Corporate Social

Responsibility and
Strategic Management
Akshat Heera Chhabra
0223
MBA PM-12
CSR + Strategic management
• Strategic Management, defined as the dynamic process of formulation,
implementation, evaluation and control of a firm’s strategies (e.g., revenue
growth)
• On the other hand, corporate social responsibility is a form of management in
which companies take the ethical aspects of their business operations into
consideration
• Firms incorporate social concerns into their business strategies to highlight that
they are conscious of their roles in society and their communities outside of
business
• Thus, CSR transforms and evolves from being a ‘goodwill company’ concept into
becoming a ‘business function’, a ‘strategic management’ component of central
importance to firm level success
CSR is both critical and
controversial
• It is critical because it becomes the largest and most
innovative part of the for-profit sector of any free
society’s economy

• It is controversial because some see CSR as a

distraction from the economic purpose of a business

• Today’s companies ought to invest in CSR as part of

their business strategy to become more competitive
Aspects of CSR in SM
• More than just obeying the law, corporate social
responsibility involves a business taking proactive steps to
improve the quality of life for its employees and
community

• Different companies will select a different social

responsibility strategy from each other, but they all focus
on four core aspects of business strategies:
Economic
Ethical
Legal
Philanthropic
Economic Social
Responsibility
• An economic social responsibility strategy begins with
making sure a company is sustainable, profitable,
satisfies its shareholders, and pay its employees a
respectable wage

• Addresses issues such as gender wage discrimination,

paying appropriate business taxes and meeting other
financial commitments

• Likewise, corporate economic responsibility includes

businesses finding inefficiencies in their operations
that waste capital
Ethical Social Responsibility
• Inside the workplace, this could include paying a
living wage, ensuring safe working conditions, and
being willing only to do business with companies
with similar ethical principles – e.g., not purchasing
products from a factory that uses child labor

• Taking into consideration a company's environmental

impact and doing its job to limit forms of waste

• Companies should analyze the processes they use

and proactively do what they can to reduce their
environmental impact
Legal Social Responsibility
• The legal segment of CSR revolves around making
sure that companies are aware of and abide by all
local, state and federal laws

• Companies must comply with safety and labor laws

put in place by regulators

• Being mindful of legal obligations can protect a

company's reputation and limit the amount of time
and money it must spend in potential legal fees
Philanthropic Social Responsibility

• Corporate philanthropic responsibility involves using

a company's time and resources to make
investments in the communities where they operate

• These investments could be in the form of

scholarships and other educational assistance, or
other notable local causes

• It is common for large corporations to have in-house

departments that manage and coordinate the
company's philanthropic efforts
Thank You…