Profitable Responsibility

How can corporations contribute to social welfare? This paper shows how corporations have unintentionally contributed immensely to social welfare since the industrial revolution as producers, employers, and tax payers. This is their primary purpose in society. However, corporations can further contribute to social welfare intentionally by engaging in win-win CSR that benefits both the corporation and society. It is easy to understand how CSR regarded as risk management can help corporations avoid a loss of revenues. But how can CSR increase revenues? The paper shows through the application of corporate strategy theories how corporations can draw on their present competences to find new opportunities that are of benefit to both society and the bottom line. This is exemplified by looking at cases from Tetra Pak and SAS Institute. David Ronnegard is an economist and philosopher (PhD from the London School of Economics).