trends and future of sustainable development - TransEco

stakeholder-related risks better Bonini et al. (2006, 20-32). Basically, in this connection Smith (2005,57-65) points out that social issues mismanagement, respectively ignoring social risks can lead toprotests by social institutions against companies as well as to a loss of the firm’s reputation in society(Bhattacharya, 2009, 88). Furthermore, in addition to the mentioned benefits Heslin and Ochoa (2008,128-131) point out that growth in market share, increased organizational learning, retention of deeplyengaged employees, support from external stakeholders as well as favourable relationships withinvestors can be the result of executing strategic CSR.First of all, increased sales of both, premium products and services can result from a company’sintense CSR efforts, because consumers are increasingly looking for these efforts, as already mentionedin previous chapters. Secondly, companies can learn through conducting strategic CSR, like for examplethrough projects in which they invest. The knowledge accumulated can be subsequently used to furtherdevelop a firm’s core competencies or to drive new innovations, in addition to contributing to theimprovement of social and environmental conditions. (Heslin & Ochoa, 2008, 128) Thirdly, Heslin &Ochoa (2008, 129) state that more and more employees are looking for socially responsible companies towork for. Therefore CSR, especially strategic CSR, represents a powerful instrument in order to motivateand retain committed and engaged employees.The survival and prosperity of organizations is highly influenced by various external stakeholdersand the credibility of companies is increasingly measured by the degree of a firm’s CSR involvement(Heslin & Ochoa, 2008, 130). There are a number of benefits that can be achieved through a company’scommitment to CSR.3. Corporate Citizenship and Total responsibility Management in practiceCorporate Citizenship - The metamorphosis of capitalism lies at the very heart of the discussionsabout CSR, and more recently, corporate citizenship that has abed and flowed throughout most of the20 th century. As more and more pressure is put on capitalism to perform as basically the only majoreconomic system the world now has left, the focus on the social and environmental impact on thatsystem will inevitably increase. Holistic corporate citizenship is best viewed, not as a program ofactivities but as a holistic system of organizational behavior affecting every level and aspect of anorganization’s policies and practices (Eklington, 1997, 258). Stories of corporate citizenship practiceabout (see McIntosh et al. 1998; Tichy et al. 1999); theories of corporate citizenship are in the making(Altman & Davenport 1998; Altman & Vivader-Choen, 1995; Davenport 1998, Davenport et al. 1999;Waddock 1999 and 2001; Wood & Logsdon 1999). However, as far as we are aware, there is as yet nosubstantial research bridge between theory and practice, no assessment of the gap between desired andcurrent states of corporate citizenship. Three attributes are presented, which indicate the good corporatecitizenship: ethical business behavior, stakeholder commitment and environmental commitment. Tosupport these three attributes, participants identified 20 principles of corporate citizenship as criteria forguiding and assessing an organization’s performance (Davenport, 1998): Ethical business behavior,stakeholder commitment, community commitment, consumer commitment, employee commitment,investor commitment, supplier commitment, environmental commitment.Responsibility management - The research into CSR, carried out over the last 30 years hasmainly been related to the analysis of value creation (Clarkson, 1995; Harrison and Feeman, 1999;339