Understanding the Conceptual Evolutionary Path and Theoretical Underpinnings of Corporate Social Responsibility and Corporate Sustainability

Mehrnaz Ashrafi, Gregory M. Magnan, Michelle Adams and Tony R. Walker
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Mehrnaz Ashrafi: School for Resource and Environmental Studies, Dalhousie University, Halifax, NS B3H 4R2, Canada
Gregory M. Magnan: Albers School of Business and Economics, Seattle University, Seattle, WA 98195, USA
Michelle Adams: School for Resource and Environmental Studies, Dalhousie University, Halifax, NS B3H 4R2, Canada
Tony R. Walker: School for Resource and Environmental Studies, Dalhousie University, Halifax, NS B3H 4R2, Canada

Sustainability, 2020, vol. 12, issue 3, 1-17

Abstract: To unlock the potential for corporations to play a more proactive role in sustainable development, it is critical to have a fundamental understanding of the pathways leading to a responsible and sustainable business. This study explores contributions of theories of the firm in explicating why and how integrating corporate social responsibility (CSR) and corporate sustainability (CS) into business strategic decisions and operation processes helps to improve the viability of corporations. The research objective is addressed through a narrative review of relevant literature by following the developmental and evolutionary sequences in business responsibility and sustainability while contemplating the connections between CSR and CS through the lens of the dominant theoretical perspectives underpinning the concepts. The study posits an integrative theoretical framework that offers supports for embedding CSR and CS into a corporate business strategy. It discusses that corporate choice of CSR and CS actions and policies is supported by dual internal and external mechanisms based on resource-based theory and institutional theory. This is to meet the interests and expectations of internal and external stakeholders, the basis upon which stakeholder theory is constructed. Findings from this review corroborate the proposition that the three theories of resource-based, institutional, and stakeholder could be used as the primary approach to explain corporate recognition of the need for CSR and CS, and further build a coherent platform to support corporate choice and adoption of CSR and CS in business strategy.

Keywords: sustainable development; corporate social responsibility (CSR); corporate sustainability (CS); institutional theory; resource-based theory; stakeholder theory (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (30)

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