Corporate Social Responsibility and Stakeholder Engagement for Sustainable Competitive Advantage: A Qualitative Franchise Case Study

Abstract

Corporate Social Responsibility (CSR) is becoming a strategic business activity that can help build ties with stakeholders and help ensure long term competitiveness. This was a qualitative case study that examined the perceptions and experiences of key stakeholders of a Philippine food-service franchise company regarding CSR practices and their effects on stakeholder engagement and sustainable competitive advantage. The sample consisted of employees, franchisees, customers, community partner and senior management that were purposively selected. Semi-structured interviews, focus group discussions and document analysis were used to collect the data which were analyzed with thematic analysis. Five main themes were identified. First, stakeholders saw CSR as a multi-dimensional, stakeholder-based approach that included employee welfare, customer safety, supporting the franchisee, responsible operations, environmental responsibility and community engagement. Secondly, CSR was meaningful when a stakeholder felt supported, protected, included and valued. Third, with transparency, consistency, responsiveness and inclusivity, CSR enhanced trust, commitment, satisfaction, participation, and collaboration. Fourth, stakeholder engagement was seen as engendering organizational reputation, employee commitment, customer loyalty, franchise development, community goodwill, and sustainable competitive advantage. Fifth, participants highlighted the importance of shifting the focus from activity-based CSR to strategic and institutionalized approach and the need for effective policy, stakeholder involvement, measurable goals, consistent implementation, communication, monitoring and impact assessment. The study indicates that the CSR can create sustainable value for the organization and can be transformed into the meaningful experiences of stakeholders in a food-service franchise environment in the Philippines in the long term. A strategic CSR framework including stakeholder engagement, implementation, measuring, communication and sustainable competitive position in the long term is suggested to enhance stakeholder engagement and sustainable competitive position of Philippine food-service franchise company.