The field of corporate social responsibility (CSR) emerged as a part of the social movements of the 60's and 70's; civil rights, anti-war, consumerism, environmentalism and women's rights. This paradigm served as a catalyst for rethinking and restructuring the role of businessin society. CSR is a collective term for those voluntary activities a company does, which goes beyond their fiduciary duties.
This thesis will explore the interface of corporate social responsibility and organizational capabilities. This thesis argues that the competitive advantage of firms stems from dynamic capabilities embedded in the firm's processes, rooted in the ability to innovate driven by corporate social responsibility. Findings from case-studies as part of this research indicate that an important driver for implementing CSR initiatives is to operate with less risk.