We used a multi-level conceptual framework, consisting of micro, meso, and macro levels, to analyze qualitative data (20 interviews, observation of two board meetings and analysis of over 25 public documents) collected through a case study design that focused on the directors of three financial cooperatives operating under a large group of Canadian financial service cooperatives. The aim of this study was to examine how cooperative directors influence the CSR strategies of their organization.
The paper advances the understanding of CSR in small firms and provides novel insights into how CSR is linked with competitive strategies.Ĭooperatives, which have a dual mission that includes both business and social goals, are of particular interest for the study of corporate social responsibility (CSR). The paper concludes that, except for seeking differentiation through community engagement, the approach of small firms to CSR remains largely characterized by adhoc decisions with few ties to their competitive strategies. Competing through a strategy of cost-leadership is associated with neither community nor environmental engagement. Using data collected from 478 small firms representing multiple industries in the US, this paper finds that a firm's focus on competing through differentiation strategy is associated with its level of community engagement but not with its level of environmental engagement.
Yet, how CSR is linked to a firm's choice of competitive strategy is not explicitly explored in the extant literature.
In the strategy literature, differentiation and cost reduction are recognized as two major competitive strategies that firms pursue to outcompete rival firms. Corporate social responsibility (CSR) literature holds that CSR can help firms gain a competitive advantage by enabling them to differentiate themselves from their competition and reduce costs.
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