Question

Discuss how CSR and sustainable development initiatives yield competitive advantage for corporations. Discuss them with suitable examples.

Answer 1

Ans- CSR and she sustainable development initiatives are yielding competitive advantage for corporation in many ways like:

• With CSR initiatives companies are able to meet moral obligations towards society, beyond industry laws and regulations. This creates a good image of the organization among society. This goodwill i.e. a intangible asset of the company is a source of competitive advantage.

• Companies which are active in CSR activities share strong bond with governments, employees, consumers, stakeholders. This build goodwill of the organization among them by improving image and reputation.

• In current scenario, companies are focusing on green supply chain, less use of paper and zero carbon emission keeping in view of sustainable development. For e.g. Recycling program of used personal computer, laptops of Microsoft is an example of this. This created a source of competitive advantage for Microsoft.

• Adoption of green sourcing by the manufacturer of FMCG products for sustainable development, proved a source of competitive advantage. For e.g. Colgate used organic products in production of toothpaste. This created a image among the people that Colgate used herbal material and this is beneficial for our health, and become a source of competitive advantage.

So, in now a days by this way by taking CSR and sustainable development initiatives companies are gaining competitive advantage.