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.