Loud in the Crowd: Differentiated CSR as a Source of Competitive Advantage

We join the scholarly conversation on firms pursuing differentiated versus generic corporate social responsibility (CSR) to achieve competitive advantage (Nardi et al. 2022; Zhang et al. 2020). Building on distinctive competence logic, we theorize that firms can command higher corporate social performance (CSP) by differentiating their CSR from industry competitors. We further argue that this positive impact of differentiated CSR will be accentuated in industries with higher CSR density. Our results support all hypotheses, demonstrating that differentiated CSR enhances CSP above and beyond generic CSR effects, with this relationship amplified in high CSR density industries. This study contributes to the CSR literature by: (1) identifying differentiation as a fundamental mechanism linking CSR to performance outcomes, (2) focusing on the first‐order CSR‐CSP relationship, and (3) demonstrating how industry context determines when differentiated CSR creates greater competitive advantage. The findings provide key insights for understanding how firms can develop CSR strategies that deliver both social impact and strategic value.