Strategic Management Report: CSR, Unilever Case Study, and Analysis

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Running head: STRATEGIC MANAGEMENT
Strategic Management
Name of the Student
Name of the University
Author’s Note:
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Executive Summary
The main aim of this report is to understand about the entire concept of strategic management.
The report is divided into two parts. The first part deals with the concepts of strategies
management and out of them, corporate social responsibility is being selected. Different
attributes and aspects of this CSR is being demonstrated in the first part of the report. The second
part of the report is to highlight a real life case study for corporate social responsibility. The case
study of Unilever is being represented here with relevant details. The organizational approach of
corporate social responsibility and how they have eradicated the issues faced by them with CSR
are well described in the report.
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Table of Contents
1. Introduction..................................................................................................................................3
2. Discussion....................................................................................................................................3
Part 1: Corporate Social Responsibility.......................................................................................3
2.1 Selection and Description of a Suitable Concept or Model in Strategic Management.....3
2.2 Critical Examination of the Concept of Corporate Social Responsibility with Proper
Arguments and Concept Evaluation........................................................................................4
2.3 Explanation of the Process of Concept fitting in Present Situation with other Concepts
of Strategic Management with Discussion of its Relevance to the Business Challenges.......7
Part 2: Real Life Case Study......................................................................................................12
3. Conclusion.................................................................................................................................17
References......................................................................................................................................18
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1. Introduction
Strategic management refers to proper setting of different objectives, analysis of the
competitive environment, evaluation of various objectives and even ensuring that the
management is rolling out the subsequent strategies in the entire company (Ansoff et al. 2018). It
is the respective management of the organizational objectives for properly achieving the goals
and objectives eventually. Strategic management mainly outlines the process of strategies being
developed and also ensuring a descriptive approach to be focused on. Strategic management is
extremely important and significant for all types of organizations and these should be followed
for effective execution of different strategies and also ensuring that competition is being kept on
top priority (Rothaermel 2016). The following report outlines a brief description on a popular
and significant concept or model of strategic management, which is corporate social
responsibility or CSR with proper description.
2. Discussion
Part 1: Corporate Social Responsibility
2.1 Selection and Description of a Suitable Concept or Model in Strategic Management
There are some of the most significant and important concepts or models of strategic
management that are required to be considered on top priority, such as core competencies,
generic strategies, corporate social responsibility, alliances, blue ocean strategy, mergers and
acquisitions and many more (David and David 2016). Amongst them, the most noteworthy and
vital concept is corporate social responsibility. CSR is the subsequent type of international
private business self regulation, which has the core objective for contributing to the societal
objectives of an activist or charitable nature after engagement of ethically oriented practices.
CSR is also being described as the internal business policy or even the corporate ethical
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strategies (Ginter, Duncan and Swayne 2018). This type of strategy is being understood for the
most common private firm policy.
Moreover, it should be aligned with the business processes and then integrated into a
specific business model for becoming successful. Corporate social responsibility can be easily
complied with three various strategic organizational choices (Lasserre 2017). It is the self
regulating business model that eventually helps the organization to be socially accountable for
the public. The organizations could be conscious of the adverse effect that they have on the
major aspects of this society like environmental, social and economic. It helps in making the
organizational strategies highly sustainable and hence reduce the chance of business failure to a
high level (Moutinho and Vargas-Sanchez 2018).
2.2 Critical Examination of the Concept of Corporate Social Responsibility with Proper
Arguments and Concept Evaluation
Corporate social responsibility is being selected since it would be extremely effective and
efficient for any business to ensure that business strategies could be executed successfully. By
practicing corporate social responsibility, the respective organizations would be having the major
impacts of business growth and advantages (Frynas and Mellahi 2015). As a result, the
organization gets the opportunity to operate in different methods, which can increase the
environment and society for contributing negatively to them. CSR is a broad concept, which
takes up several forms on the basis of the industry and company. With the help of these CSR
programs, different businesses could provide advantage to the society while boosting the brands
(Hitt and Duane Ireland 2017). It is equally valuable for any organization and helps in forging a
strong bond within the corporations and employees, so that they feel more connected with the
world.
