LINK BETWEEN COMPETITIVE ADVANTAGE AND CORPORATE SOCIAL RESPONSIBILITY

By: Section D, Group 3 Abhishek Chopra Ankit Nahata Arun Singhal Mohit Gupta Rasik Pandita Sonia Agarwal 09P184 09P186 09P190 09P208 09P223 09P235

.INTRODUCTION Current scenario of CSR: y Reasons why efforts have not been productive Business vs Society Doing Generic CSR This article presents a new way to look at the interdependence of business and society. It shows that it is not a zero sum game.

Shell Oil. etc y Targeted by Activists They play an instrumental role in voicing public concerns y Eg Nestle y Governmental regulations y Eg In UK. most CSR for public relations and media . companies have to disclose environmental risk in annual report Currently.EMERGENCE OF CSR Reactive: Acting after public responses to social issues y Eg Nike. Pharmaceuticals companies.

Google in China ‡Meeting needs of present without compromising on future ‡Appeals to the same weakness: ideas share enlighten self interest. ‡Satisfying stakeholders.. Patagonia and Body Shop . communities and License to other stakeholders. Ben N Jerry·s. Mc Donalds Focus on tension between business and society rather ‡Tacit or explicit permission from govt. Mining ‡CSR initiatives to improve company image ‡Primary focus is to satisfy external stakeholders ‡Eg.JUSTIFICATIONS FOR CSR Moral Obligation SustainAll four ability operate Reputation ‡Companies have a duty to be good citizens ‡Honor ethical values and respect cultures while achieving commercial success ‡Eg. than their interdependence.triple bottom line ‡Eg. Dupoint.transfer primary control of CSR ‡Eg.

health care and equal opportunities are essential to a productive workforce y y Healthy Society Successful Companies No social program can create job. wealth and innovation better than successful companies They must follow the principle of ´shared valueµ .INTEGRATING BUSINESS AND SOCIETY Business and Society are interdependent y Successful Companies Healthy Society y Education.

Identifying the points of intersection Creating a social dimension to the value proposition Frame work Choosing which social issues to address Integrating inside-out and outsidein practices Creating a corporate social agenda .

Asbestos Outside-in Linkages ‡ External social conditions also influence corporations ‡ Every company operates within a competitive context ‡ Eg.Identifying the points of intersection Inside-out Linkages ‡ Company affects society through every activity in its value chain. Ability to recruit appropriate human resource. . ‡ These effects depend on ‡ Location Eg: Manufacturing in China vs US ‡ Time Eg.

CHOOSING WHICH SOCIAL ISSUES TO ADDRESS Social Issues Generic social issues Not significantly affected by a company·s operations nor materially affect its long term competitiveness Value chain social impacts Significantly affected by a company·s activities in the ordinary course of business Social dimension of competitive context Issues in the external environment. that significantly affect the underlying drivers of a company·s competitiveness in the locations where it operates Eg. Carbon emmission .

CREATING A CORPORATE SOCIAL AGENDA ‡ Good citizenship ‡ Mitigate harm from value chain activities ‡ Eg GE Responsive CSR: ‡ Transform value chain activities while reinforcing strategy ‡ Strategic philanthropy that leverages capabilities ‡ Eg Toyota Prius Strategic CSR` .

improving animal health etc.INTEGRATING INSIDE-OUT AND OUTSIDE-IN PRACTICES Integrating value chain practices and investments in competitive context makes CSR hard to distinguish from day to day business of the company. Eg: Works directly with small farmers to source basic commodities Built a dairy in Northern district of Moga Invested in educating farmers. .

Screening of food Purchase of renewable wind energy credits Environmentally friendly cleaning products Animal Compassion Foundation . Eg: Value proposition is to sell organic.CREATING SOCIAL DIMENSION TO THE VALUE PROPOSITION At the heart of any strategy is a unique value proposition. natural and healthy food products.

a long term investment in company·s future competitiveness.ORGANIZING FOR CSR Adjust organization. Incorporate value chain and competitive context investments in CSR into performance measures of managers with P& L responsibility Create shared value which should be viewed like R&D. reporting relationships and incentives Shift focus from an emphasis on image to emphasis on substance. .

Shifting from Corporate Social Responsibility to Corporate Social Integration .MORAL PURPOSE OF BUSINESS What CSR is about: Making philanthropic contributions Correcting what businesses have done wrong What CSR is about Finding a fit between strategy and social responsibility Creating shared value to lead to self sustaining solution.

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