Corporate social responsibility and business strategy: a case study of a Japanese firm shifting from environmentalism to strategic CSR

After Milton Friedman's controversial claim that the social responsibility of a firm is to maximise profit within the legal framework, many scholars began to argue for altruism in corporate social responsibility (CSR). However, taking a middle approach between the two extremes of self- interest and altruism, the current trend is to locate CSR at the strategic level of the firm and to incorporate CSR as an integral part of the core business strategy and processes. It is believed that the sustainability of a firm and its CSR initiatives can be ensured through this approach. At the firm level in different national contexts, the processes and the specific actions that are needed to operationalise strategic CSR have not been adequately investigated and reported in the literature. Findings prove that CSR can be embedded in to the core business philosophy and strategy to enhance performance. The two-way flow of decision making between the strategic level and the functional level was critical for companywide CSR commitment. It is revealed that CSR is not an ‘added component’ but an integral part of the core business.