What does the instrumental view of CSR suggest?

The instrumental view of Corporate Social Responsibility (CSR) posits that organizations can achieve better financial performance by effectively treating their stakeholders. This perspective suggests that when firms adopt responsible practices and address the needs and concerns of their stakeholders—such as customers, employees, suppliers, and the community—they can enhance their reputation, build customer loyalty, and ultimately drive profitability.

By fostering positive relationships with stakeholders, companies can create a supportive network that can lead to increased sales, innovation, and operational efficiencies. Thus, treating stakeholders well is viewed not only as a moral imperative but also as a strategic approach to improving the bottom line.

In contrast, the notions of focusing solely on profit, treating all stakeholders equally, or viewing CSR merely as an obligation without considering financial gain do not align with the instrumental view. These options either ignore the interconnectedness between social responsibility and financial performance or misinterpret the role of stakeholder management in achieving sustainable business success.