Evolution of corporate social responsibility standards and their implementation in the strategies of the most powerful corporations: Guidelines for the CSR 5.0 concept

Abstract

Objective: The objective of the article is to assess the advancement of social responsibility (CSR) models of the most powerful transnational corporations (Top TNCs) in terms of the implementation of CSR principles in accordance with the idea of creating of Creating Shared Value (CSV). Additionally, using the concept of the Grounded Theory Methodology (GTM), to create guidelines for CSR 5.0. for the creation of CSV by companies. Research Design & Methods: The paper, apart from literature review and its critique, presents the results of an authorial survey. The author conducted in-depth studies – using the Multidimensional Statistical Analysis, the Strategic Analyses. The paper presents the results of research (2010-2021) on the strategies of the Top TNCs. The list of key values constituting the pillars of companies’ strategies was prepared based on the GTM on the basis of Top TNCs case studies (the ten strongest players in each sector) operating on a global scale in various industries: automotive, electronics, pharmaceutical, consumer goods. The quantitative research of economic indicators and the qualitative analysis of 480 annual reports focus on the assessment of the implementation of the principles of sustainable development to improve the company’s ability to create CSV, and thus its competitive ability in the long term. Findings: The original CSR 5.0 model was designed, adequate to the challenges of the 21st century related to the creation of CSV. The model was constructed on the basis of CSR principles disclosed as universal and included in the strategies of the Top TNCs studied and related to three layers of their intellectual capital (IC). With the use of GTM, a set of key values (three for each layer) was established, constituting the pillars of CSR 5.0, i.e. CSR for business models focused on CSV. Implications & Recommendations: The emphasis on the creation of CSV is a requirement of 21st century competitiveness, which was confirmed by research for world leaders in four sectors. This is best seen in the area of innovation. The changes also concern the organizational and relational spheres. It is recommended to use the indicated directions of changes to prepare also other companies for new challenges. The CSR 5.0 model indicates the key areas of ICs of companies as requirements for securing long-term sustainable development (including in the era of automation and digitization, e.g. thanks to the personification of goods and services). Contribution & Value Added: The paper presents an innovative approach pointing to the close relationship between intellectual capital – the implementation of CSR activities – long-term competitiveness as the ability to create CSV. Based on extensive research, the key elements of IC have been identified, reflecting the implementation of CSR in the innovative, organizational and institutional dimensions.

Keywords

• corporate social responsibility
• Creating Shared Value
• CSR
• corporations
• Society 5.0