Corporate Social Responsibility. Chances, Success Factors and New Challenges of CSR

Abstract

The business of business is business – since the times of Milton Friedman, the general views on the purpose and the cause of companies have undergone significant development. After the shareholder value approach of the last century, both the stakeholder value theory of the early years of this century and the more recent shared value notion introduced the concept of Corporate Social Responsibility (CSR). Based on voluntary engagement by company leaders, reputational incentives and market forces, CSR initiatives have in the long-term proven beneficial to society, the environment and also the companies and their investors. With newly emerging legislative attempts, however, the success model of CSR and its potential for future achievements is at risk. This article aims at setting out why CSR matters, how it matters, and what the path towards sustainable sustainability looks like.