Non-Market Strategies: Corporate Social Responsibility and Corporate Political Activity

Running head: LITERATURE REVIEW
Literature Review
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1LITERATURE REVIEW
The non-market strategies can be taken recourse to by a firm that can ensure its
competitive advantage in the industry. Inter along with intra firm trust within the strategic
alliance can help in the expansion of the firm and ensure its profitability. The synergy
between the two elements- corporate social responsibility (CSR) along with corporate
political activity (CPA) can improve the organizational performance of a firm (Liedong et al.
2015).
The government can help in maintaining the environment that can facilitate the
process of economic exchange of a firm and hence it is important for the firms to build trust
with the government. The non-market environment helps in constituting general context in
which the firms operate (Schwartz 2017). Corporate Political Activity can help the firms in
influencing the government policy in a way that is favourable and it includes different kinds
of tactics like lobbying, political directorship and political action committee. These kinds of
tactic can help in targeting the elected officials along with politicians. Corporate Social
Responsibility is indicative of the social along with environmental obligation of a firm that
can help it to target the general public.
Corporate Social Responsibility can help in protecting the reputation of a corporation
and it can increase the visibility of a company and confer it with legitimacy. The visibility
that one gains from CSR can help it in establishing contact with polity and it can help them in
gaining access to the process of decision-making (Tai and Chuang 2014). The good
reputation that a firm can get with the help of CSR can help in unlocking doors along that of
policy power. CSR can help in creating access to polity but it cannot influence the policy
outcome.
The firms knowing the policy issues will be in a better position that can help them in
presenting accounts that can be accepted by the politicians. The politicians can be appointed