Elizabeth C. Kurucz, Barry A. Colbert, and David Wheeler
The purpose of this article is to provide a general summary of the key value propositions evident in the research on the business case for corporate social responsibility (CSR), described as four general ‘types’ of the business case, or four modes of value creation. It then presents a critique of these approaches (including identifying some problems inherent in the construct of CSR itself) and offers some principles for constructing a ‘better’ business case. Its intent is not to conduct a thorough review of studies analyzing the relationship between CSR and financial performance, as that has been well done elsewhere. Rather it seeks to unearth assumptions underlying dominant approaches in an effort to build a more robust business case for CSR that can move beyond existing limitations.
Majken Schultz, Mary Jo Hatch, and Nick Adams
This article, which concentrates on symbolic management by explaining the role of corporate branding in managing corporate reputation, using Novo Nordisk as a case study, presents three perspectives on corporate branding: the marketing perspective, the organisational perspective and the co-creation perspective. The three perspectives reviewed show the possibility of developing a multidisciplinary conceptualisation of corporate branding. They all offer insights important to managing organisations as corporate brands in a multi-stakeholder context and thus to the likelihood that corporate branding is a way to influence corporate reputation. The Novo Nordisk management believes the data indicate that corporate branding influenced reputation more than the other way around. Formal brand management practices may work considerably better when they complement rather than try to control existing forces at work among the stakeholders of a company.
A Study of the Long-Term Value of Capabilities-Based Resources, Intangible Strategic Assets, and Firm Performance
Brian R. Chabowski and G. Tomas M. Hult
How do capabilities-based resources focused on customers, supply chains, and how does innovation impact a firm’s strategic assets and performance? We develop a framework to (1) test strategic resource allocations as investments in future opportunities, (2) examine the influences of strategic resources on strategic assets, and (3) study the effects of strategic assets on performance. The model incorporates data from a 12-year period to examine the lagged effects over a “strategic” length period. The results show that the resources that affect assets include business-to-customer (B2C) marketing expenditures, sourcing attentiveness, inventory readiness, production capacity, and overall innovation creativity. Customer satisfaction and brand equity are two firm-level strategic assets that influence financial performance. The robustness of the overall results was also examined in two technological contexts (low/stable vs. high tech).
Timothy M. Devinney
This article describes how one can apply models of market segmentation to the understanding of the varying nature of green consumers. It reviews two approaches of segmentation and argues that only one of them will be effective when attempting to understand socially laden consumption behavior. A discussion of how one can think about segmentation from this perspective is presented. Preference heterogeneity is a necessary but not sufficient condition for effective segmentation and that heterogeneity can lead to non-obvious outcomes. Segmentation is affected by the variance of consumer preferences. Moreover, the article considers three areas of application: examples of a priori segmentation; examples of behavioral segmentation; and developing a general way of thinking about applications of segmentation models. It is impossible to understand green consumption without a complete understanding of the non-green aspects of particular consumption contexts.