Research Article, ISSN 2313-4747 (Print); ISSN 2313-4755 (Online) ); Prefix 10.18034 Copyright © CC-BY-NC 2014, Asian Business Consortium | AJTP Page 109 CSR Practices and Competitive Advantages: A Descriptive Study Md. Nur-E-Alam Siddique Senior Lecturer (Marketing), Faculty of Business, ASA University Bangladesh (ASAUB), Bangladesh E-mail for correspondence: nalomsiddiq@yahoo.com Cell Phone: +8801712441243 Received: Nov 22, 2014; Accepted: Dec 1, 2014; Published: Dec 14, 2014 Source of Support: Nil No Conflict of Interest: Declared ABSTRACT CSR is the managerial compulsion to defend and enhance both the welfare of society as a whole and the interests of the company. So, this study is an examination of the competitive advantages of CSR practice. This study is based on two theories; stakeholder‟s theory, which states that companies have essential groups that need to care of and the iron law of CSR, which states that companies that become failure to utilize their power responsibly will lose it in the long run. Reviewing prior studies it was found that a number of benefits proliferate to companies that practise CSR; numerous advantages were recognized. Among these others consist of: improved brand and reputation, decline in operation costs, attracting new customers, balances power with responsibility, discourages government regulation, improves a company‟s image, promote profits, superior relations with the investment groups and easier access to capital, improved employee relations, efficiency and innovation and stronger relations with society through stakeholder involvement. This paper concludes that there is a greater chance to be benefitted initiating CSR actions. Thus, it suggests that companies should try to provide due attention to CSR and this practice needs to consider as a continuous process. Keywords: CSR, Competitive Advantages, Brand Image, Social Welfare INTRODUCTION In the 21st century CSR as a business philosophy is gaining popularity. CSR is designed to build self- regulating system that enables the companies to screen and ensure effective compliance with the spirit of the law, international norms and ethical standards. CSR is the managerial commitment to protect and improve the social welfare as a whole, as well as the interests of the company. Management is liable for achieving goals or objectives not only within the companies, but also those for the social benefits. There are various areas in which management can try hard to meet up a company‟s objective and social benefit at the same time. One of the most significant areas may be management trying to achieve the company‟s goal of producing high-quality products. Producing high-quality products not only assists to boost the marketability of company products, but at the same time benefits society by offering consistent products. Another example would be a developer company which is trying to meet the company‟s goal of construct new flats for the poor under a contract with the government authority. The marketer not only is assisting to achieve company‟s commitment to the contract, but is concurrently transforming the company‟s community into a more socially satisfying position. CSR is the ongoing obligation for companies to act morally and contribute to socio-economic development side by side developing the excellence of life of the employees and their families, the stakeholders and society in general. The previous implies that CSR is about the coordination of social, environmental and economic considerations into the decision-making process of a company. It is about using innovativeness to explore resourceful and value-added solutions to societal and environmental challenges. It is about involving financial institutions and other stakeholders and communicating them to more successfully handle prospective uncertainty and develop reliability and conviction in society. Nolan, Norton and Co (2009), cited in Ali, Rehman, Yilmaz, Nazir and Ali (2010) note that corporate social responsibility is an approach whereby a company considers the interests of all stakeholders, both within the organisation and in society and applies those interests while developing its strategy and during execution. CSR offers companies various opportunities not only to differentiate themselves from competitors, but also, for reducing costs.