Categorizing Corporate Social Responsibility Strategy: A Perspective of Legitimacy Management

Despite a tremendous amount of research on corporate social responsibility (CSR) in the management field, previous literature does not offer a clear typology of CSR strategy beyond a simple distinction of more vs. less investment and reactive vs. proactive posture. We develop a typology of CSR strategy upon two strategic considerations around a particular social issue: issue legitimacy and potential for competitive advantage. We highlight an overlooked fact about an inconsistency in legitimating a social issue, presenting conflicts or temporal gaps at various levels. Firms also consider whether an issue can be integrated into core business operations to enhance competitive advantage. Combining these two dimensions, we propose four types of CSR strategy in the typology and explain each.