ABSTRACT
This chapter explores and develops the argument that corporate social responsibility (CSR) is a regulation-dependent construct. It outlines the causal link between regulation and business advantage and why CSR has no meaning when removed from a regulatory context. Regulating too much to reduce negative impacts may constrain the strategic choices available to firms to maintain or increase levels of economic production. The inference is that CSR strategies for competitive advantage will require appropriate organisational structures to guide and support the building of core CSR capabilities. The ability of firms to respond to different regulatory instruments and to gain competitive advantage is strongly influenced by factors that change as firm size, sector and nation state vary. Regulation provides the necessary conditions from which business and competitive advantage can be gained. The justification for regulation and CSR relationship is explained by considering the following four: Regulation (low)-CSR activity (low), Regulation (high)-CSR activity (high), Regulation (low)-CSR activity (high), and Regulation (high)-CSR activity (low).
