Introduction Governments, activists, and the media have become adept at holding companies to account for the social

consequences of their activities. Myriad organizations rank companies on the performance of their corporate social responsibility (CSR), and, despite sometimes questionable methodologies, these rankings attract considerable publicity. As a result, CSR has emerged as an inescapable priority for business leaders in every country. Many companies have already done much to improve the social and environmental consequences of their activities, yet these efforts have not been nearly as productive as they could be—for two reasons. First, they pit business against society, when clearly the two are interdependent. Second, they pressure companies to think of corporate social responsibility in generic ways instead of in the way most appropriate to each firm‟s strategy. The fact is, the prevailing approaches to CSR are so fragmented and so disconnected from business and strategy as to obscure many of the greatest opportunities for companies to benefit society. If, instead, corporations were to analyze their prospects for social responsibility using the same frameworks that guide their core business choices, they would discover that CSR can be much more than a cost, a constraint, or a charitable deed—it can be a source of opportunity, innovation, and competitive advantage. In this article, we propose a new way to look at the relationship between business and society that does not treat corporate success and social welfare as a zero-sum game. We introduce a framework companies can use to identify all of the effects, both positive and negative, they have on society; determine which ones to address; and suggest effective ways to do so. When looked at strategically, corporate social responsibility can become a source of tremendous social progress, as the business applies its considerable resources, expertise, and insights to activities that benefit society.

By linking CSR and sustainable competitive advantage. Strategic CSR is defined as any responsible activity that allows a firm to achieve a sustainable competitive advantage. We will discuss the conditions under which CSR can contribute to sustainable competitive advantage. we can demonstrate how CSR can become a major strategy for competitive advantage which will sustain in the long run. regardless of motive. which serve as the main instruments of competitive advantages formation. CSR is referred to as “the private provision of public goods” in the new literature on the economics of industrial organization.Abstract We analyze the creation and capture of private and social value by firms that adopt corporate social responsibility (CSR) strategies. resource-based theory (RBT) framework is integrated with concepts and tools from economics. Research Questions 1. . To provide a roadmap for managers to accomplish this objective. Does CSR increases profitability of a company? Hypothesis The aim of this research is to identify the CSR aspects. Does CSR gives a company sustainable competitive advantage? 2.

However. Carlislea nd Faulkner. Whetten et al. McWilliams and Siegel. 2006. 2006. policies and practices are permanently defined and redefined. 1984. 2005) or bottom of the pyramid (Prahalada nd Hammond.Literature Review Corporate social responsibility (hereinafter CSR) has become one of the central issues on the agenda of organizations today. 2003. The bottom line is that there seems to be a connection between CSR and competitiveness. 1990). 2006). 2007. we argue that CSR and competitiveness relate through a learning and innovation cycle. 1979. Sethi. 2006. business ethics (Solomon. There are many studies trying to analyze the relationship between CSR and financial performance (Chand and Fraser. while CSR is presented in theory as a central business issue that has profound and wide-spread impact on most business operations (Ayuso et al. 2002).. Valor. Goodpaster. Zadek. but is still a long way from being a centre stage on corporate strategy (Smith. 2003). 2002). 2006. corporate citizenship( Waddock.. Freeman. Corporate Social Responsibility (CSR) CSR is one of the frames of reference that tries to shed light on the role business should play in society (Carroll. corporate governance (Freeman and Evans. Smith. Van De Ven and Jeurissen. Lozano. 2006).2 000. One of the key problems is the lack of understanding about the impact CSR has on competitiveness (Porter and Kramer. but the nature of the relationship is unclear (Mackeye t al. Stewart. 1995. Porter and Van der Linde. 2006). 1995. 1999. accountability (Elkington. 2001). Many companies seem to approach CSR solely from a reputation perspective. 1995). 1975). CSR is approached from different perspectives . stakeholder management (Donaldson and Preston. 1998. 2005.such as social performance (Carroll. As a conclusion. some authors argue that in many cases CSR has not been more than a cosmetic effort on the part of companies to respond to societal demands (Porter and Kramer. social contract (Donaldson and Dunfee. Financial performance or smart practices don't automatically imply long-term competitiveness (Porter and Kramer..2 001). Swanson. 2002). 2005). Portera nd Kramer. One of the key management questions in that debate is whether implementing CSR . where corporate values. 2001). 1983. 1993).

