The world changes dramatically as each decade passes. These changes affect the population as a whole. The business world is no different. Resource scarcity, power outages and more complex labour unrest means that companies have to adapt expeditiously to survive presently. With the current gloomy economic climate it seems even more important for companies to take extra precautions to survive. Sustainability and corporate responsibility have gained greater meaning for the successful companies presently because of this volatile climate. They have become paradigms in their own right which companies must follow in order to transition to a new paradigm.
Corporate behaviour and responsibility is an area that must change. Presently, it is drafted into many companies’ business strategies as excessive exploitation of resources and environmental damage is being severely punished.
Owing to all these factors, CSR is now a necessity and there is widespread acceptance of this fact between major corporations. Change and transition to a new paradigm is pivotal. Companies need to do with less without causing environmental harm, otherwise survival would prove challenging.
An increasing amount of studies have been completed regarding the benefits of CSR. However, most studies concentrate on the benefits to society, while less attention is paid to the creation of value for organisations. In order to better understand CSR effects on value-added for the company, this study explores the impact of the triple bottom line of CSR (economic, environmental and social dimension) in a company case study, Covidien. Author keywords: Corporate social responsibility