Information of a neutral party is seen as sincere and that is the purpose of the firm. Another way how customers judge a CSR activity as insincere is when the firm spends more money on communication than on the actual CSR activity. Thus the activity backfires and again leaves the firm with a poor reputation.
CSR activities are not always effective. This is based on the fit between the firm and the cause. This is described as brand/cause fit. A CSR activity with a low brand/cause fit might achieve the same as a high brand/cause fit. However this changes if the consumer is brand consciousness. Than the brand/cause fit needs to be high to achieve its goal. CSR improves reputation and therefore CSR is important for a firm.
Competitive advantage is important for a firm because competitive advantage increases benefits. A firm achieves competitive advantage when the firm acquires or develops a resource or combination of resources that allows it to outperform its competitors. This is seen from the resource-based view. Resources are human, financial, physical, and knowledge factors that provides a firm with the means to perform its business processes. If a resource meets the requirements (resource heterogeneity, ex post limits to competition, imperfect resource mobility, and ex ante limits to competition) than a firm might achieve competitive advantage. Both CSR and reputation can be seen as resources. Reputation is seen as an organizational attribute and that it reflects the extent of how stakeholders see the firm. This might be good or bad. Because of this, reputation can be seen as one of the most important (intangible) resources that a firm can possess. Reputation meets the requirements and therefore reputation can lead to competitive advantage. CSR is not easy to see as a resource, because CSR is difficult to define and therefore difficult and therefore a resource is difficult to describe as a resource. But when CSR influences business operations it can be seen as a resource. If this resource meets the requirements, than a company is also able to gain competitive advantage by means of this resource.
As said before it is difficult to describe CSR as a resource, but still CSR can lead to competitive advantage. If a firm makes good use of CSR to reduce costs, attract and motivate employees, improve corporate reputation or to develop new resources, it can lead to competitive advantage.
Competitive advantage can be directly influenced by CSR or by means of reputation. Since CSR influences reputation a company can benefit from CSR.
Information of a neutral party is seen as sincere and that is the purpose of the firm. Another way how customers judge a CSR activity as insincere is when the firm spends more money on communication than on the actual CSR activity. Thus the activity backfires and again leaves the firm with a poor reputation.CSR activities are not always effective. This is based on the fit between the firm and the cause. This is described as brand/cause fit. A CSR activity with a low brand/cause fit might achieve the same as a high brand/cause fit. However this changes if the consumer is brand consciousness. Than the brand/cause fit needs to be high to achieve its goal. CSR improves reputation and therefore CSR is important for a firm.Competitive advantage is important for a firm because competitive advantage increases benefits. A firm achieves competitive advantage when the firm acquires or develops a resource or combination of resources that allows it to outperform its competitors. This is seen from the resource-based view. Resources are human, financial, physical, and knowledge factors that provides a firm with the means to perform its business processes. If a resource meets the requirements (resource heterogeneity, ex post limits to competition, imperfect resource mobility, and ex ante limits to competition) than a firm might achieve competitive advantage. Both CSR and reputation can be seen as resources. Reputation is seen as an organizational attribute and that it reflects the extent of how stakeholders see the firm. This might be good or bad. Because of this, reputation can be seen as one of the most important (intangible) resources that a firm can possess. Reputation meets the requirements and therefore reputation can lead to competitive advantage. CSR is not easy to see as a resource, because CSR is difficult to define and therefore difficult and therefore a resource is difficult to describe as a resource. But when CSR influences business operations it can be seen as a resource. If this resource meets the requirements, than a company is also able to gain competitive advantage by means of this resource.As said before it is difficult to describe CSR as a resource, but still CSR can lead to competitive advantage. If a firm makes good use of CSR to reduce costs, attract and motivate employees, improve corporate reputation or to develop new resources, it can lead to competitive advantage.Competitive advantage can be directly influenced by CSR or by means of reputation. Since CSR influences reputation a company can benefit from CSR.
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