Corporate Social Responsibility 2.0: From Compliance to Competitive Advantage
Keywords:
Corporate Social Responsibility (CSR), CSR 2.0, Competitive Advantage, Strategic Integration, ESG (Environmental, Social, and Governance), Creating Shared Value, Stakeholder Theory, Purpose-Driven Business, Sustainable Development, Triple Bottom Line, Brand Equity, Operational Efficiency, Talent Management.Abstract
The landscape of corporate obligation is undergoing a profound and irreversible transformation. This paper delineates the critical evolution from traditional, reactive Corporate Social Responsibility—termed here as CSR 1.0—which treated social and environmental concerns as peripheral compliance issues or public relations exercises, to a transformative, strategic paradigm we define as CSR 2.0. We posit that CSR 2.0 is no longer an optional add-on or a charitable sideline but has emerged as a fundamental driver of competitive advantage and long-term, sustainable value creation. It represents a fundamental rewiring of corporate purpose, moving from "doing good" alongside business to "doing good through business." Our analysis begins by deconstructing the inherent limitations of the compliance-based model, illustrating how its siloed, often superficial nature fails to address the root of a corporation's societal impact and leaves it vulnerable to accusations of greenwashing. In contrast, we define the core tenets of CSR 2.0 as deep integration into corporate strategy and operations, a rigorous materiality assessment to focus efforts on the most impactful issues, and purpose-driven innovation that uses societal challenges as a catalyst for new products, services, and business models.
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