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It is quite vital for a company to be accountable to itself as well as its shareholders.
Different organizations that adopt the major programs of CSR have grown their respective
business to the point, in which they could provide back to the society (Morden 2016). Corporate
social responsibility is referred to as the major strategy of larger businesses. Furthermore, the
more successful and visible corporation is the more responsibility it comprises of setting
standards of ethical behaviors for the industry, competition and peers (Meyer, Neck and Meeks
2017). Better commitment towards community welfare and sustainability is being obtained in the
business with such incorporation of organizational attributes and aspects. The entire concept of
CSR helps to reduce the chance of organizational ineffectiveness to a high level and hence
enhancing growth and development subsequently (Bryce 2017). As a result, CSR is a major
reason to ensure that the business would be gaining some of the most significant competitive
advantages.
Since it is responsible for integrating the business operations into a business model,
corporate social responsibility can easily work for stakeholder management as well sustainability
management (Crane, Matten and Spence 2019). Different strategies of CSR majorly encourage
the respective organization in making a subsequent positive effect over the environment as well
as stakeholders like communities, investors, staff, customers and many more. From the
perspective of ethics, few distinct businesses would be adopting different practices and policies
of corporate social responsibility, so that there is a balance in organizational economy (Grayson
and Hodges 2017).
The respective business will understand the unrealistic expectations after dealing with all
types of positive, negative as well as neutral financial impacts for the faulty empirical analysis
and then claimed to make to the work specified (Flammer 2015). The business would be able to
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increase their long termed profits after operating with the perception of CSR. As a result, it
would deal with a risk management attribute for managing the business model. CSR has the core
responsibility to aid the organizational mission and then serve as the guidance for the
organization to represent properly for its customers (Wang et al. 2016).
Business ethics is the most significant part of the applied ethics, which examines different
ethical principles as well as ethical and moral problems, arising within the business environment.
CSR is the evolving business practice that could easily incorporate sustainable development into
the business model of the organization (Hopkins 2016). It comprises of a positive effect on
environmental, economic and social factors. CSR positively impacts the business after
improvement of image, building up of the organizational brands and then motivating the business
as the business owner. When the utilization of corporate social responsibility will be expanding,
it would become quite significant for having a socially conscious image.
Moreover, the stakeholders, employees and customers are initiating to prioritize this
corporate social responsibility while selecting the organization or brand. They are hence holding
the corporations accountable to impact the social change with their business beliefs, profits and
practices (Harjoto, Laksmana and Lee 2015). A robust program of this corporate social
responsibility is eventually considered as the major opportunity for the organizations to
demonstrate their corporate citizenship. It is quite effective for protecting the business from
outsized risk by simply checking at the entire environmental and social attributes, which are
surrounding the business (Watson 2015). Governmental regulations are being followed in this
aspect and organizational sustainability strategy is the biggest factor for selecting the top most
talent for their works. There are four distinct and important categories of CSR, which can
recognize the efforts of the business for better emphasis on work. The first and the foremost
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category is environmental effect. Businesses of various sizes, comprise of large carbon footprints
and as a result, the business sustainability is not balanced (Lins, Servaes and Tamayo 2017).
When the business takes up any subsequent step for successful eradication of these effects,
would be considered as extremely vital for the organization and society.
The second distinct and important category of corporate social responsibility is
philanthropy. Different businesses could easily practice several social responsibilities only by
donating money, services as well as products to the socialized causes and non profits (Chernev
and Blair 2015). The large organizations have the tendency to have several resources, which
could easily provide advantages to the charities and even the local community programs. It is the
best to consult with the companies, regarding the specified requirements, even before donating
properly. The third significant and noteworthy category of corporate social responsibility is
ethical labor practices (Saeidi et al. 2015). After considering these staff fairly and ethically, the
organizations could demonstrate the social responsibilities for successfully operating in the
international places with specific labor regulations, which are different from the host country.
