Strategic Business Leader · Stakeholder analysis and organisational social responsibility

Corporate Social Responsibility and Sustainability for SBL

Updated 11 October 2026 · Fact-checked

Corporate social responsibility (CSR) is how an organisation takes account of its impact on society and the environment beyond legal duty. Sustainability is meeting present needs without harming future generations. The triple bottom line measures people, planet and profit. In SBL, you apply these ideas to the case and judge the organisation's stance.

Understand Corporate Social Responsibility and Sustainability

Corporate social responsibility (CSR) is the idea that an organisation owes duties to society, not only to its owners. It covers how the organisation treats employees, customers, suppliers, communities and the environment. Some of this is required by law. Much of it is voluntary.

Sustainability is about the long term. The common definition is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. CSR is about the organisation's responsibilities and behaviour. Sustainability is about the outcome: can this activity continue without using up the resources it depends on?

The triple bottom line (Elkington) widens how you measure success. Instead of profit alone, you report on three areas: economic (profit and financial health), social (people, communities, working conditions) and environmental (planet, resource use, emissions, waste). It is often summarised as people, planet, profit. Its main weakness is that the three areas are hard to measure on one scale, so they cannot simply be added together.

Organisations differ in how far they accept social responsibility. Gray, Owen and Adams describe a range of positions. At one end is the pristine capitalist view, where the only duty is to maximise shareholder wealth within the law. Next is the expedient view, where social action is taken only when it helps profit, such as protecting reputation. The proprietarian view accepts duties to those with a direct economic link, such as shareholders, and to property rights, and meets legal duties. The social contract view says the organisation has an implied contract with society and must meet society's expectations to keep its licence to operate. Further along are the social ecologist and socialist views and the radical feminist view, which place more weight on the environment and equity, and are rarely adopted by commercial companies.

In the exam, you are rarely asked to recite these. You are asked to show where the organisation sits, why, what the consequences are, and whether the stance should change.

Key rules to remember

Triple bottom line: Economic (profit) + Social (people) + Environmental (planet); Three areas of performance reported together. They are not summed into one number.
Sustainable development definition: Meet needs of the present without compromising the ability of future generations to meet their needs; Use this wording when asked to define sustainability.
Gray, Owen and Adams positions (in broad order): Pristine capitalist → Expedients → Proprietarians → Social contract → Social ecologists → Socialists → Radical feminists; Moves from shareholder-only focus to wide social and environmental duty. Know the first four well.
CSR versus sustainability: CSR = responsibilities and behaviour; Sustainability = long-term outcome; They overlap but are not the same thing.

How to solve Corporate Social Responsibility and Sustainability questions

Use this method for any SBL task on CSR, sustainability or social responsibility.

1Read the requirement and note the verb: assess, evaluate, advise, discuss or recommend.
2Pick the right model. Use Gray, Owen and Adams for stance, triple bottom line for performance, and sustainability for long-term impact.
3Find evidence in the case about how the organisation behaves: policies, incidents, spending, statements, culture.
4Place the organisation on the range of positions and give reasons from the case.
5Apply the three bottom lines to the scenario: what are the economic, social and environmental effects?
6Weigh costs and benefits, such as reputation, regulation, staff, cost of compliance, and risk of backlash from stakeholders.
7Give a clear recommendation tied to the requirement and the stakeholders affected.
8Write in the requested format and tone to earn professional skills marks.

Quickest way: Position, evidence, three bottoms, advice

When to use it: When time is short and the task asks for a view on the organisation's social responsibility.

Name the stance in one line, for example expedient or social contract.
Give two or three pieces of case evidence.
Add one point each on people, planet and profit.
Finish with a recommendation and the main stakeholder impact.

