Achieving Social Responsibility through Corporate Strategy: a Matter of Governance

A heightened interest in the concept of corporate social responsibility has arisen in Australia. This has occurred within the context of tax incentives for companies to form partnerships with communities and the leaders of Australian companies acknowledging their firms must take a responsible approach in their business activities. There is public dissatisfaction with corporate Australia over incidents of environmental degradation, perceived corporate greed, the impact from recent collapse of major companies, as well as bad experiences from the 1980s boom and bust period. The New Economy also requires organisational change, including that companies become more accountable for their impact on society. This paper is part of a research project whose purpose is to identify the processes involved to embed corporate social responsibility within the core values and strategies of large, Australian publicly-listed companies for maintaining their competitive advantage. The paper discusses findings from an investigation of literature on corporate strategy, corporate social responsibility and corporate governance in order to identify dynamic processes that enhance the integration of social responsibility within corporate values and strategies. This review concludes that there is limited evidence to adequately explain the structure, conditions and other mechanisms involved in this event, particularly within corporate Australia. It points to the achievement of social responsibility through corporate strategy to be a matter of corporate governance.