Does CSR influence profit margins?
21-Oct-2010 12:00:00 AM
|Title:||Does CSR influence profit margins?|
|Research group:||Velferd og politikk (Welfare, Policy and Politics)|
|Published by:||John Wiley & Sons, Ltd. and ERP Environment,|
The literature on the business case for Corporate Social Responsibility (CSR) ;has identified possible mechanisms for CSR to increase profits. Other parts of ;the CSR literature argue that any strategy yielding above-average profits will ;be imitated by competitors and profits driven down to industry average; ;consequently, CSR may only be a strategy for achieving average profits. The ;empirical research on the relationship between CSR and profits, consisting ;mostly of quantitative studies, has thus far proved inconclusive and many ;studies are challenged on methodological grounds. This paper presents the ;results of interviews with senior executives of 15 of the largest textile ;companies on the Norwegian market. The aim of the paper is to investigate the ;relationship between CSR and profits while avoiding the most important ;methodological pitfalls of the quantitative research and acknowledging the ;distinction between CSR as a strategy for achieving average profits and as a ;strategy for achieving above-average profits..;;;;;;;;;;;;