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A critical literature review exploring whether CSR (Corporate Social Responsibility)
increases profitability?
McWilliams and Siegal (2001, p
...

Many Academics, Consultants and Corporate Executive’s “have created, supported or
criticized related concepts such as sustainable development, corporate citizenship,
sustainable entrepreneurship, Triple Bottom Line, business ethics, and corporate social
responsibility (Van Marrewijk, 2003, p
...
Carroll (1999, p
...
Since 1999 the amount of businesses including CSR reports has increased
rapidly, with organizations realizing the importance of keeping pace with global movements
...
S
...
The literature that will be covered in
this review will be grouped by CarrolI’s (1974:1991) four different strategies of CSR,
including economic, legal, philanthropic and ethical strategies
...
g
...

The Link Between Competitive Advantage and CSR (Economic)
Sustainable lifestyle is a way of living in balance with our natural environment
...
62)
...
Porter (2006, p
...
Firms affect numerous groups and individuals, both internally and
externally, engendering a realm of responsibility far beyond the positive economic returns
demanded by shareholders (Smith, 2007, p
...
Therefore, “to advance in CSR, we must
create an understanding of the interrelationship between a corporation and society while
anchoring it in the strategies and activities of specific companies (Porter, Kramer, 2006,
p
...
This suggests that the research conducted by Porter, Kramer and Smith all imply that
integrating business and society is the key factor when selling CSR
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213)
...
It can be concluded that the customer wants
to preserve the environment through their purchasing choices
...

However, integrating business and social needs takes more than just good intentions and a
high performing organisation
...
According to Wilson (1987, p
...
In these areas,
jobholders are few and middle-class institutions are absent
...
Furthermore, for those who are part of a lower socioeconomic class, how are they expected to afford certain products when they may be
unemployed? Authors such as Smith (2007), Quairel-Lanoizelée (2011) suggest that it is not

necessary to integrate all forms of society
...
Therefore, this
research would suggest that not all forms of society can be integrated and that organizations
must gather information about their target market before creating a relationship
...
In terms of further research, it would provide
clear evidence if it was possible to compare a change in a company’s profit, before and after
it has changed its strategy to become more socially responsible
...

Public relations can improve relationships with constituents and improve an organizations
reputation
...
44)
...

Philanthropy
In its most general sense, philanthropy encompasses behaviors and actions that are
manifestations of a voluntary commitment to the well-being of others (Schuyt, 2010, p
...

Scholars and practitioners alike indicate a movement in corporate philanthropy toward
“strategic” giving, for example, giving that improves the firm's strategic position (ultimately
the “bottom line”) while it benefits the recipient of the philanthropic act
...
He combines these two
motivations, arguing that corporations align their promotional activities i
...
the dissemination
of a corporate image to a specific clientele (e
...
suppliers, consumers, employees and
competitors (Moir, Taffler, 2004, p
...
This research presents the findings of a survey of
corporate ‘giving’ managers of U
...
firms that have had an established ‘giving’ program of at
least 5 years, with annual ‘giving’ totaling at least $200,000 each year
...
169)
...

On the other hand, Michael E
...
Kramer (2002, p
...
Executives increasingly see themselves in a no-win situation,
caught between critics demanding ever higher levels of ‘corporate social responsibility’ and
investors applying relentless pressure to maximize short term profits
...
5)
...
However, there
is very little evidence from other authors that they would agree with this opinion
...

Furthermore, the journal is based on a small amount of secondary research and individual
analysis, again questioning the validity of the journal
...
The ethics scandals in the early 2000s (e
...
, Enron, Worldcom, Adelphia, Tyco)
reawakened the need for attention to business ethics
...


Do the ends justify the means? (Ethical)
Research involving human subjects has anything but a glorious legacy
...
387)
...
Although
‘informed consent’ seemed to have been obtained, it is clear that the intervention ‘chili
consumption’ does not have any potential benefit (Balasubramanian, 2008, p
...

Pharmaceutical companies find it increasingly difficult these days to recruit enough patients
to test the drugs coming out of their laboratories
...
2)
...
53)
...
Several published reports, taken together, thus confirm that
clinical trials are taking a toll on human life in India and raise some disturbing ethical
questions (Chattopadhyay, 2012)
...
There is a small number of
academics who believe that the media is creating a bad portrayal of clinical testing, such as
Drennan (2001, p
...
However, many
researchers accept that clinical testing in places such as India and Russia is being
conducted in an unethical manor
...
11) discovered that in
January 2004 when Pfizer pleaded guilty to marketing gabapentin (Neurontin) for
unapproved uses its lawyers assured the United States Attorney’s Office that this practice
would stop
...
Highlighting that companies will act in
unethical ways in whichever way possible in order to maximize their profits
...
As it will massively increase the costs of the testing, reducing
the profit margin, although the testing will be conducted in an ethical manner
...

