Performance Outcome of CSR Behavior: Moderating Role of Motivations to Engage

Abstract

The new trend in the CSR practices reflects a shift from quantity (degree) of CSR actions to quality of such efforts. Instead of maximizing the number of CSR issues addressed, firms are identifying key strategic issues that also align with their business actions. For example, Coca-Cola invests in several African and Southeast Asian countries with an intention to increase brand penetration in the region and develop future consumers of their product in these countries (Sohn 2014). Similarly, Cargill Inc., one of the world leaders in processed food market, closely works with farmers in Ghana to improve their living conditions and provide education. Ghana is a huge cocoa production base for Cargill. By investing there, Cargill protects its own supply base for future (Sohn 2014). A report by As You Sow, a nonprofit organization, stated that retailers like GAP Inc., Timberland, Nike, and Nordstrom use internal organizational strategies to streamline CSR efforts. They are increasingly adopting responsible purchasing practices and have made changes in five areas of corporate culture: designing and buying, forecasting, production management, and pricing. These efforts have resulted in improved working conditions along with cost reductions (CSR Wire 2010).