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ISSN: 1649-3877

Listed by: Cabells and EBSCO

Frequency: 1 online Volume per year

The Why, When and How of Corporate Social Responsibility

JSME Vol 4: 2008

Author(s): Juan Luis Martínez (IE Business School, Spain)

Abstract:
This paper follows Greenfield’s (2004) argumentation that the way in which the term
Corporate Social Responsibility (CSR) is being used imposes responsibility on firms, rather than on
individuals. In this paper, the author challenges this trend, and argues that Individuals can, in fact,
make a difference. This will lead to correct ethical evaluations. Thereafter, the author suggests CSR
is a set of practices a company may follow in order to improve its relationship with its stakeholders
and to create value. He claims that CSR practices must go beyond the contractual obligations of
those relationships, and rise from voluntary initiatives. Because it must be voluntary, CSR can be
the source of differentiation in the competitive environment of the market. Thus the author shows
how, if the company is forced to follow these practices by legal imperatives, they lose their
effectiveness as a competitive tool. It is on this proposed understanding of CSR that some
recommendations are put forward.

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