Arguments for CSR: Economic Argument

CSR is an argument of economic self-interest for businesses. CSR adds value because it allows companies to reflect the needs and concerns of their various stakeholder groups. By doing so, the firm is more likely to create greater value and, as a result, retain the loyalty of those stakeholders. Simply put, CSR is a way of matching corporate operations with stakeholder values and expectations that are constantly evolving.

Summing the moral and rational arguments for CSR leads to an economic argument. To incorporate CSR into operations offers a potential point of differentiation and competitive market advantage upon which future success can be built, besides avoiding moral, legal, and other sanctions. This perspective argues that social contribution can be profitable and can increase competitive advantage, supporting CSR. In summary, the economic argument contains all the factors explaining why CSR is of strategic importance for businesses today.