Doing Business Incorporating CSR and CG
A Business thinking from an Entrepreneur´s perception of value to a Company´s realized Strategy. The Case of IKEA
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The concepts of corporate governance (CG) and corporate social responsibility (CSR) are rapidly gaining ground in today s competitive market place. As a result of this, many companies are trying to incorporate these concepts in their business models or in their logic of value creation to various stakeholders. In this study, the authors regard strategy and business models as different constructs and argue that institutional pressures from NGOs and other governing bodies and associations as postulated by the Total Responsibility Management school of thought (encouraging the adoption of a good se...
The concepts of corporate governance (CG) and corporate social responsibility (CSR) are rapidly gaining ground in today s competitive market place. As a result of this, many companies are trying to incorporate these concepts in their business models or in their logic of value creation to various stakeholders. In this study, the authors regard strategy and business models as different constructs and argue that institutional pressures from NGOs and other governing bodies and associations as postulated by the Total Responsibility Management school of thought (encouraging the adoption of a good sense of CSR and CG) can be viewed as one of the inspirations behind the contingencies that affect a firm s (one which advocates this CSR business philosophy) intended strategy.Thus, making a firm s reactive CSR and CG compliance practices these contingencies.The authors use a case study approach of IKEA that greatly seems to advocate this concept of CSR and CG.The authors conclude this study with an argument that though reactive CG and CSR practices are good, a company that claims to incorporate the CSR philosophy in its business model or vision must also be proactive in its application.
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