Question

Elaborate on the resource-based view to CSR and give specific example (detailed please)

Answer 1

From a resource-based viewpoint CSR is seen as providing, or both, internal or external benefits. Investments in socially responsible practices may have internal benefits by helping a organization build new tools and skills relevant to know-how and organizational culture in particular. In addition, engaging in activities and disclosure of social responsibility has important repercussions for the development or loss of vital intangible resources, including those associated with employees.

CSR's external advantages have to do with its effect on corporate credibility. Corporate reputation can be understood as a fundamental intangible resource that can be created or depleted as a result of the decisions to engage in and disclose social responsibility activities or not. Companies with a good reputation for social responsibility may improve ties with outside actors. They can also recruit better employees or increase the enthusiasm, morale, dedication and loyalty of current employees towards the organization.

For example, good relationships with their stakeholders are likely to result in improved financial returns, as these good relationships would be instrumental in the creation of valuable intangible assets (resources and capacities).