The fourth important and significant category of corporate social responsibility is volunteering.
Attending different volunteer events refer to the importance of the business (Ioannou and
Serafeim 2015). As a result, the organizations could express their subsequent concern for
subsequent issues and even commitment to the respective companies.
2.3 Explanation of the Process of Concept fitting in Present Situation with other Concepts
of Strategic Management with Discussion of its Relevance to the Business Challenges
Corporate social responsibility is also responsible for ensuring that the respective
business is following strategic management in their respective businesses. Strategic planning is
the most significant form of management, where the organizations are undertaking different
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ethical aspects of their business operations into consideration (Kang, Germann and Grewal
2016). These businesses eventually incorporate the major social issues into their respective
business approaches and are much more sensible of the roles within society and even their
communities outside the business (McWilliams 2015). Apart from following the law or
regulation, this CSR includes a business undertaking proactive steps for improvisation in the
quality of life for the community and staff. Several businesses would choose a separate strategy
of social responsibility from one another, however they all emphasize on four aspects of ethics in
the business, which are philanthropic, legal, ethical and economic (Slack, Corlett and Morris
2015).
Strategic management mainly involves on the formulation as well as implementation of
the most important initiatives and goals that are being undertaken by the organizational top
managers, on the basis of consideration of different resources. It even considers the assessment
of the external and internal environments, where the company is operating (Liang and
Renneboog 2017). As a result, it provides a proper direction to a company and also includes
specification of the organizational goals, development of policies and plans for achievement of
the objectives. Planning is being done in an excellent manner with few distinct steps to ensure
that the strategy is effective and efficient.
Three principles are being considered for this purpose, which include creation of a unique
and valuable market position, making subsequent trade offs by simply choosing the wrong
doings and even creation of the perfect after alignment of the organizational activities with one
another for supporting the selected strategy (Frynas and Stephens 2015). The entire procedure of
strategic management is extremely helpful for the companies to take up stock of their current
situation, chalking out of strategies, implementing them and even analyze the overall
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effectiveness and efficiency of the respective deployed management strategies. It could be
eventually predicted on the organizational clearer understanding of the mission as well as the
vision for where it wants to be in the future for understanding the values, which would guide the
respective actions (Jamali and Karam 2018).
The economic strategy of social responsibility initiates with ensuring that the
organization is highly sustainable that can make it profitable. The organization requires to make
profit for satisfying their shareholders and then making adequate money for paying the
employees with respectable wage (Rupp and Mallory 2015). It should even be the responsibility
of the organization to ensure that it is addressing different issues like discrimination in the
gender wage. The economic social responsibility also includes paying of appropriate business
taxes and then meeting the other financial commitments. The business challenges could be easily
identified that are related to finances with this particular strategy and the businesses would find
out various inefficiencies within the operations, which waste organizational values, while
deploying these processes during improvement of efficiencies (Schäfer 2016).
The next strategy of CSR is ethical social responsibility. The ethics and values within
strategic management are extremely vital. Being ethical means the organization would be aware
of the standards and values of the company and then operate in such a manner, which is
conducive for them (Petrenko et al. 2016). Different ethical principles are required to be
emphasized for ensuring that the business is ethical. It helps to ensure that the organization
would be following different environmental impacts and also limiting the waste in the business.
The organizations must complete their analysis of the procedures, they utilize and ensure that the
impact of the environment is much higher and different issues could be resolved (Flammer
2015). The legal social responsibility eventually revolves to ensure that the organizations are
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aware of the local, state and federal laws. Different organizations should even comply with the
labor laws and safety for involvement of regulators. The philanthropic social responsibility
includes the organizational resources and time for making investments within the communities,
in which they are operating subsequently (Strand, Freeman and Hockerts 2015).
