The Role of Dynamic Capability in Business Legal Compliance and CSR Implementation

Abstract

Dynamic capability is the capacity of an organization to adapt and respond to changes in the dynamic business environment. In the context of business legal compliance and corporate social responsibility (CSR) implementation, dynamic capability plays an important role in ensuring that companies remain competitive and sustainable. This article discusses how companies can utilize dynamic capability to face business regulatory challenges and improve the effectiveness of their CSR programs. With a qualitative approach based on literature studies, this study finds that companies with strong dynamic capability are better able to adapt to regulatory changes and increase the social impact of their CSR activities. These findings provide strategic insights for company management to design adaptive and innovative sustainability policies amidst today's global complexity.