CSR is alternatively referred to as “corporate citizenship. “People” constitute the company‟s stakeholders: its employees. the government. investors. License to Operate: In this current business world organization adopting this approach recognized the interconnectedness of business operations and larger external regulation set by governments. suppliers and vendors. But they are not eager to do this types of social . stakeholders expect that companies should be more environmentally and socially responsible in conducting their business. Porter and Kramer. and the environment. 2006. The Emergence of Corporate Social Responsibility CSR is an important part of many international and local organizations. Increasingly.  Reputation: Organizations has to realize that CSR initiatives could be justified on the grounds that they could improve the image of the organization. Sustainability: Few organizations chose to adopt CSR as a principle means to ensure the sustainability of operations over the long-term. It helps them to gain competitive advantage with their competitor. 2006) According to Donaldson and Preston (2008) analysis of CSR definitions “there is no universal definition of corporate social responsibility.affects firm competitiveness (Chand and Fraser. its brands and its stock. communities and stakeholders. it generally refers to transparent business practices that are based on ethical values. 2006. companies are responsible for the totality of their impact on people and the planet”. 2002.” which essentially means that a company should be a “good neighbor” within its host community. Thus. business partners. According to Porter and Kramer (2006) organizations developed four unique frameworks for conceptualizing and applying corporate social responsibility programs. compliance with legal requirements. beyond making profits. Draper. 2006. customers. communities. and the community. In the business community. Handy. Haigh and Jones. These are explaining below:    Moral Appeals: So many organizations adopted CSR programs because they believed that it was simply the right thing to do. and respect for people.

for example.0008% of the world‟s fresh water supply. but it offers no equally convenient multinational corporation to target. In fact. Many companies awoke to it only after being surprised by public responses to issues they had not previously thought were part of their business responsibilities. is a far more pressing issue. they are much less clear on what to do about them. even if those corporations actually have had little impact on the problem at hand. have grown much more aggressive and effective in bringing public pressure to bear on corporations. for example. both on the right and the left. Activist organizations of all kinds. Nike. Government regulation increasingly mandates social responsibility reporting. would require every publicly listed company to disclose ethical. Shell Oil‟s decision to sink the Brent Spar. Pharmaceutical companies discovered that they were expected to respond to the AIDS pandemic in Africa even though it was far removed from their primary product lines and markets. and environmental risks in its annual report. despite the fact that Nestlé‟s bottled water sales consume just 0. These pressures clearly demonstrate the extent to which external stakeholders are seeking to hold companies accountable for social issues and highlight the potentially large financial risks for any firm whose conduct is deemed unacceptable. the world‟s largest purveyor of bottled water. The inefficiency of agricultural irrigation. social. Nestlé. Pending legislation in the UK. which uses 70% of the world‟s supply annually. Fastfood and packaged food companies are now being held responsible for obesity and poor nutrition. faced an extensive consumer boycott after the New York Times and other media outlets reported abusive labor practices at some of its Indonesian suppliers in the early 1990s. While businesses have awakened to these risks. has become a major target in the global debate about access to fresh water. the most common corporate response has been neither strategic nor .activities situation has forced them to do so. an obsolete oil rig. for example. Activists may target the most visible or successful companies merely to draw attention to an issue. in the North Sea led to Greenpeace protests in 1995 and to international headlines.

Of the 250 largest multinational corporations. Improving human resource management practices:  Establish policies that will be preferable and helpful for the health and safety of all employees and make the policies known to employees. reuse and recycle. Vital issues for CSR initiatives for small business There are many issues involved in practical CSR activities in a small business and these initiatives are likely to be of interest to personnel in larger firms as well. increase the durability of products.  Try to produce or use recycled and recyclable materials.  Establish an environmental management system with objectives and procedures for evaluating progress. renewable energy) power electricity suppliers and energy-efficient lighting that will reduce the consumption of electricity. in separate sustainability reports—supporting a new cottage industry of report writers. 64% published CSR reports in 2005. Improving the environment:  Reduce the consumption of energy.  Consult employees on about how to knob a recession in business (e.  Use “green” (i. . and emissions of hazardous substances and use these resources according to the needs and wants.  When layoffs or closures cannot avoid than offer outplacement services.g. either within their annual report or..e. offer the option of all staff taking pay cuts or reduced hours instead of layoffs). retraining and severance benefits. for most. the centerpieces of which are often glossy CSR reports that showcase companies‟ social and environmental good deeds. water and other natural resources. minimizing negative impacts and transferring good practices. and minimize packaging through effective design -reduce.operational but cosmetic: public relations and media campaigns.

