PA CSR - CSR as Competitive Edge

Corporate Social Responsibility (CSR) is a fundamental business philosophy and methodology that serves not only the wider environment, but also the best interest of the
organization itself. The sustainable success of a company depends on its recognition of its interdependence with the environment. Not only is it the right thing to do, incorporating the CSR principles as an integral part of the business operation enhances the competitive edge of the business and hence gives substantial growth opportunities for the company. In a specificmarket, history shows that conducive market environments, market development and competitive edge gained through partnership with all stakeholders, lead to sustainable growth, profit, and market leadership for the company responsible for the initial community education and development. Particularly in a developing country, it is important that these activities create sustainable wealth for the community as well. In the past, companies had thought that development of the market was the key to sustain growth. They have now realized that the future is very much linked to the society, the government and the environment in which it does business.

Globalization, especially in emerging markets, has changed the nature of the market trom that of a local market into a wider and more competitive one. If companies are to succeed, the products and services offered must have a global competitive edge. Furthermore, if the basic market is to be expanded, it must be conditioned to ensure that it is a favorable environment to attract further investment.

Within this fast changing environment and the pressuring global factors, a number of companies in emerging markets are able not only to survive, but also ensure sustainable growth by endorsing the incorporation of Corporate Social Responsibility (CSR) activities within the business strategy from the early stage of its development. Good Corporate Governance (GCG) – the incorporation of a culture that pertain to high standards of corporate behavior within the core business operation – and CSR – the interaction of the corporation and the external environment outside the core business operation – are becoming an increasingly important part of the business strategy. Good
corporate culture and human resources capability are major determinants of a company's success or failure and CSR activities are important tools to support the company's strategy, image and reputation.

From the macro perspective, business has little or no control over the government, industry, environment, society and now with globalization -the international community, but well defined and strategic CSR activities will strongly influence the market / community and its bigger system, whether