Corporate social responsibility as a competitive advantage tool

Abstract

Design/methodology/approach. The authors used the following methods in the study: analysis of scientific literature, analysis of secondary and legal documents, review of projects in the area of the subject, and a questionnaire method. Findings and Originality. The research confirmed the hypothesis partially: companies integrating corporate social responsibility in their activities have greater competitive advantage then those which only follow the law and apply minimal ethical standards. CSR implementation strengthens company's reputation, loyalty of employees and customers, better treatment of financial and governmental regulation institutions, ect. Application of social responsibility provides benefits not only for business, but for the community as well, which becomes more cohesive and healthier. The research showed that among small-and medium-sized enterprises corporate social responsibility is still not widely known and understood. This proves the need to take more respective actions in informing public and business about the benefits of CSR and implementation opportunities.