Corporate social responsibility also focuses on the other vital concepts of strategic
management, such as core competencies, mergers and acquisitions and generic strategies of the
business. The core competencies are those distinct capabilities and resources, which consists of
the strategic benefits of the organization (Albuquerque, Koskinen and Zhang 2019). These core
competencies are the harmonized combinations of different skills and resources, which
distinguish the organization in the respective market place and hence ensuring high success in
competitiveness (Shaukat, Qiu and Trojanowski 2016). There are three different core
competencies, which include providing potential accessibility to a wider variation in markets,
making a distinct contribution to the perceived customer advantages of the end products and
finally difficulty in imitating by the competitors. Various attributes of core competencies are
being kept on top priority for making all other products, needing such competencies (Hong, Li
and Minor 2016). This particular concept of strategic management is needed to be followed by
the business as it ensures that different business challenges are completely eradicated in the
organization.
The concept of core competency results from the distinct set of production techniques
and skills, which deliver extra values to the customers and as a result they enable the business for
accessing a wider variety of markets (Lins, Servaes and Tamayo 2017). The successful as well as
understanding of the entire concept of core competencies could be extremely vital for the
enterprises. They could even utilize core competencies for the core purpose of excelling at the
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contrivance of different products. The businesses can even utilize the core competencies for
raising values of stakeholders and customers (Chernev and Blair 2015). The capability of the
business is the management ability for developing new business attributes and hence exploiting
the complete capacity. The competencies are well managed and enhanced for industrial changes
in the future and hence different business challenges are resolved with the combination of
corporate social responsibility.
There are some of the most significant and important business challenges in the business
that are needed to be highlighted for better execution of business processes and operations
(Ioannou and Serafeim 2015). These could be easily eradicated with strategic management
concepts and processes. The first and the foremost challenge of business is uncertainty about the
future. The business might become a major failure and the organizational approaches might be
problematic for the business. Moreover, financial management and monitoring of performances
is done well with the strategic management approach (Kang, Germann and Grewal 2016). The
organization also faces issues related to compliance and regulation in their business and hence
the competencies as well as the recruitment of the most suitable talent becomes a major issue.
Management of technologies and customer services are also quite disturbing for the business and
it might even affect the overall competencies to a high level. They are also unable to manage the
data completely ethical and socially. The corporate social responsibility is hence kept on top
priority for the business (Slack, Corlett and Morris 2015). However, the organization gets
opportunity in dealing with the most difficult situation related to such business challenges for
enhancing the chance of ethical approaches to a high level. With the help of the approach of
corporate social responsibility, the organization would not diversify the client bases and stay
passionate about work.
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A suitable organization, hence would lower the chance of investing and using new
technologies and competing on the global stage (Liang and Renneboog 2017). The concept of
generic strategies when involved with the corporate social responsibility would ensure that the
business is effective and would be undertaking decisions and strategies, which are ethically and
socially correct for the business (Rupp and Mallory 2015). As a result, the business would be
becoming a corporate social responsibility oriented organization without much complexity. The
employees would get involved in the respective process of decision making and clarity and
assurance would be present in the business for better execution of all types of business processes
and operations. Sustainable development would be enhanced and the customers would deserve to
share with the most effective alternative (Flammer 2015). Hence, this particular concept of
strategic management, corporate social responsibility is referred to as the most effective attribute
for business management also ensure that the business is free from any type of challenge or
issue.
Part 2: Real Life Case Study
Several popular and significant organizations are utilizing corporate social responsibility
in their entire world for ensuring that the business is absolutely ethical and social in terms or
environment management without much complexity (Albuquerque, Koskinen and Zhang 2019).
