**7. From corporate social opportunity to corporate social responsibility**

The turmoil of 2020 presented many challenges for companies as they tried to create economic value; but the events of 2020 also presented many corporations with social opportunities that might lead to economic value creation. We refer to this as corporate social opportunity, or how companies respond to economic and social shocks in the short-term. Examples of corporate social opportunity include adding women to a board of directors in response to the #MeToo movement, creating a new Chief Diversity Officer in response to Black Lives Matter or football teams around the world paying respect to health care workers who led the fight against Covid-19, without a long-term strategy that integrates those actions.

To be sure, capitalizing on corporate social opportunities is not necessarily wrong or bad; that's not the issue. The issue is more about authenticity, strategy and impact. Do the female directors have the same power, authority and ownership as the longerserving males or do they just meet a quota? Is the Chief Diversity Officer granted all of the power and resources she needs to exert true change and leadership or is the creation of the position just for public relations? And what message are those football players if, a few hours after paying respects at the beginning of a match, they are posting photos of a house party that is clearly violating all of the Covid-19 protocols that

the health care workers want us to follow? What is the message they send when they stop kneeling before matches?

From a strategic perspective, corporate leaders need to anticipate and plan for what they will do when the next social moment impacts their business models. Will they abandon these previous efforts and choose to ride the momentum of this window of opportunity? Doing so may create very short-term profits, but potentially at the expense of long-term strategy and at the expense of many valuable stakeholder relationships. Corporate social opportunity is a more expansive application of greenwashing to a broader universe of environmental, social and governance issues – and it can destroy enormous economic value.

CSO views opportunities through a short-term narrow window, while CSR is more embedded into a company's long-term strategy, culture and operations. Thus, the crux of our argument is that while it may be tempting for companies to capitalize on short-term opportunities instigated by social shocks, true and sustainable economic value is created over the long-term through a company's strategy, culture and operations.

Thinking and acting beyond corporate social opportunity is important for all firms, but it most critical for entrepreneurs and small businesses who have severely constrained resources and limited time – where being successful in the short term may be the difference between success and failure of the business. The costs of wasting resources to chase fleeting moments are magnified for small businesses. But so are the benefits of authentically integrating the dynamics of stakeholders and mission into strategic plans. What will these businesses lose if they do not authentically develop strategic plans that integrate the needs and desires of all stakeholders into their strategies? For too long, businesses have ignored the S in ESG as a unique creator of economic value. But we know that all economic value comes from people and how businesses enhance their lives and their wellbeing. Focusing on creating value for stakeholders will continue to be the secret to surviving future economic shocks that arise from social movements.