Although, where does the metaphorical line have to be drawn? Severe consequences need
to be put in place for those companies who are not only being unethical but unlawful as well
...
As a point of departure, government regulation may be formal, binding
law, or it may be recommendations that are intended to have a guiding effect but have no
legal standing (Buhmann, 2006, p
...
As larger companies are under scrutiny from the
government and pressure from other social groups (Cowen et al
...
, 1995; Adams et
al
...
According to Companies Act, Section 135, every company having
in every financial year the net worth of `5000 million or more, or a turnover of `10,000 million

or more, or a net profit of `50 million or more, shall ensure that the company spends at least
2 per cent of the average net profits of the company made during the three immediately
preceding financial years in pursuance of its CSR policy
...
63)
...
From the research
carried out there is not sufficient evidence to suggest that global laws are doing enough to
prevent corporation’s unlawful behavior
...
Resulting it accidents such as the
Bhopal disaster taking place, where “the release of methyl isocyanate (MIC) gas killed some
3000 people that night
...
This evidence would closely support the ethical literature
which suggests that corporations are still using illegal and unethical clinical trials in order to
maximize profits
...

In conclusion, the literature on Carroll’s four different strategies of CSR can be very closely
linked throughout the review
...
Although Porter and Kramer carry out very little primary research, their work is
supported by many other authors and academics, highlighting the reliability and importance
of their work
...
Even though, some authors would argue against this, such as the
legal and ethical strategies which show that CSR just increases costs and that illegal
activities which competitors are partaking in are much cheaper
...
As
from the literature gathered it would seem as if corporations only focus is the ‘bottom line’
...
” (Ferrero, MichaelHoffman, McNulty, 2014)
...
There is very little research on the legal factors affecting
SME’s and how the law is implemented on them as a smaller business
...
If there was any further research to
take place, it would be necessary to research how SME’s are affected by CSR, as well as
investigating whether it has the same impact as it does on large corporations
...
, Chinta, R
...
and Burns, D
...
Ethics & Behavior [online]
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103-117
...

Balasubramanian, S
...
World Journal of
Surgery [online]
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494-495
...

Bennett, P
...
Ethics and CSR
...

Available from:
https://blackboard
...
ac
...
jsp?course_id=_2533
29_1&content_id=_4581417_1 [Accessed 06 April 2016]
...
(2014) Clinical trials in India: Way forward
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5 (2), p
...
[Accessed 28 March 2016]
...
(2006) Corporate social responsibility: what role for law? some aspects of law
and csr
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6 (2), pp
...
[Accessed 05 April 2016]
...
(2012) Guinea pigs in human form: clinical trials in unethical
settings
...
379 (9830), p
...
[Accessed 29 March 2016]
...
, Green, G
...
(1998) Social isolation of the urban poor: race, class,
and neighborhood effects on social resources
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39 (1),
pp
...
[Accessed 03 April 2016]
...
and Kanbur, R
...
The Journal of
Economic Inequality [online]
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1-21
...

Drennan, K
...
Drug Discovery Today [online]
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597-599
...

Dupire, M
...
(2016) CSR Strategies in Response to Competitive
Pressures
...
(N/A), p
...
[Accessed 04 April 2016]
...
, Michael Hoffman, W
...
(2014) Must Milton Friedman Embrace
Stakeholder Theory?
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119 (1), pp
...
[Accessed
04 April 2016]
...
(2014) CSR: focus on employees
...
Annals of the University of
Oradea : Economic Science
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11-21
...

Giannarakis, G
...
International Journal of Law and Management [online]
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393-416
...

Gjolberg, M
...
Scandinavian Journal of Management [online]
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10-22
...

Hagan, L
...
American Journal of Business Education[online]
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43-48
...

Jhunjhunwala, S
...
Corporate
Governance [online]
...
211-219
...

Karhu, J
...
Review of Market Integration[online]
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62-74
...

Lexchin, J
...
Journal of Pharmaceutical Policy and Practice [online]
...
11
...

Maita, R
...
(2007) Clinical trials in India
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56 (1), pp
...
[Accessed 29 March 2016]
...
, Siegal, D
...
(2006) Corporate Social Responsibility:Strategic
Implications
...
43 (1), pp
...
[Accessed 29 March
2016]
...
and Kramer, M
...
Harvard Business Review [online]
...
56-68
...

Porter, M
...
(2006) The Link Between Competitive Advantage of and
Corporate Social Responsibility
...
, pp
...

Moir, L
...
(2004) Does corporate philanthropy exist?: Business Giving to the
Arts in the U
...
Journal of Business Ethics[online]
...
149-161
...

Nardini, C
...
Ecancermedicalscience [online]
...
387
...

Quinn, F
...
S
...
Workiva [Blog]
...
Available from: https://www
...
com/blog/top-4-reasons-uscompanies-report-csr
Saiia, D
...
, Carroll, A
...
and Buchholtz, A
...
, (2003)
...
Business & Society, 42(2), pp
...

Smith, A
...
Business Strategy Series [online]
...
186-195
...

Van Marrewijk, M
...
Journal of Business Ethics[online]
...
95-105
...

Yang, M
...
and Amyotte, P
...
Process Safety and Environmental Protection[online]
...
70-79
...




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