Doing well by doing good: Strategic development of socially responsible behavior can build reputation, strengthen knowledge management and drive innovation

Abstract

Purpose

This article aims to describe how one company has used an ethical approach to strengthen a competitive position based on knowledge management and technological innovation.

Design/methodology/approach

The article presents a case study of Indra, a leading Spanish technology company, showing how it has integrated corporate social responsibility within its strategic objectives.

Findings

What can you do to get and keep that competitive edge? One firm thinks it has found the answer by incorporating ethical behavior and corporate social responsibility (CSR) into every aspect of its activities. It seems that a corporate culture focused on ethical behavior can improve your standing and reputation inside and outside the company, so that employees, shareholders and communities at large see the organization as ready to do the right thing, rather than motivated exclusively by making money.

Practical implications

The article explains how basing competitive advantage on ethics and social responsibility can benefit stakeholders and improve long‐term profitability in a technology‐driven company. It shows how embedding ethical considerations and CSR as a basic aspect of strategy development and communicating this approach to stakeholders affects employee motivation and behavior, together with company reputation.

Originality/value

The article demonstrates the connections between corporate social responsibility initiatives and human resource development in an organization reliant on knowledge management as the basis of innovation.

Citation

(2011), "Doing well by doing good: Strategic development of socially responsible behavior can build reputation, strengthen knowledge management and drive innovation", Strategic Direction, Vol. 27 No. 11, pp. 30-32. https://doi.org/10.1108/02580541111177548