ethnicity. think creatively about where to advertise the job and whether there are any local employability schemes (e. disability. age. Promoting diversity and human rights:  Have to ensure that all staff knows that there are explicit policies against discrimination in hiring. ethnicity. Ensure a healthy workplace (e. sexual orientation or religion. age. run by a local council or employer) to help find work for people who are home-less or disabled and it will be helpful for those poor effected people. implement a smoking ban or drug and alcohol abuse support program).  Try to avoid insulting employees in their workplace on the basis of gender. training or termination of any employee on the basis of gender. Helping the community:  Encourage and motivate employee volunteering in the community and with financial contributions and help in kind.g. and provide exercise facilities that will help them keep healthy.  Look for opportunities to make excess product and surplus equipment available to local schools. sexual orientation or religion. charities. salary. race. community groups and other sector for the progress of the people‟s livelihood. race.  Always has to be concern about human rights. promotion.  Contribute some product or services available free or at cost to charities and community groups. disability..  When hiring. .g.

its host communities. there is also fierce competition for skilled employees. a firm may become certified to environmental and social standards so it can become a supplier to particular retailers. and responding to markets. and relevant in a rapidly changing business world. and the marketplace can greatly contribute to the sustainability of its business success. processes and markets.Significance of CSR Now a day‟s many companies are realizing that in order to stay productive. . such as “family-friendly” policies. The history of good business has always been one of being alert to trends. and consumer loyalty. investors. Even for firms that do not have direct retail exposure through different brand their reputation for addressing CSR issues as a supply chain partner—both good and bad can be crucial commercially.  Enhanced ability to recruit. For example. innovation. they have to become socially responsible. competitiveness and market positioning: Drawing feedback from diverse stakeholders can be a rich source of ideas for new products. Because of globalization.  Improved innovation. and technology has accelerated time and masked distance. develop and retain staff: This can be the direct result of pride in the company‟s products and practices. or of introducing improved human resources practices. or brand equity. Key potential benefits for firms implementing CSR include:  Improved reputation management: Organizations that perform well with regard to CSR can build their reputation but if they cannot does it properly than it might hamper their reputation. globalization has blurred national borders. resulting in competitive advantages. and to protect the reputation of their brands. How a company relates with its workers. companies want to increase their ability to manage their profits and risks. In the last decade. Company has to recruit skillful staff and also has to retain their experienced staffs properly. competitive. Given this sea change in the corporate environment. Increasingly. mainstream advertising features the environmental or social benefits of products.

 More robust “social license” to operate in the community: Improved citizen and stakeholder understanding of the firm and its objectives and activities translate into improved stakeholder relations. This. political and other risks in an increasingly complex market environment. Considering the interests of parties concerned about a firm‟s impact is one way of better anticipating and managing risk. assessing the environmental and energy aspects of an operation can reveal opportunities for turning waste streams into revenue streams (wood chips into particle board. and thereby reducing risks. CSR can help build “social capital. private and civil society alliances (all of which relate closely to CSR reputation. Larger firms can stimulate smaller firms with whom they do business to implement a CSR approach.  Improved ability to attract and build effective and efficient supply chain relationships: A firm is vulnerable to the weakest link in its supply chain. social. For example. economic. for example) and for system-wide reductions in energy use. environmental. discussed above).  Enhanced operational efficiencies and cost savings: These flow involves to improve efficiencies identified through a systematic approach to management that includes continuous improvement.  Enhanced ability to address change: A company with its “ear to the ground” through regular stakeholder dialogue is in a better position to anticipate and respond to regulatory. Better anticipation and management of an ever-expanding spectrum of risk: Effectively managing legal. can improve the security of supply and overall market stability. Increasingly. economic. social and environmental changes that may occur. and costs. firms use CSR as “radar” to detect evolving trends in the market.” . may evolve into more robust and enduring public. some huge apparel retailers require their suppliers to comply with worker codes and standards. with greater oversight and stakeholder scrutiny of corporate activities. For example. Like-minded companies can form profitable long-term business relationships by improving standards. in turn.

