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The Influence of CSR on B2B Relationships: Leveraging Ethical Behaviors to Create Value
Abstract
The chapter addresses how ethical actions deliver value through sustainable competitive advantage. Corporate social responsibility (CSR) has a proven role in developing audience trust that increases brand equity among target audiences, thus ensuring that the brand sustains its competitive advantage through improved profitability, increased social trust, and favorable reputation in the market. Not only do businesses have a social responsibility to the markets from which they earn revenues, but buyers expect ethical businesses to have an established CSR program in place. Socially fluent, publicly held firms that share their ESG (environmental impact, social impact, and governance) ratings with stakeholders enjoy the reputational benefits of increased trust and confidence regarding corporate ethical behavior. Businesses that engage in CSR activities within the process of corporate brand management experience stronger reputation that drives loyalty and sales, resulting in a competitive, sustainable market advantage.
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