Since, the entire business world is eventually becoming highly complicated and demanding, the
modern day business issues would be well eradicated on top priority. CSR, in this particular
situation has been quite effective, especially for the developing countries. It majorly involves
various responsibilities that are required to be eradicated on a priority basis (Shaukat, Qiu and
Trojanowski 2016). The businesses and corporations are undertaking different actions beyond
the boundaries that would impact the society and environment even the business would incur
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high costs. The major concepts that are needed to be combined with this type of corporate social
responsibility include social and environmental auditing, business ethics, corporate governance,
strategic philanthropy and environmental sustainability (Hong, Li and Minor 2016). It helps to
ensure that sustainability is on the top most priority and the business is gaining maximum
success without much complexity.
One of the most significant and important organizations that is following corporate social
responsibility within the business is Unilever (Case Studies in CSR: Unilever. 2016). It is a
popular British Dutch multinational customer goods organization, which emphasizes on the
specified activities and actions of the business, however even ensures that supply chain is
supporting it for dealing with the activities. They have implemented corporate social
responsibility in the business for ensuring that the business becomes highly sustainable and
success is prevailed on the highest priority (Case Studies in CSR: Unilever. 2016).
Environmental impact is reduced to a high level for the long term and large scale advantages, so
that sales growth is enhanced in their business. They have been able to achieve three distinct
objectives in the year of 2020, which are provided in the following paragraphs:
i) The first and the foremost important and significant objective of the organization of
Unilever for the year of 2020 is improvement of the health as well as well being of the
organizational customers and employees (Case Studies in CSR: Unilever. 2016). They are able to
deal with the safety of the organizational members and hence ensure that the business is gaining
maximum success easily and promptly. Unilever is also focusing on the various attributes that
are required to be considered eventually in the business.
ii) The second vital and noteworthy objective of the organization of Unilever for the year
of 2020 is reduction of the organizational overall environmental impacts and effects. These
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effects would be responsible for ensuring that the business would be able to deal with all types of
complex situations and also ensure that the business is free from any type of environmental issue
(Case Studies in CSR: Unilever. 2016). Unilever has started different approaches and strategies
of the business for meeting the goals and objectives.
iii) Another significant and important objective of the organization of Unilever for the
year of 2020 is successful enhancement of the livelihoods of millions of individuals in the entire
world. They are on the track to fulfill most of the green objectives and also has made admirable
progress in the improvement of their well being, health and livelihood of the other individuals
(Case Studies in CSR: Unilever. 2016). Over 55 percentage of the agricultural raw materials of
Unilever are now sustainably sourced that is over halfway to their respective target of one
hundred percentage in the year of 2020.
The organization is even making proper reductions in the usage of carbon dioxide from
both water and energy within the segment of manufacturing and hence reducing these attributes
to 32 percent and 37 percent in 1 ton of production respectively from the year of 2008. This
particular organization of Unilever has also achieved one of the green goals ahead of their
schedule, which is the non hazardous waste for landfilling (David and David 2016). It has even
managed to reach more than 397 million individuals with programs on safe drinking water, oral
health, hand washing, self esteem and sanitation. The respective business case for the progress of
Unilever cannot be clear and the growth and development of the organization to deal with the
complex issues of increasing environmental challenges and rising population (Ginter, Duncan
and Swayne 2018). They have selected corporate social responsibility to involve a
transformational approach in the business and also reaching out to the goals and objectives of
this particular organization successfully regarding sustainability.
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CSR has become extremely significant as a business strategy and hence Unilever has
implemented it in their business approach. The customers prefer to purchase the services and
products from different organizations that they trust and the suppliers want to form business
partnerships, gained from them (Moutinho and Vargas-Sanchez 2018). As a result, they are able
to bring out major innovations within the organization and social changes to ensure that the
employees and customers of Unilever are highly effective and efficient, as compared to any other
business in the world. Sustainable development is also enhanced to a high level and the capacity
of the environment is reduced for providing for all future generations (Morden 2016).
