If the competitive strategies of multinational companies rely on global brands, corporate social responsibility (CSR) provides insurance against management lapses. The practical need for CSR as brand assurance comes from changing social expectations, prosperity and globalization. Corporate actions that violate social expectations damage, even destroy, brand image among networked actors wealthy enough to buy brand-name products and services. The insurance premiums paid CSR brand of l … Read more »

If the competitive strategies of multinational companies rely on global brands, corporate social responsibility (CSR) provides insurance against management lapses. The practical need for CSR as brand assurance comes from changing social expectations, prosperity and globalization. Corporate actions that violate social expectations damage, even destroy, brand image among networked actors wealthy enough to buy brand-name products and services. The premiums for insurance are CSR brand of leaders who are paid to create a company-wide commitment to CSR as a means to redefine “profit maximization.” By incorporating a stakeholder perspective, management is best suited shareholder returns over a longer period.
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from
David Chandler,
William B. Werther Jr.
Source: Business Horizons
8 pages.
Publication Date: Jul 15, in 2005. Prod #: BH128-PDF-ENG
Strategic corporate social responsibility as global brand insurance HBR case solution