Social Responsibility and Competitive Advantage

Vocabulary and key concepts from the lecture notes on Corporate Social Responsibility (CSR), B Corporations, and impact on competitive advantage.

Corporate Social Responsibility (CSR)

The concept that corporations have a degree of responsibility for their activities and also for the social and environmental implications of their business operations.

Triple Bottom Line

An approach which means that corporations must consider the ‘3Ps’: Profit, People, and Planet.

Brand awareness

In the context of CSR, a sharp brand positioning tool where initiatives are engrained into the brand story and become part of the business.

Certified B Corporations

Businesses that meet the highest standards of verified social and environmental performance, public transparency, and legal accountability to balance profit and purpose.

B Corp Declaration of Interdependence

A set of beliefs envisioning a global economy that uses business as a force for good and creates benefit for all stakeholders, not just shareholders.

59%

The percentage of consumers who consider ‘Trusted brand’ and ‘Health/wellness benefits’ when making a purchasing decision.

57%

The percentage of consumers who consider if a product is ‘Made with fresh ingredients’ or if the ‘Company is eco-friendly’ when making a purchasing decision.

45%

The percentage of consumers who consider if a ‘Company is committed to social value’ when making a purchasing decision.

43%

The percentage of consumers who consider ‘Eco-friendly packaging’ when making a purchasing decision.

41%

The percentage of consumers who consider if a ‘Company is committed to local community’ when making a purchasing decision.

Thank You

A brand noted for effectively using CSR initiatives such as ‘Buy a pair, give a pair’ and ‘Clean water for all’ as part of its branding strategy.

Starbucks

A brand cited as using CSR to elicit trust by being honest about where products come from.

Innocent Drinks

A brand cited as using CSR to elicit trust by Being honest about the environmental impacts of the company’s production.

Positive connection

Created when customers feel they are contributing to the greater good or participating in charitable efforts through their purchases.

The Body Shop

An example of a company known for its CSR efforts, used as inspiration for promoting brands with social responsibility.