Corporate Social Responsibility and Competitiveness: Empirical Results and Future Challenges

Torsti Loikkanen, Kirsi Hyytinen

Research output: Chapter in Book/Report/Conference proceedingChapter or book articleProfessional

Abstract

Globalisation has boosted the demand for a more transparent accounting of corporate responsibilities encompassing social, economic and environmental dimensions. Proactive companies search for competitive advantage in markets by differentiating themselves from competitors. One way to do this is to engage in corporate social responsibility. This trend raises the issues of whether any connection between corporate social responsibility and competitiveness exists or even whether engagement in corporate social responsibility contributes to competitiveness. On the basis of an empirical study this article discusses the connections between corporate social responsibility and competitiveness of Finnish firms. The study by VTT and TKK Dipoli explored this connection from the following angles: first, how companies take into account corporate social responsibility requirements of stakeholders, second, how corporate social responsibility requirements guide business activities and decision making of companies and, third, whether and how socially responsible actions enhance firms’ competitiveness. The empirical study consists of case studies in companies identified to be leaders in corporate social responsibility and of a company survey with 150 respondents. As with several other studies, this study also provides support to the existence of a positive connection between corporate social responsibility and competitiveness. The chapter discusses the results of the study and identifies implications, recommendations and proposals for further research on corporate social responsibility and environmental management accounting.
Original languageEnglish
Title of host publicationEnvironmental Management Accounting and Supply Chain Management
EditorsRoger L. Burritt, Stefan Schaltegger, Martin Bennet, Tuula Pohjola, Maria Csutora
PublisherSpringer
Chapter7
Pages151-170
ISBN (Electronic)978-94-007-1390-1
ISBN (Print)978-94-007-1389-5, 978-94-007-3620-7
DOIs
Publication statusPublished - 2011
MoE publication typeD2 Article in professional manuals or guides or professional information systems or text book material

Publication series

SeriesEco-Efficiency in Industry and Science
Volume27

Fingerprint

Corporate Social Responsibility
Competitiveness
Empirical results
Empirical study
Competitors
Corporate responsibility
Finnish firms
Environmental management accounting
Encompassing
Globalization
Decision making
Competitive advantage
Business activity
Stakeholders

Keywords

  • sustainable development
  • corporate social responsibility
  • accounting
  • transparency
  • competitive advantage
  • indicators

Cite this

Loikkanen, T., & Hyytinen, K. (2011). Corporate Social Responsibility and Competitiveness: Empirical Results and Future Challenges. In R. L. Burritt, S. Schaltegger, M. Bennet, T. Pohjola, & M. Csutora (Eds.), Environmental Management Accounting and Supply Chain Management (pp. 151-170). Springer. Eco-Efficiency in Industry and Science, Vol.. 27 https://doi.org/10.1007/978-94-007-1390-1_7
Loikkanen, Torsti ; Hyytinen, Kirsi. / Corporate Social Responsibility and Competitiveness : Empirical Results and Future Challenges. Environmental Management Accounting and Supply Chain Management. editor / Roger L. Burritt ; Stefan Schaltegger ; Martin Bennet ; Tuula Pohjola ; Maria Csutora. Springer, 2011. pp. 151-170 (Eco-Efficiency in Industry and Science, Vol. 27).
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Loikkanen, T & Hyytinen, K 2011, Corporate Social Responsibility and Competitiveness: Empirical Results and Future Challenges. in RL Burritt, S Schaltegger, M Bennet, T Pohjola & M Csutora (eds), Environmental Management Accounting and Supply Chain Management. Springer, Eco-Efficiency in Industry and Science, vol. 27, pp. 151-170. https://doi.org/10.1007/978-94-007-1390-1_7

Corporate Social Responsibility and Competitiveness : Empirical Results and Future Challenges. / Loikkanen, Torsti; Hyytinen, Kirsi.

Environmental Management Accounting and Supply Chain Management. ed. / Roger L. Burritt; Stefan Schaltegger; Martin Bennet; Tuula Pohjola; Maria Csutora. Springer, 2011. p. 151-170 (Eco-Efficiency in Industry and Science, Vol. 27).

Research output: Chapter in Book/Report/Conference proceedingChapter or book articleProfessional

TY - CHAP

T1 - Corporate Social Responsibility and Competitiveness

T2 - Empirical Results and Future Challenges

AU - Loikkanen, Torsti

AU - Hyytinen, Kirsi

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Y1 - 2011

N2 - Globalisation has boosted the demand for a more transparent accounting of corporate responsibilities encompassing social, economic and environmental dimensions. Proactive companies search for competitive advantage in markets by differentiating themselves from competitors. One way to do this is to engage in corporate social responsibility. This trend raises the issues of whether any connection between corporate social responsibility and competitiveness exists or even whether engagement in corporate social responsibility contributes to competitiveness. On the basis of an empirical study this article discusses the connections between corporate social responsibility and competitiveness of Finnish firms. The study by VTT and TKK Dipoli explored this connection from the following angles: first, how companies take into account corporate social responsibility requirements of stakeholders, second, how corporate social responsibility requirements guide business activities and decision making of companies and, third, whether and how socially responsible actions enhance firms’ competitiveness. The empirical study consists of case studies in companies identified to be leaders in corporate social responsibility and of a company survey with 150 respondents. As with several other studies, this study also provides support to the existence of a positive connection between corporate social responsibility and competitiveness. The chapter discusses the results of the study and identifies implications, recommendations and proposals for further research on corporate social responsibility and environmental management accounting.

AB - Globalisation has boosted the demand for a more transparent accounting of corporate responsibilities encompassing social, economic and environmental dimensions. Proactive companies search for competitive advantage in markets by differentiating themselves from competitors. One way to do this is to engage in corporate social responsibility. This trend raises the issues of whether any connection between corporate social responsibility and competitiveness exists or even whether engagement in corporate social responsibility contributes to competitiveness. On the basis of an empirical study this article discusses the connections between corporate social responsibility and competitiveness of Finnish firms. The study by VTT and TKK Dipoli explored this connection from the following angles: first, how companies take into account corporate social responsibility requirements of stakeholders, second, how corporate social responsibility requirements guide business activities and decision making of companies and, third, whether and how socially responsible actions enhance firms’ competitiveness. The empirical study consists of case studies in companies identified to be leaders in corporate social responsibility and of a company survey with 150 respondents. As with several other studies, this study also provides support to the existence of a positive connection between corporate social responsibility and competitiveness. The chapter discusses the results of the study and identifies implications, recommendations and proposals for further research on corporate social responsibility and environmental management accounting.

KW - sustainable development

KW - corporate social responsibility

KW - accounting

KW - transparency

KW - competitive advantage

KW - indicators

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DO - 10.1007/978-94-007-1390-1_7

M3 - Chapter or book article

SN - 978-94-007-1389-5

SN - 978-94-007-3620-7

T3 - Eco-Efficiency in Industry and Science

SP - 151

EP - 170

BT - Environmental Management Accounting and Supply Chain Management

A2 - Burritt, Roger L.

A2 - Schaltegger, Stefan

A2 - Bennet, Martin

A2 - Pohjola, Tuula

A2 - Csutora, Maria

PB - Springer

ER -

Loikkanen T, Hyytinen K. Corporate Social Responsibility and Competitiveness: Empirical Results and Future Challenges. In Burritt RL, Schaltegger S, Bennet M, Pohjola T, Csutora M, editors, Environmental Management Accounting and Supply Chain Management. Springer. 2011. p. 151-170. (Eco-Efficiency in Industry and Science, Vol. 27). https://doi.org/10.1007/978-94-007-1390-1_7