Developing CSR Giving as a Dynamic Capability for Salient Stakeholder Management

Abstract

In this paper, we draw upon the emerging view of strategic cognition and issue salience and show that CSR giving has evolved into more than an altruistic response to being asked for support, to one which is embedded in the strategic frames of management and which supports organizational identity. The managerial action as a result of such strategic cognition suggests that modern organizations are seeking to develop CSR giving processes that provide them with a competitive advantage. We draw on the resource-based view of organizations and the VRIO framework to provide the theoretical foundations for our argument that CSR implementation in the form of corporate giving to charities can be developed as a dynamic capability. This can provide a competitive advantage by allowing organizations to manage key stakeholder relationships (external and internal) more effectively with benefits which could lead to increased organizational productivity and the ability to execute strategy more effectively. We interview CSR implementation managers from large organizations in Australia and find that the CSR giving process in many firms is evolving into a more sophisticated and strategically motivated process with expectations of a return. Central to this evolution is the appointment of a CSR implementation manager who acts as a boundary spanner between the organization and its key stakeholders. We posit that this corporate investment in their role and supporting structures can lead to the better management of stakeholders by organizations through the dynamic capability of the CSR giving process. We develop a table of best practise to help guide managers entering this sphere. Abstract In this paper, we draw upon the emerging view of strategic cognition and issue salience and show that CSR giving has evolved into more than an altruistic response to being asked for support, to one which is embedded in the strategic frames of management and which supports organizational identity. The managerial action as a result of such strategic cognition suggests that modern organizations are seeking to develop CSR giving processes that provide them with a competitive advantage. We draw on the resourcebased view of organizations and the VRIO framework to provide the theoretical foundations for our argument that CSR implementation in the form of corporate giving to charities can be developed as a dynamic capability. This can provide a competitive advantage by allowing organizations to manage key stakeholder relationships (external and internal) more effectively with benefits which could lead to increased organizational productivity and the ability to execute strategy more effectively. We interview CSR implementation managers from large organizations in Australia and find that the CSR giving process in many firms is evolving into a more sophisticated and strategically motivated process with expectations of a return. Central to this evolution is the appointment of a CSR implementation manager who acts as a boundary spanner between the organizati...

Competition and Cooperation in Economics and Business

“…Kiessling et al (2015) explain that although many companies conducted CSR activities, it must be recognised that such activities are driven directly or indirectly by the stakeholders. The stakeholders might have different perceptions towards the reasons why a company is engaged in CSR activities (Ellen et al, 2006;Feldman & Vasquez-Parraga, 2013;Cantrell et al, 2014). The results of this study are consistent with the findings that Health CSR activities will have positive and negative motives as perceived by customers.…”

“…The stakeholders might have different perceptions of the reasons why a company is engaged in CSR activities (Ellen et al, 2006;Bronn & Vidaver-Cohen, 2009;Feldman & VasquezParraga, 2013;Cantrell et al, 2014). The results of this study are consistent with the findings that Health CSR activities have positive and negative motives as perceived by customers, namely Moral, Stakeholder, and Business Motives.…”

“…Cantrell et al (2014) explain about how stakeholder theory aids in the understanding of the influences and influencers on the organisation, and conversely it assists in understanding how the actions of the organisation can affect different stakeholders. When CSR is implemented as social activities of the firm, it could be perceived differently by the stakeholders, because their involvement and attention to those activities are different as the result of their perception of the firm's motivation to conduct the CSR.…”

“…The stakeholders might have different perceptions of the reasons why a company is engaged in CSR activities (Ellen et al, 2006;Bronn & VidaverCohen, 2009;Feldman & Vasquez-Parraga, 2013;Cantrell et al, 2014). In terms of positive motives in the attribution process of the consumers' reactions to CSR action, consumers are likely to accept attributions because they consider companies to be acting with sincere and benevolent intentions, care to society, and tend to view CSR activities as being derived from the companies' moral behaviour (Vlachos et al, 2009).…”

Exploring the Motive and Effect between Altruistic and Strategic Corporate Giving: An Experimental Design Study

“…Henderson and Malani (2009) also assume the potential of altruistic market when there is comparative strategic advantage over simply the government or nonprofit causes. Cantrell et al (2015) further argue that if firms can well manage key internal and external stakeholder relationships, CSR-giving can be developed as a more strategically driven process with benefits leading to increased organizational productivity. It appears that corporate giving has evolved into more than an altruistic action to one which is embedded in the strategic frame of management.…”