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

Abstract

PurposeThis 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/approachThis 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.FindingsCSR 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/implicationsThis study has undertaken a holistic examination of important role of CSR and PR capability and their outcomes, namely customer orientation and price premium.Originality/valueUnderstanding 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.