link between CSR and gaining competitive advantage for the firm? Illustrate by discussing the cases of at least two firms – one which demonstrates success, and another that demonstrates failure, in their CSR practices.