Responsible competitiveness: corporate responsiblity clusters in action

The authors of this report argue that the prevalent CSR focus on the 'business case' does not go far enough. The paper states that this argument, that provides an economic rationale for companies to invest in social and environmental performance, is limited. They argue that some CSR demands, such as providing cheap drugs to the poor, are incompatible with business models and therefore, that, it will be necessary to develop new markets in societies that reward responsible business practice.

The report looks at the relationship between CSR and competitiveness, pointing out that a nation or region's competitiveness is fundamental to its economic health which is in turn fundamental to sustainability. It states that CSR can be seen to be incompatible with competitiveness, in the case of low pay for workers being considered irresponsible but equally providing a competitive advantage for a country's manufacturing sector.

This report sets out to ask how CSR might be mainstreamed in ways that contribute to national and regional economic competitiveness. The authors assesses the potential for "Corporate Responsibility Clusters" to reshape sectors, markets and economies to ensure that responsible companies win out in the markets for products, labour and finance. The report identifies four types of Corporate Responsibility Cluster:

• challenge clusters
• market-making clusters
• partnership clusters
• statutory clusters

These characterise the way companies and other groups compete, collaborate or respond collectively to particular Corporate Responsibility demands. The report concludes that corporate responsibility clusters are critical in scaling up corporate responsibility practices by delivering both competitiveness and sustainable development outcomes and that public policy should encourage, map and support corporate responsibility clustering, nationally and internationally. [adapted from authors]

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