governments have expedited approval processes for firms that have undertaken social and environmental activities beyond those required by regulation. economic. “Responsible consumerism” is not exclusively about changing consumer preferences. In some countries. Diverse religions and cultures also bring distinct attitudes towards community social behavior and engagement as well as support and philanthropic contributions. These social contracts.  A catalyst for responsible consumption: Changing unsustainable patterns of consumption is widely seen as an important driver to achieving sustainable development. Practice of CSR in Asia Pacific and other regions While sustainability is essentially a global concept. governments use CSR indicators in deciding on procurement or export assistance contracts. moreover. A business plan incorporating a good  Improved relations with regulators: In a number of jurisdictions. and how regulatory authorities mediate the relationship between producers and consumers. investors are looking for indicators of effective CSR management. because to be effective CSR needs to flow naturally from the social contracts that define the relationship between business and society. Access to capital: Financial institutions are increasingly incorporating social and environmental criteria into their assessment of projects. government sustainability goals cannot be reached. and high value placed on relationships. their relationship to consumer rights and sustainability issues. The Asia Pacific context is distinct. There are long-standing traditions of respect for family and social networks. This is quiet normal. Governments in the region also . When making decisions about where to place their money. It is also about what goods are supplied in the marketplace. derive from distinct cultural. This is being done because governments recognize that without an increase in business sector engagement. and governance models. CSR has developed differently in different parts of the world. The rise of a homegrown version of CSR across Asia is therefore developing with both similarities and differences to that practiced in the rest of the world. social stability and education.

and also impact on how “Made-in-Asia CSR” will influence global perspectives on sustainability. but rather developed primarily by and for Western interests. China.play distinct roles There are unique Asian realities that appear to be critical in shaping regional approaches to a sustainable and responsible business model. because it may have more credibility than Europe or the US. linguistically. Finally. Second. this positions Asia to influence other regions of the world on a range of issues. First. These distinct features shape the way CSR is defined in Asia. this means that Asia. and economically than other regions of the world. Organizations such as . it is a mistake to refer to one version of Asian CSR because it is defined differently across the region. as opposed to the more legalistic approaches favored in the West. particularly in comparison to the US and Europe. Asia. This contrasts sharply with Western perspectives. Coupled with the rise of “South-South” trade. Asia is more diverse in culturally. taken as a whole. is a fascinating laboratory in which various approaches and models can be tested. as addressed below. India and Russia are poised to assert ever more influence in the coming decades. which are focused more on maintaining high living standards. Some of this reluctance also results from the desire to prioritize economic growth over other factors. includes a dynamic mix of developed and developing economies. Asia‟s rising economic power coincides with rising political power. Asian businesses and policymakers are substantially less inclined than Western companies to rely on established international principles and standards on social and environmental questions. meaning that Asian perspectives on CSR may also have more influence on global definitions of the concept. The promise and reality of rising living standards remains foremost in the minds of policymakers and businesses. This also reflects cultural affinities for consensus building. Of course Asia is also experiencing the most rapid economic growth of any of the world‟s regions. more so than other regions. Some example of CSR activities of different companies of different region of the world is given below: CSR practices in Bangladeshi perspective A number of corporations are now following an increased commitment to CSR beyond just profit making and compliance with regulation. Some of this results from a sense that these standards are in fact not universal.

**Safe drinking water: „Probaho‟ for millions of people in Bangladesh. This probably makes our imitative the largest private sector driven afforestation programme in the country.5 million saplings throughout Bangladesh. Satkhira.  BAT (British American Tobacco) **Afforestation: Bat has started programme when they joined hands with the Forest Department in 1980 to conserve the forests and combat the negative impacts of climate change. project. This initiative is also aligned with the Government‟s aim to achieve the Millennium Development Goals (MGDs). Kushtia. we aim to provide rural communities with safe drinking water. CARE Bangladesh. They will distribute four million saplings in 2011. Lalmonirhat and Chuadanga districts provide . While these initiatives are more discretionary in their nature. the only available drinking water is laced with arsenic and therefore extremely hazardous to health. Tangail. they have contributed around 67. Through Probaho. Bangla for „flow‟. These organizations are preparing Corporate Social Audit catering to small/Medium enterprises. Our endeavors have received several awards both at the National and Local Government levels. Till now. Jhenidah. Having recognised the gravity of the issue. Kurigram. our 18 water filtration plants in Manikganj. they have resulted in the creation of jobs and value-added services to communities that BATA and CARE are showcasing as CSR programs in action. they stepped forward with the „Probaho‟. Katalyst and Bangladesh Enterprises (BEI) are working at the forefront of CSR activities in Bangladesh. Using Government approved community based water filtration technology. Meherpur.

