Why a hierarchy-of-effects model is still the best approach to managing and optimizing the impact of corporate social responsibility strategies

Since the early calls for the use of a hierarchy-of-effects approach to assessing and then strategically guiding corporate management in its oversight of CSR endeavors by the enterprise, research related to CSR effects overwhelming shows many favorable social exchanges between CSR firms and relevant stakeholders. Given the attractiveness of CSR payoffs to the firm – but recognizing the resource costs also associated with CSR decisions – a renewed case is manifest for how corporate governance can better understand and optimize CSR efforts, all to the betterment of both the organization and its key stakeholders.