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Ways To Gain Firms Reputation And Competitive Advantage From CPA, CSR And Trust

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The following article describes that firm’s competitive advantage depends on successful market and non-market strategies. Mayer states that market strategies are long term strategy with specific goal leading to advantage while non market strategy are based on social and political ways to achieve goals. It is an interesting article because it clears that Non market strategies are based on two premises, (a) beyond market which influences firm’s position and (b) core business activities within market. Success of non-market strategies and potential synergy depends on two key elements Corporate social responsibility and corporate political activity i.e. CSR and CPA.

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Firms can showcase with CSR strategy, yet firms are financial elements, as well as they are political and social performing artists as well. There are some political intervenes which are necessary in some cases called as Corporate political activity. Corporate political activity can be defined as political activities which reshape policy and benefits firm (Hillman 2004).

CSR is related to social work or responsibilities of firm for society. Corporate social responsibility depends on moderate trust. This moderate trust helps in influencing people which interns firm to perform Corporate political activity. Trust is major concept and its major strength as it helps firms to combine CPA and CSR.

Fooks states that CSR and CPA are interrelated to each other and they lead to better economic performance because of their complementary nature. They both together have a great impact on every factors of organization. Sun and Zheng believe that firm are actively engaged in corporate responsibilities and political activities with non-market partners and then they may produces positive outputs such as profit maximisation for organisation and their goodwill. CPA is an important factor because it leads to decide organizations future policy and results. When CPA increases as compared to CSR, the output gathered from political exercises shift to negative impact and thus it can be questioned for long run of organization (Bucheli 2012).

Strength and weakness

Mayer has shown that Trust is based on three dimensions i.e. Benevolence, integrity and ability and it must exist in relationship between firms and polity. Another aim of article is to address gap through which CSR and CPA influence government policy. CSR has no impact on policy outcomes while CPA has limited effect in issues of low salient features. CSR and CPA should be aligned together to have effect on salient policy issues. The main point discussed was huge development funding gap can be filled by CSR. The overall study gives brief evaluation of two points:

  1. How CPA and CSR help to develop trust between firms and policies and this helps in increase in contribution of firm’s trustworthiness in political areas.
  2. The second contribution of study reflects how market and non-market behaviour helps firm to grow to the extent of their productivity.

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