Literature Review

In a 2006, Harvard Business Review article by Michael E. Porter and Mark R. Kramer “Strategy and Society: The link between competitive Advantage and Corporate Social Responsibility”. It is argued that society and government are increasingly holding corporations to account for the social consequences of their activities. The authors claim that as a result, corporate social responsibility has emerged as an inescapable priority for business leaders in every country (Porter & Kramer, 2006). It is argued that corporations should analyze corporate social responsibility using guidelines that guide their core business decisions. In doing this, corporations would discover that CSR could be a source of competitive advantage and innovation. This article suggests a new approach to the business and society relationship, where corporate growth and social welfare are not a zero-sum game. Porter and Kramer develop a framework that corporations can use to identify social consequences of their activities and discover opportunities that benefit society and the corporation. It is stated that social responsibility is increasingly becoming important for competitive success.

The 2009, Harvard Business review article titled “Why sustainability is now the key driver of innovation.” By Ram Nidumolu, C.K. Prahalad, and M.R. Rangaswami argues there is no alternative to sustainable development. Business leaders around the world are still under the false impression that sustainability leads to a reduction in competitiveness in the organization. Their research shows that sustainability is the mother lode of organizational and technological innovations that yield both bottom-line and top-line returns (Nidumolu, Prahalad, and Rangaswami, 2009). The main driver for this innovation is it compels companies to change the way they think about process, technologies, products, and business model. It highlights several steps for a corporation to successfully implement a sustainability strategy they include; viewing compliance as opportunity, making value and supply chains sustainable, designing sustainable products and services, develop new business models, and creating next-practice platforms.

In conclusion, it is becoming increasingly important for corporations to implement a sustainability strategy, as society and governments are increasingly demanding more socially conscious organizations. Sustainability should not be viewed as a zero-sum game, but rather as an opportunity for businesses to develop new products and an efficient supply and value chain. As businesses continue to implement their sustainability strategies, there is a corresponding increase in innovation and a competitive advantage for that company, therefore creating shared value.