Common mistakes in Corporate Social Responsibility and Sustainability

Treating CSR and sustainability as the same thing.
They are used together in the media and overlap in practice.
Fix: State the difference: CSR is about responsibility and conduct, sustainability is about long-term outcomes and resource use.
Listing the positions without applying them to the case.
It feels safe to repeat the model from memory.
Fix: Choose one position, quote case evidence, and explain what it means for the organisation.
Treating the triple bottom line as only an environmental model.
Planet is the most visible of the three parts.
Fix: Always cover economic, social and environmental effects, even briefly.
Saying CSR is always a cost with no return.
Students follow the pristine capitalist view without questioning it.
Fix: Show both sides: costs of action, and benefits such as reputation, staff retention, lower risk and licence to operate.
Assuming the expedient view is the same as the social contract view.
Both involve some social action.
Fix: Expedients act only when it pays. Social contract organisations act because society expects it, even where short-term profit is hit.
Giving a generic answer with no recommendation.
Students run out of time or forget the requirement.
Fix: End with a clear, practical recommendation linked to stakeholders and the case.

Worked examples

Example 1

A mining company states in its annual report that it follows all environmental laws but will not spend more than the law requires, as its duty is to maximise returns to shareholders. A local community group says the company is damaging a river. Using Gray, Owen and Adams, assess the company's position and advise the board.

Show the solution

The company obeys the law but does no more, and puts shareholder returns first. This fits the pristine capitalist or proprietarian end of the range.
Evidence: spending is limited to legal minimums, and the stated duty is to shareholders.
Triple bottom line: economic performance may look strong in the short term. Social impact is negative because the community is unhappy. Environmental impact is negative because of river damage.
Risks: loss of licence to operate, fines, protests, reputational damage, and difficulty getting future permits.
Recommendation: move towards a social contract view. Engage the community, assess the river damage, set environmental targets above the legal minimum, and report on them.

Answer: The company sits at the pristine capitalist or proprietarian end, doing only what the law requires. This is risky given community anger and river damage. The board should move towards a social contract stance by engaging the community, reducing the harm and reporting openly.

Example 2

The finance director of a retail chain asks you to explain the difference between CSR and sustainability and how the triple bottom line could help the board measure performance.

Show the solution

CSR is the organisation's approach to its responsibilities to society and the environment, such as fair treatment of staff and suppliers.
Sustainability is about long-term outcomes: meeting present needs without harming the ability of future generations to meet theirs, for example through responsible sourcing and lower waste.
The triple bottom line adds social and environmental results to profit.
Examples for a retailer: economic (profit, return on investment), social (staff turnover, injury rates, supplier working conditions), environmental (emissions, packaging waste, energy use).
Benefits: a broader view of performance, better stakeholder information, and early warning of risks.
Limits: the three areas use different units, so they cannot be added into one figure, and some social measures are subjective.

Answer: CSR is about the retailer's responsibilities and conduct. Sustainability is about long-term impact and resource use. The triple bottom line gives the board measures for profit, people and planet, though the three cannot be combined into a single number.

Exam tips

Do not just define the terms. SBL rewards applying them to the case with clear evidence.
When asked about the organisation's attitude, name a specific position and justify it from the case, then say if it should change.
Cover all three parts of the triple bottom line when evaluating impact. Missing one is a common way to lose marks.
Link CSR to stakeholders and risk, such as reputation and licence to operate, to show commercial awareness.
End with a practical recommendation in the format asked for, such as a report or briefing note, to protect professional skills marks.

Practice questions from Stakeholder analysis and organisational social responsibility

Corporate Social Responsibility and Sustainability in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Corporate Social Responsibility and Sustainability: frequently asked questions

What is the difference between CSR and sustainability?

CSR is about the responsibilities an organisation accepts towards society and the environment. Sustainability is about whether activity can continue in the long term without harming future generations. They overlap, but CSR focuses on behaviour and sustainability on outcomes.

What is the triple bottom line?

It is a way of measuring performance across three areas: economic, social and environmental, often called profit, people and planet. It was developed by Elkington. It gives a wider view than profit alone, but the three areas cannot easily be combined into one number.

What are the Gray, Owen and Adams positions on social responsibility?

They describe a range of attitudes, from the pristine capitalist, who focuses only on shareholder wealth, to the expedient, proprietarian and social contract views, and on to social ecologist, socialist and radical feminist views. As you move along the range, more weight is given to society and the environment.

How do I use these models in an SBL answer?

Use them to analyse the case, not to recite theory. Pick the position that fits, back it with evidence from the scenario, explain the effects on stakeholders, and recommend what the organisation should do.