CORPORATE

SOCIAL
RESPONSIBILITY
AS A COMPANY
VALUE DRIVER
 OBJECTIVES

Interaction Participation of everyone’s ideas and experience are

highly encourage

To understand Understanding the importance of CSR in the organization

To know Knowing the relation of CSR in the financial performance

of the organization
 In this report the relevance of CSR practices and initiatives for
companies will be discussed

CSR & Business

Value Driver Model Performance

CSR and CSR as Value creator

Companies Competitiveness for consumer
 01
key metrics in accessing the
financial impact of their CSR
strategies

VALUE 02
DRIVER first step on the path toward
deepening investor interest
MODEL in sustainability as a source
of business value

03
can be used as motivational
factor to increase their financial
performance
Sustainability-advantage growth (S/G)
measuring a company’s revenue volume
and growth rate in comparison to their
predecessors and/or competitors

Sustainability-driven productivity (S/P)

measuring the financial impact on a
Key factors in company
company’s cost structure
performance

Sustainability-related risk management (S/R)

measuring performance over time,
paying a special attention to the risk
assessment.
The purpose of this model is to
offer a means of simplifying and
highlighting such key impacts
and to make it easier for a wide
spectrum of observers to
evaluate sustainability as a
noteworthy source of value
creation
 Sustainability-advantage growth (S/G)

Creating and developing

Implementing a long-term
strategy and plan, along with the
required investments, to deliver
sustainability-advantaged
growth
innovative sustainable products
and services to meet customer
needs while diminishing the
negative social and
environmental impact,

Sales growth on the basis of

brand reputation Expanding market share
01 Efficiency of operations

Human resource Sustainability-driven

02 management
productivity (S/P)

Enhancement of product
03 and service value
 01
Operational and
regulatory risk
related to day-to-day business operations, licencing,
environmental impact (pollution and toxic emissions), operating
standards.

Sustainability- 02
Supply chain risk
related risk related to supply of reliable, environmentally sound produce and

management (S/R) services according to company codes and international

standards.

03
Reputational risk
negative media coverage, negative legal judgements, etc., that
can be avoided by proactive policies and corporate
communication
 01
Researchers advocating the negative relationship state that
implementation costs of CSR are too high compared with the
results obtained (Oh & Park, 2015; Lopez et al., 2007)

CSR and 02
Other group of authors argues that the relationship between CSR
and company performance is rather insignificant on the basis
Business that it is not clear whether this relationship exists at all (Curran
& Moran, 2007; Garcia-Castro et al., 2010)

Performance 03
Majority of the researchers define that the adoption of CSR
activities carried out by companies allows them to increase
their level of performance (Mishra & Suar, 2010; Doh et al.,
2010; Callan & Thomas, 2009)
 There is a top down relation –
Business performance must meet or
exceed the expectations of the
leadership

Our team The bottom-up relation shows the

management if expectations are met
and gives vital information about
necessary adjustments to the
business processes that need to be
made
The EFQM model provides a
framework for the measurement
of CSR activities and their Our company
influence on Business
Performance,

EFQM is an abbreviation of the non-profit organization

European Foundation for Quality Management
 Theoretical Model of CSP-CFP

Firms investment in socially responsible behaviour, In fact, Margolis and Walsh (2003, p. 277)
such as pollution reduction efforts or energy-saving assert that, based on the 127 studies they
technologies, has a measurable effect on its financial review, a positive association is apparent with
performance. very little evidence of a negative association’

In so doing, practices aimed at energy conservation, pollution

abatement, support for labor rights, and the like, can be
rewarded by improved worker productivity, an enhanced
corporate reputation, and a larger consumer base(Freeman,
1984)
Is a measure of firm i’s financial CFP
performance i

CSP
Is a measure of firm i’s socially
responsible performance
i
Theoretical Model of
CSP-CFP
Is a vector of control variables, which X
includes firm i’s financial characteristics,
CFPi = f(CSPi, X, Z)
is a vector of variables that identify Z
the industry in which firm i operates.
CFPit is a measure of firm i’s financial performance CFP
in time period t, i
CSPit-1 is a measure of firm i’s socially responsible
performance in time period t-1,

Sizeit captures firm i’s corporate size in time period CSP

i
Capitalit is a measure of firm i’s capital spending in
time period t
Theoretical Model of
Riskit is a measure of firm i’s risk posture in time CSP-CFP
period t X

RDit is a measure of firm i’s investment in R & D in

time period t
CFPit = f(CSPit-1, Sizeit, Capitalit,
Riskit, RDit, Advit, Zit),
Advit measures firm i’s spending on advertising in
time period t

Zit is a vector of variables capturing the industry in

which firm i operates in time period t.
 01 Brand reputation

02 Efficient operation

CSR and
Company 03 Improved financial performance

competitive 04 Increase in sales and consumer loyalty

advantage
Impact of CSR on the competitive
advantage (Ljuboevic et al., 2012).
05 Attract and Retain high-quality employee
 01 The quantity and quality of available
business inputs;

CSR and 02
Policies that protect intellectual property,
ensure transparency, safeguard against
corruption, and encourage investment;
Company
03 The size and particularity of the local
competitive demand

advantage
Competitive context
(Porter and Kramer 2006)
04 The support industries and infrastructure
CSR and company’s competitive advantage
01 Consumption Values

Consumer satisfaction CSR as value

02
creator for consumer

03 Consumer loyalty
 Consumption values
Emotional values
- emotions can be described as feelings or emotional
reactions against components like “situations,
products, advertisements and brands”
(Hawkins et al.,1992:19)
Social values
-“The benefit that is perceived and obtained in
relation to one social group or several social
groups”.

Functional values
-The benefits related to the performance, reliability,
soundness and price of a product are considered for functional
value (Xiao and Kim,2009:612)
Consumer satisfaction and consumer
loyalty
 A satisfied consumer will provide Social activities of the company
good references that can encourage create an additional value, hence
other customers to choose this increase the consumer
particular company over any other satisfaction and creates the basis
company for loyalty
(Irshad et al., 2017).
Thank you for listening