We will begin by looking at the instrumental approach to CSR.
This approach is characterized by its exclusive focus on the business case for CSR.
One should engage in CSR-practices if, and only if, they are, at the end of the day, profitable.
There are several ways in which such a connection can be construed. But essentially,
they almost always boil down to one and the same key idea, namely CSR as company branding. (Some) customers are likely to prefer buying from companies with a good reputation, and building up legitimacy in the eyes of consumers and NGO’s will reduce risk when or if the company is seen to step out of line on some issue. Likewise, a good reputation is important vis-a`-vis other key stakeholders, such as employees (current or future), policy makers, contract and business partners etc. In short, according to the instrumental perspective, CSR projects are to be evaluated on the basis of their propensity to make the company look good in the eyes of various stakeholders. CSR is a sophisticated marketing tactic in the company’s toolbox. Note that the instrumental approach does not imply that companies should ignore local or international legislation; it simply implies that companies should not go beyond the letter of the law and do good, unless such acts are expected to have a positive impact on the bottom line. Supporters of the instrumental approach might thus very well believe that companies should play by the laws and regulation set out by national governments and international forums like the UN and WTO.