The important role of corporate social responsibility capabilities in improving sustainable competitive advantage

Eun-Mi Lee, Hyun Jung Lee, Jae-Hyeon Pae and Seong-Yeon Park

Social Responsibility Journal, 2016, vol. 12, issue 4, 642-653

Abstract: Purpose - This study examines the effect of corporate social responsibility (CSR) capabilities on corporate association and, consequently, customer orientation and price premium, which are key to competitive advantage. Design/methodology/approach - This study adapts survey instrument targeting employees of a Korean firm. A total of 168 usable questionnaires were collected from seven Korean firms that were conducting CSR and public relations (PR) activities. Findings - CSR and PR capability induce positive CSR and corporate ability (CA) associations, which improve customer orientation and increase price premium. The results of our empirical study indicate that a company should consider both CSR and PR capabilities to enhance its employees’ positive attitude to its CSR activities and CA association. Research limitations/implications - This study has undertaken a holistic examination of important role of CSR and PR capability and their outcomes, namely customer orientation and price premium. Originality/value - Understanding of CSR capabilities in terms of competitive advantage is imperative to the establishment of strategic CSR initiatives. This study attempts to answer whether corporate capabilities for social responsiveness improve a company’s competitive advantage.

Keywords: Price premium; Customer orientation; CSR capability; CA association; CSR association; PR capability (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:eme:srjpps:v:12:y:2016:i:4:p:642-653

DOI: 10.1108/SRJ-11-2015-0163

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