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Strategic Management and CSR

João Pereira
Josefin Nystrom
Lubo Kruzliak
Mohamed Meeran

CSR is defined as “the responsibility of

enterprises for their impacts on society”.

More specifically, CSR is used to maximize

the good and minimize the bad effects a
company has on their stakeholders diverse
interests.

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Recruitment Retention .

Limit unwanted attention Improve reputation due to current events .

CSR can help build customer loyalty based on distinctive ethical values .

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Philanthropic Desired by society Ethical Expected by society Legal Required by society Economic Required by society .

Philanthropic Desired by society Ethical Expected by society Legal Required by society Economic Required by society .

Philanthropic Desired by society Ethical Expected by society Legal Required by society Economic Required by society .

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Corporate Philanthropy .

or international • Various donations • • • • Financial donations Tangible goods – food. medicine.• A way of giving back to the community • Local. regional. national. own products Company time Fundraising from others . computers.

Usually done through a corporation directly or a corporation’s own non-profit entity. .Corporate Philanthropy • • • • Focus on the treating the cause of a problem or issue instead of the symptom. Funding mainly comes from the company’s contributions and are usually treated as a business expense Allowed to deduct up to 10% of pre-tax income for direct charitable contributions Most companies deduct about 1%.

Corporate Philanthropy ◦ Benefits: • Indirectly enhancing a company’s brand and image. better recognition • Improved employee engagement ◦ -> higher retention rate = employees who enjoyed their workplaces were less likely to leave • Company’s bottom line ◦ -> it will spend less on recruiting. hiring and training new employees .

Purely for Pets • All natural pet food company • Donates 1.freekibble.com .Corporate Philanthropy ◦ Example: Halo.5 million pet meals per year • www.

architects. contractors.Corporate Philanthropy ◦ Example: Reed Construction Data • construction information business • “blitz build” event each year • 100+ volunteers.S. we make their lives easier and more comfortable. generous sponsors and volunteers from across the U. consisting of employees. engineers. to renovate or restore a facility or shelter • “Many of these individuals are veterans who have nowhere else to turn. “ . leading manufacturers. Working together.

e. to make as high a profit as possible? . i.CSR vs Company goals Does CSR interfere with companies prime reason for existing..

CSR vs Company goals ◦ ITC .India Tobacco Company .

CSR vs Company goals ◦ AcadeMedia • 70 000 students • € 15 million profit • Is AdadeMedia’s main goal to earn as high a profit as possible? .

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Indian center for science and environment certified green rating for the paper and pulp industry. 1.but were able to recycle 81 per cent of that waste. ITC luxurious hotel electricity bill went up to RS. . immediately consultant hired and they have reduced their energy consumption by alternative energy sources like solar power. The group generated over 28 lakh tonnes of solid waste last year . 3. 2.What is the reason for the ITC to engage in all these corporate responsiveness is it a real social consensus or personal relation(PR). wind energy it helped them to reduce 20 percent drop in their electricity bill.70 Million.

and when to reap to get the best returns.000 hectares under plantation. how much fertiliser they should put in. More importantly. And company executives say that with 50. And it supports the farmers by offering advice on how to grow the trees. Massive human programme in which ITC has roped in over 30.1. ITC might even be willing to pay a higher price to farmers who are near the paper mill since it saves them expensive transportation costs . it guarantees that it will buy back the wood after four years at the prevailing market price. offering them an alternative livelihood.000 farmers. it is more than enough to meet most of the needs of the paperboard plant. 2. The company offers saplings at Rs 6-8 each to plant on their land.

contraband products. Challenges in the market due to smuggling. distortion in the tax system as applied to the cigarette industry. Tremendous opportunities for growth in the cigarette industry 1.Prime reasons for its existence is a profit not the social consensus Opportunities and challenges in the cigarette industry in India. ITC Limited as a dominant player in the industry with a significant dependence on tobacco and tobacco products promising to pursue the triple bottom line approach by focusing on economic. Due to the health hazards associated with cigarette smoking. and other issues. environmental and social value. Any decision to stop producing and selling cigarettes has negativei mplications for the business? . 2. and restrictions on smoking placed by new legislation.

What do you think ? Should the company invest on research on health problems caused by the consumption of tobacco and cigarette smoking? 2. Would you suggest to progressively work towards winding down the cigarette business? If it is what are the opportunities and threats .1.

ITC has a strong and experienced management Threats 1. 5. 3. 3.Opportunities 1. More publicity of hotel chains to increase market share. Can concentrate on FMCG market since they have established brand name. 2. 2. Having high government taxation and regulation for tobacco business FDI investments allows international brands in the market Intense and increasing competition amongst other FMCG companies and hotel chains . 4. Mergers and acquisitions to strengthen the brand Excellent research and development facilities.

which is more or less recession-proof and is a near monopoly.330 crore. ITC.asp?lang=en .scandic-campaign. saw its shares rise 2 percent. ITC.posted a 24 percent growth in the net profit at Rs 1. HUL has no such monopoly. saw sharesdecline 1 percent recently. 2. ITC’s strength comes from its cigarette business. while HUL.The listed cigarettes-to-consumer goods conglomerate. ITC can make a big impact in their hotel business sector like the scandic hotels http://www.1. the largest consumer company.com/livereport/default. 3. HUL posted a 18 percent growth in the net profit at Rs 627 crore.

What is your views about the Sweden decision to give the major control to the private players? . 3. Sweden has entrusted major share of its children’s education to the private companies.Friskola (free school ) 1. social care and safety is on red line. Effective policies on students health . Sweden governance believes market competition was the best way to improve results. 4. 2.

is it ok? Is it okay to make a profit from tax money. what would you recommend the monitory board to control this kind of practices? . if you provide good quality education? Denmark based JB education went bankrupt and caused panic among its 10. 4.1. 3.30) per child per day. Is this a risk willing to take? Hälsans chain of preschools got into the scam. 2. they cut down the foods budget to SKr9 ($1. Lessons are being conducted in malls.000 students and 1000 staffs.

AcadeMedia Chief Executive Marcus Stromberg said.run schools. 2. or SKr528m a year before tax. 1.1." . Acade Media makes about 7 per cent profit. Prioritizing investments on infrastructure development and lab facilities. on its schools and preschools. 2. High Teachers ratio resulted in low salaries for faculties as compared with the state. I sincerely hope we won't see any more bankruptcies. "I think we will see a continued consolidation of the sector. but you can't guarantee it.