to promote understanding of its product and help to develop qualified people for industry in the future. The Company also wishes to promote the study of science. and has plans to make its stores entirely powered by renewable energy. a Dutch electronics firm. has announced major changes in how it plans to use the supply chain to improve social and environmental conditions. Tata Steel supports the right to free and compulsory education for all children up to the age of fourteen years and supports initiatives to improve literacy levels amongst adults. the U.S.  Philips.000 people every day. from its inception took various initiatives in education that have catered to the needs of youth in rural and urban areas alike.approximately 95. CSR practices in Asia perspective  Tata Steel has. It‟s “Green Flagship” and “Lighting the Bottom of the Pyramid” campaigns are examples. .  Disaster Risk Education at Schools the best Practices and Principles for APEC (the AsiaPacific Economic Cooperation) Member Economies.-based retail chain.000 litres of pure drinking water for 47. has launched a range of strategies built around responding to sustainable development challenges. Guidelines and best practices for post-disaster damage and loss assessment CSR practices in other region perspective  Wal-Mart.

labeling them „best of breed‟ among alternative corporate social initiatives in terms of their ability to improve consumer well being while at the same time helping achieve strategic goals such as market development and increased sales. Kotler and Lee 2005. is a strategic imperative. (b) key internal and external relation-ships. Girl Scouts 2010). 1993). the personal care brand Dove. 1998). 1992). understanding competitiveness not solely as productivity. but instead a way to achieve their strategic objectives while at the same time bettering the world (i. and suicidal tendencies (Unilever 2010.e. has an initiative aimed at a critical social issue facing its consumers and their families: pervasive low self-esteem among adolescent and preadolescent girls. Kotler and Lee (2005) call such initiatives corporate social marketing initiatives. adaptability. In general terms. In this current competitive business world corporate social responsibility (CSR). more and more companies are engaging in initiatives that try to improve public health. 1991). and Pitelis 2009. McGahan. industry and firm levels (Ambasthaa nd Momaya. Margolis and Walsh 2003. eating disorders.g. In line with this emerging perspective. but as the ability of a company to design. John Kay described firm competitiveness in terms of four factors: (a) the capacity to innovate. societal and environmental well being through business practices. Competitiveness must account for more dynamic firm capabilities such as flexibility. Roberts. (c) reputation and (d) strategic assets (Kay.. policies and resources. the environment or community well being through the active participation of key stakeholder groups such as consumers. Winer. This program. Mahoney.Competitive Advantage Competitiveness is a multidimensional concept that can be used at country. considering the price and non-price qualities (D'Cruz and Rugman.2 004). creating joint value for the firm and society). Encouraged by the thinking of leading strategy.. safety. Lemon. a firm‟s commitment to maximize long-term economic. management and marketing scholars (e. Literature on CSR and competitiveness is rare. Porter and Kramer 2006). in partnership with the Girl Scouts. produce and/or market products superior to those offered by competitors. and Raghubir 2010. with accompanying risky behaviors such as smoking. competitiveness is described as the strength of an organization in comparison with its competitors (Murths and Lenway. although it has grown exponentially. which comprises age-appropriate . quality or marketing (Barney. most forward-thinking firms across the globe are approaching CSR as not merely their ethical responsibility to society and the environment. For example.

In contrast. . engaging in pro-brand behaviors (e. Bhattacharya and Korschun 2006. there is slight insight into the actual consumer-level dynamics underlying a company‟s ability to use CSR as a strategic competitive lever. and competitive advantage. An important strategic objective for many firms/brands is to gain a competitive advantage over their often alarming rivals. neglecting the role of competition in the strategic returns to CSR.. Godfrey.also Dove consumers to embrace a wider definition of beauty. Sen. why and how of customer reactions. Key to sustainable competitive advantage is to link CSR to the strengths of the business. a constraint.g. Du. Yet. Margolis and Walsh 2003). through their CSR actions. is positive but ambiguous. investment professionals. they would discover that CSR can be much more than a cost.”(December 2006). build a strong sense of self. while marketing has focused on the when. innovation. while the notion that CSR can lead to competitive advantage is implicit to current thought in management. there exists little conceptual clarity regarding when..curricular and workshops that inspire girls . or a charitable deed—it can be a sources of opportunity. how and why firms might be able to achieve their strategic goals. Thus.. This is due in part to the unequal perspectives the different disciplines have brought to their examination of strategic CSR. Michael Porter and Mark Kramer state in Harvard Business Review that if “corporations were to analyze their prospects for social responsibility using the same frameworks that guide their core business choices. marketing researchers have adopted a markedly micro-level perspective to understand when. Merrill and Hansen 2009. why and how consumers respond positively to CSR. Simmons and Becker-Olsen 2006). Conversely. extant CSR work in this discipline has focused on single firm/brand contexts (e. Consequently. Sen and Bhattacharya 2008. notably. such as gaining a competitive advantage. Researchers in management (Encompassing strategy and organizational behavior) have typically focused on macro and micro level issues such as the link between CSR and firm financial performance (e.g.g. CSR managers (McKinsey Quarterly 2009) revealed that “strengthening competitive position” is a key impetus for firms to engage in strategic CSR. it is not surprising that a recent large scale study of CFO‟s. even as the debate on CSR has shifted decisively from “whether” to “how” (Smith 2003). finding such a link to. and take care of their bodies and minds. has greatly boosted the popularity and sales of Dove products (Cone and Darigan 2010). Sen and Bhattacharya 2001).

