Enlightened shared value: a new stakeholder approach to corporate social responsibility
ISSN: 1747-1117
Article publication date: 23 November 2021
Issue publication date: 5 January 2023
Abstract
Purpose
This paper aims to provide a new conceptual approach to corporate social responsibility (CSR), termed enlightened shared value (ESV), by applying the social dilemma paradigm and long-term value maximization.
Design/methodology/approach
In this conceptual paper, the author analyzes CSR as an organizational social dilemma, where the conflicts among stakeholders and between short- and long-term outcomes are inevitable. To minimize these conflicts, firms need to aim at long-term value maximization to provide the maximum outcome to the firm and satisfy all relevant stakeholders. Adopting these perspectives, the author introduces ESV and compares ESV with major CSR approaches.
Findings
ESV provides a clear metric and the method for CSR, which is lacking in existing CSR approaches. Consequently, ESV is superior to and has better applicability than existing CSR approaches. The author suggests that shifting focus to long-term outcomes can reduce the conflicts in CSR and make CSR a win-win game.
Originality/value
As an alternative to existing CSR approaches, ESV can provide the best outcome to the firm and all relevant stakeholders. ESV adds the understanding of CSR’s theoretical discussions and provides a practical guideline to practitioners.
Keywords
Acknowledgements
The author thanks Dr Becky Reichard and members of the LeAD Labs at Claremont Graduate University for their comments on the previous versions of this paper and Dr. Michael Spezio at Scripps College for his comments when developing the idea for this paper. The author also thanks two anonymous reviews for their constructive comments.
Citation
Han, S. (2023), "Enlightened shared value: a new stakeholder approach to corporate social responsibility", Social Responsibility Journal, Vol. 19 No. 1, pp. 20-37. https://doi.org/10.1108/SRJ-05-2021-0211
Publisher
:Emerald Publishing Limited
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