CSR Threshold determines the timing as to when and where the CSR should be undertaken in the organization. The threshold determines whether the organization is ready to pursue the policy or not and thus its implementation. The threshold enables the business entity to relate its core business and expectations of the society. Different organizations have varied CSR threshold due to the culture of the organization, competition levels in the industry and nature of the services and products offered. Implementation of the CSR policy varies from the organization to organization, for instance the current environment and the attitude of top management towards the CSR affects the threshold. In most manufacturing firms CSR threshold does not change due to environmental factors like the service industry where the attitude of the top management determines extent of participation in social activities.
The threshold is also determined by strategy adopted by the management, for instance most companies tend to adopt CSR for defensive purposes to ensure compliance and avoid public criticism this scenario was evidenced by Nike in the early 1990s when civil activists criticized the working conditions and mistreatment of workers.
Managers of the organization may also adopt CSR as innovative tool that enables it to interact with and serve their customers and stakeholders in a different service dimension in such a case the value of the CSR is to foster good business relations with society. The approach enables a firm in a given industry to approach the issue as an element for securing competitive edge over the rival firms.
Companies that adopt CSR as an innovative tool for improvement of service delivery and customer satisfaction stand the better chance to win the acceptance and confidence of the civil societies, the government and the people in the society.