The Business Case for Corporate Social Responsibility: A Company-level Measurement Approach for CSR
This paper addresses the gap in corporate social responsibility (CSR) literature concerning the evaluation of CSR’s business impact at the company level. While existing research often supports a positive relationship between CSR and firm competitiveness, systematic models for assessing the company-specific value of CSR initiatives remain underdeveloped. The author proposes a multi-step CSR impact assessment model that integrates qualitative and quantitative indicators, including the CSR Value Added (monetary benefits), key performance indicators (KPIs), and qualitative stakeholder impacts. A case study of Philips Austria illustrates the model’s practical application, highlighting its utility in guiding CSR strategy and decision-making. The study concludes that comprehensive CSR assessments must consider both monetary and non-monetary impacts to capture CSR's strategic relevance effectively.
Key Findings
The study develops a CSR Impact Assessment Model which is a framework combining
monetary indicators, non-monetary Key Performance Indicators (KPIs), and qualitative
assessments of stakeholder effects
The concept of CSR Value Added quantifies the net monetary benefits of CSR activities to the company, offering a financial perspective on CSR’s contribution to competitiveness and sustainability.
The framework emphasizes the inclusion of stakeholder-specific impacts (e.g., employees, customers, community), allowing for a multi-dimensional understanding of CSR outcomes.
A case study of Philips Austria demonstrates the model’s applicability in a real-world corporate context, leading to improved stakeholder relations and license to capital, and relevant CSR initiatives
The assessment approach helps firms identify high-impact CSR activities, allocate resources more efficiently, and enhance internal decision-making and external reporting.
Effective CSR evaluation requires integrating financial, operational, and reputational dimensions, rather than relying solely on short-term financial metrics.
The findings reinforce the idea that CSR should be viewed as a strategic investment rather than a cost, capable of generating both tangible business returns and intangible value.
Opportunities for Further Research
Future studies should empirically test the proposed measurement framework across multiple firms, industries, and geographic contexts to assess its generalizability and robustness.
Additional research is needed to develop standardized methodologies for calculating CSR Value Added, particularly in linking CSR inputs to long-term financial performance.
The model may require sector-specific tailoring to capture unique CSR dynamics in industries such as manufacturing, finance, healthcare, or energy.
Further research could explore how the CSR assessment approach aligns with or enhances existing ESG (Environmental, Social, Governance) and sustainability reporting frameworks (e.g., GRI, SASB, IFRS S1/S2).
Studies should evaluate the predictive power of various non-monetary KPIs and qualitative metrics in explaining both internal (e.g.,employee engagement) and external (e.g.,brand reputation) outcomes.
Further inquiry could develop valuation models for assessing CSR’s differentiated impact on key stakeholder groups, including employees, consumers, investors, and communities.
Definitions
Corporate Social Responsibility (CSR): Defined as a company’s commitment to integrate social, environmental, and economic concerns into its business operations and stakeholder interactions on a voluntary basis, going beyond compliance with legal obligations.
Business Case for CSR: Refers to the economic rationale for corporate engagement in socially responsible behavior specifically, how CSR initiatives can generate measurable business value, including improved performance, innovation, and stakeholder relations.
CSR Value Added: A monetary indicator proposed in the article to quantify the net financial benefit of CSR activities to the company. It represents the incremental value created through CSR relative to the resources invested.
Key Performance Indicators (KPIs): Quantitative and qualitative metrics used to evaluate the effectiveness and impact of CSR initiatives across different stakeholder groups and business functions (e.g., employee turnover, customer satisfaction, community engagement).
CSR Impact Assessment: A multi-level evaluation process designed to measure both monetary and non-monetary outcomes of CSR efforts. It incorporates stakeholder perspectives and strategic business objectives.
About the Author
Manuela Weber is a researcher and corporate responsibility specialist with expertise in sustainability management, stakeholder engagement, and CSR impact assessment. At the time of publication, she was affiliated with the Bertelsmann Stiftung, a leading German think tank focused on promoting responsible corporate governance and social innovation. Her work centers on developing practical tools and frameworks for integrating social and environmental concerns into business strategy. Weber has contributed to the advancement of CSR measurement practices at both academic and organizational levels, with a focus on bridging the gap between normative CSR ideals and managerial decision-making. Her research supports the implementation of value-driven and performance-oriented approaches to sustainable business.