Some observations on CSR and Strategic Management

The notion of CSR and the notion of strategic management of companies are often thought to be contradictory. The former is associated with the aim of generation of profits while the latter idea is often associated with ensuring business earns a ‘social license to operate’. However, emerging literature and practice suggests that a process of integration of the theoretical concepts and practices of CSR with strategic management is occurring. This paper describes some of the evidence for this so-called ‘theoretical synthesis of economics and ethics’ (Windsor). The first part of the paper starts with a description of commonly-used definitions of CSR and highlights critical differences. It continues by describing how aspects of CSR and strategic management are in some ways becoming more integrated at the organisational, strategy-setting and business management level at some companies. The paper then describes how theoretical approaches to CSR have the potential to become absorbed (and to enleaven) pre-existing strategic management theory. It concludes by giving a warning of potential hazards of incomplete integration of the two theories and practices.