(3) bargaining power of costumers. (2) bargaining power of suppliers.” They demonstrate its use of technology as the linchpin for solutions for smart traffic. Competitiveness at a firm level is defined or limited by five forces of competition. some of the key determinants to firm competitiveness center on issues such as brand equity. as financial performance or firm value may not automatically imply long-term competitiveness (McWilliams and Siegel. to name a few. The bottom line is that there seems to be a connection between CSR and competitiveness. but the nature of the relationship is unclear. Porter and Kramer. Thus. Van De Ven and Jeurissen. where the firm would reduce costs to be price competitive. 2006.One example of a corporate pursuing this approach is Coca-Cola. (b) differentiation. 2001. where the firm would focus on differentiating from competitors on product and/or services and (c) focus strategies. such as Google. the few that do not have specific CSR strategies. reputation for innovation. The main important ingredient in Coca-Cola is water. where the company would focus on specific products and/or services in which it enjoys a competitive advantage. An example in the hi-tech industry is IBM. Coca-cola is working on making clean water available to the communities it serves through partnerships with organizations such as the WWF. 2005). . namely (1) threat of new entrants. IBM the computer giant links its business model and do-good efforts by its promised “to build a smarter planet. human rights and sustainability values are deeply embedded in the core identity of the organization and are therefore integrated in most business processes Competitiveness by adopting three possible strategies: (a) cost leadership. and that these issues are strongly influenced by CSR. On the other hand. smart food and health care to smart energy and infrastructure.(4) threat of substitute products and services and (5) strength of the firm against current competitors. US Agency for International Development and the Gates Foundation. argue that CSR.

reputation acts as a fundamental driver to implement CSR as it is currently an accepted and valued intangible asset (Schnietz and Epstein. risks. 1984. That is. (b) stakeholder management and (3) accountability. 2001. Finally. Valor.. . so that they have the resources to understand. adopting a CSR strategy has an impact on identity and branding. standardized or quantified. 1987. 2000). potential for partnerships. through aspects such as management adaptability. none of these methods include explicit or direct measures of CSR.Mintzberg suggested companies should aim at building institutional capacities and competencies. 2005). Freeman. Pruzan. All valuations included an in-depth qualitative analysis of intangibles. but it is nevertheless very much considered as a transversal issues specifically in term so f non-tangible issues such as corporate reputation. 1993). 1998. governance. strategy or government actions among others. CSR is not considered a specific topic of evaluation by financial analysts. That is. an immediate anticipating stock market behavior of listed companies or for strategic reflection and planning (Copeland et al. brand equity and internal and external relationships We propose that image and reputation make the connection between CSR and competitiveness through three management processes: (a) strategy. improves the understanding of the complexity of the competitive environment and strengthens relationships with key stakeholders through stakeholder management (Donaldson and Preston. rather than on objective ratios and measurement not made explicit. These measurements or valuation so fin tangibles indirectly accounted for some CSR issues. fore-casts. confront and respond to unexpected changes in the market and the context. regardless of whether the valuation is carried out for buying or selling operations. and improves the transparency of the organization through accountability management processes (Elkington. Regard. 1995. nor does it have accepted indicators across different analysts. Company valuation is how the market currently tries to measure and define the competitiveness of a given company. 2005) as well as one of the key issues in risk management (Van De Ven and Jeurissen. surprisingly a significant portion of valuations and recommendation seems to be based on the opinion and expertise of the analyst per-forming the valuation. core competencies. 1993). 2005). Kay. which has a direct impact on competitiveness as it forces sustain-able development in corporate vision through corporate strategy (Mintzberg. Nevertheless.

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