The resource usage is also considered on top priority and ensure that only sustainable
solutions are being gained without much complexity and issue. Unilever has also highlighted
their probable issues, so that they are able to undertake immediate actions within their regular
operations (Meyer, Neck and Meeks 2017). Moreover, being a multinational organization, they
have been able to enhance globalization to a high level. Globalization is the most complex
procedure, as it includes different social changes, which are happening simultaneous across
several dimensions in the world economy. The effects and impacts of the business issues are well
eradicated eventually within this particular organization of Unilever (Crane, Matten and Spence
2019). The society and economy are highly impacted with such effectiveness and hence the
public welfare is being considered on the highest priority by Unilever.
They are doing business in several countries, apart from their host country and as a result,
it is required for them to ensure that governance is being managed and the customers and
investors are concerned majorly about financial approach in the business (Grayson and Hodges
2017). The company should take up different significant actions for best serving the organization
and also fulfilling the economic objectives. A proper approach of CSR could also help to build
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shares and market values for Unilever and hence reduce the expenses of capital for improving
their responsiveness to the market. It would also protect the environment as the largest
organizations in the world are showing major commitment to the corporate social responsibility
by reduction of the environmental footprints (Harjoto, Laksmana and Lee 2015). Such businesses
believe that the environmental and financial performances could work out together for driving
social reputation and organizational growth in the business.
Unilever had been able to improvise their corporate governance, ethical standards,
accountability as well as transparency with the help of corporate social responsibility approach.
Environmental stewardship is required for building and retaining the organizational values (Lins,
Servaes and Tamayo 2017). The operating costs are hence lowered and the company becomes
highly ethical with the incorporation of various aspects and attributes. Moreover, they have been
able to maximize the usage of recycled materials, after enhancement of different environment
friendly approaches with CSR. The employees of Unilever are being retained properly.
Furthermore, the company is also focusing on the employee recruitment, selection and
productivity (Chernev and Blair 2015). The other advantages to adopt corporate social
responsibility practices mainly involve attracting the most loyal and talented employees and
ensure that they are highly committed to the work place since they are proud to be a part of
Unilever.
Customer loyalty and brand image is also focused by the organization to ensure that the
business gains maximum advantages from corporate social responsibility. As a result, it enhances
a positive effect on the brand image as well as customer loyalty (Ioannou and Serafeim 2015).
When the organization is known to be ethical and responsible in terms of different attributes and
aspects. They have become socially responsible with the help of corporate social responsibility
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and the values of humanity are increased to a high level for maximization of profit.
Differentiated products are also enhanced and the companies eventually have the objective to
increase their perceived values of the services and products of their competitors (Kang, Germann
and Grewal 2016). Unilever has also implemented socially responsible policies and hence has
been able to ensure product differentiation for satisfying the respective unfulfilled requirements
of customers, for offering the business benefits and financial advantages to their business. The
business also offers environmentally friendly products experience higher sales growth and
development than other organizations, selling conventional products and services (Slack, Corlett
and Morris 2015). Hence, in the context of CSR, Unilever eventually develop newer products
that aim not only to become more competitive, but also for making a great effect on the society
through different ethical practices. As a result, Unilever has gained major advantages from the
approach of CSR with high effectiveness (Case Studies in CSR: Unilever. 2016).
3. Conclusion
Therefore, from the above discussion, a conclusion can be drawn that strategic
management is the ongoing planning, monitoring, analyses as well as assessment of every aspect,
which is required for the company for successfully meeting the objectives and goals. Various
changes within business environment need the companies to continuously assess their respective
strategies for getting success. It needs a subsequent commitment towards planning of strategies
and ensuring that the business management is involving on the organizational capability for
setting both long term and short term objectives, so that it becomes easier to plan the strategic
decisions. Moreover, resource allocation is required for achieving the goals. It is the major
procedure to manage the strategies of a business and hence keeping a subsequent pace with the
evolving technology for proper planning of the future. The above provided report has properly
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outlined the entire concept of strategic management with the proper description of the concept of
strategic management, corporate social responsibility with details.
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