The Evolution of CSR from Compliance to Sustainable Entrepreneurship

Abstract

Today businesses are increasingly judged by the extent to which they consider the main interests of society. Thus, the concept of corporate social responsibility has been transformed dramatically over the last couple of years. From a pure philanthropic perspective (sponsoring and donations), instead of being merely a legal compliance approach, it has developed into an explicit responsible management issue. Now a third stage of CSR, discussed as Sustainable Entrepreneurship, has arrived. It comprises the general question about the overall contribution of enterprises to urgent social challenges. This new strategic positioning of businesses in society aims at increasing social and business added value at the same time (shared value). Businesses as responsible corporate citizens no longer want to be viewed as a problem, but are aiming to provide solutions for the pressing challenges of our time. This realignment of strategy among leading enterprises increases their competitiveness and provides urgently needed solutions for society – so called social innovations.