Sustainability is becoming increasingly competitive; that is a good thing and a bad thing!  Companies are starting to see it as a key factor to attract consumers, investors and talent, apart from being on the right side of the regulation.   As this scenario evolves, Corporate sustainability is no longer an ideal but a necessity.  That is wonderful news, even if the pace of that transition is slow!Now the bad news is that it takes more than a regulation driven mindset to gain a competitive advantage, and to stand out among the box ticking peers.  Other things being equal (read compliances and financial health),  what is the differentiator between peers when investors, potential employees and the consumers evaluate them? The timeless concept of CSR or Corporate Social Responsibility could be the key differentiator in the long term if executed effectively.   Let us explore why and how.   1. The driving force in corporate sustainability today is risk mitigation, which focuses on issues that negatively impact the business or are adversely impacted by the business. These are called negative externalities. An externality is a positive or negative outcome of an economic activity (the corporate's business) that affects other entities (the society) not directly related to that activity.While this risk mitigation outlook is essential for survival, it often blinds the companies to the other side of the coin; in tapping into the positive externality. This is a missed opportunity that CSR leverages.For example, let us imagine a country where the prisoners who have served their term are released into society with no support systems to help them reintegrate and rehabilitate.  There does not seem to be any material reason for an IT company or an FMCG company or for that matter for any Corporate to do something about this. However a corporate board or a CXO with foresight will see how in the long term a reduction in crime and reduction in exclusion of sections of society is good for the business. Because addressing this issue will keep their stakeholders including Government and consumers free from worry and perhaps financial burden.  By committing to this issue proactively, Corporates show their contribution to society positively and earn goodwill. In fact Singapore has the Yellow Ribbon Project which is addressing this issue.  The initiative invites private enterprises to partner with them for various programmes in creating awareness, generating acceptance and inspiring action to help ex-offenders integrate into the society and thrive. To quote another opportunity, a Financial Services Company will rightfully  prioritize efforts to prevent digital scams as it is deemed high risk.   It is nothing special.   But the same company could educate the general public on safeguarding against digital scams. An absence of such an initiative may not be missed. But a CSR program of this company working with community centres with ageing citizens on digital awareness becomes a key differentiator. It is important to acknowledge that while it’s impossible for a Corporate to address every societal issue, attempting to do so is not in anyone’s best interest.  Corporate social responsibility should be driven by both head and heart through a well thought out strategy: a CSR strategy that is aligned to its purpose & culture, kindles the passion of its teams and is able to leverage its resources (employees and their skills, technology, infrastructure, etc.).  Such strategic CSR will not only create societal impact, but build brand value among all its stakeholders and yield returns many times over the investment. As per a Harvard Business review article, Seventy-seven percent of consumers are motivated to purchase from companies committed to making the world a better place, while 73 percent of investors state that efforts to improve the environment and society contribute to their investment decisions.2. Corporate sustainability is a lonely and anxiety ridden journey. Sustainability professionals are burnt out. Departments within the Corporate are pitted against each other in chasing impossible targets. Worried about pushback from stakeholders, some Corporates resort to green hushing. CSR is a powerful game changer in this scenario. By design, CSR promotes collaboration by bringing diverse stakeholders onto the same platform.  Thanks to common and selfless goals taken in the larger interest of the society, CSR  offers a win-win strategy fostering cooperation. It breaks silos inside and outside the organization.  CSR is also provento improve job satisfaction of its employees including executives and improve employee engagement. In today’s times of talent scarcity, high attrition and quiet quitting, CSR should be the obvious choice for companies to create distinctive and lasting brand value with both internal and external stakeholders.3. Some statistics in the above quoted Harvard Business Review article are striking! Fifty-eight percent of organizations that currently have a strong and clear sense of purpose experienced 10 percent or more growth during the last three years. Creating value for the customer, positively impacting society, and inspiring innovation and positive change are the three top reasons impacting an organization’s purpose.The importance of purpose which feeds the organization culture need not be emphasized enough. It is the cornerstone of a successful Corporate. Culture is rooted in purpose, which goes beyond the balance sheet and market projection.  The corporate purpose answers questions including : What is it the world will lose when we are not here? What is success at the intersection of a company's well being and the well being of the large society and the planet? Culture is complex and elusive; a 70 hour work week or fat pay cheques cannot buy it.  Research has shown that Corporate culture and CSR are intertwined.  One leads to the other and is nurtured by the other. That said, CSR needs to be authentic and aligned to the corporate purpose to have an impact on the corporate culture.  While volunteering and donations are good places to start, there is much more to CSR in terms of choosing the cause, the geography, the intervention, the measurement of impact and the sharing.  Successful CSR requires a strategic plan and needs to be integrated into the DNA of the Corporate. 4. CSR not only elevates the spirit of employees but also the corporate sustainablity  reports. It helps Corporates 'show rather than tell' about their sustainability commitments and actions. For various reasons, most corporate sustainability reports rarely go beyond mandatory disclosures. And no one is going to put a corporate on a pedestal for disclosing no 'child labour' policy and for committing to reduce the pollutants discharged into water in their manufacturing facility. While all that action and data are important, the reports lack the soul. Suppose the same Corporate supports a civil society initiative to run a school for migrant workers' children, with a vision to provide quality education & safe space for the next generation of migrants. Where their 'end of life' laptops are put to use, and their employees are teaching soft skills to the kids in their free time. Or train farmers to switch to pesticide free farming and help them to market their produce. Where their e-commerce platform and marketing team are engaged for a purpose beyond their balance sheet numbers.These are powerful stories with real impact. They firmly establish the Corporate’s commitment to the Triple bottom line of People, Planet and Profit. Of course the whole thing will backfire if it is an effort to cover up the corporate's wrongdoings or a diversion tactic. Not just consumers, but regulators are also taking a strong view against Greenwashing.To summarise, CSR scores high in the sustainability endeavour of a Corporate because it  answers to the ‘WHY’ rather than the ‘What and How'. A well thought out CSR programme is not a knee jerk reaction to a supply chain problem or an oil spill. It comes from a deeper place of purpose and acknowledgement of societal obligation. It has outlasted and will outlast the ever changing regulatory requirements. CSR can help Corporates reclaim the belief ‘Business is a force for good!'. In doing so, CSR offers a chance for Corporates to navigate towards a blue ocean of sustainable competitiveness.