Professional Documents
Culture Documents
By: Section D, Group 3 Abhishek Chopra Ankit Nahata Arun Singhal Mohit Gupta Rasik Pandita Sonia Agarwal 09P184 09P186 09P190 09P208 09P223 09P235
INTRODUCTION
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.
EMERGENCE OF CSR
Reactive:
Acting after public responses to social issues y Eg Nike, Shell Oil, Pharmaceuticals companies, etc
y
Targeted by Activists
They play an instrumental role in voicing public concerns y Eg Nestle
y
Governmental regulations
y
Companies have a duty to be good citizens Honor ethical values and respect cultures while achieving commercial success Eg. Google in China
Meeting needs of present without compromising on future Appeals to the same weakness: ideas share enlighten self interest- triple bottom line Eg. Dupoint, Mc Donalds
Focus on tension between business and society rather Tacit or explicit permission from govt., than their interdependence. communities and License to other stakeholders.
Satisfying stakeholders- transfer primary control of CSR Eg. Mining
CSR initiatives to improve company image Primary focus is to satisfy external stakeholders Eg. Ben N Jerrys, Patagonia and Body Shop
Education, 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
Frame work
Inside-out Linkages
Company affects society through every activity in its value chain. These effects depend on Location Eg: Manufacturing in China vs US Time Eg. Asbestos
Outside-in Linkages
External social conditions also influence corporations Every company operates within a competitive context Eg. Ability to recruit appropriate human resource.
Social Issues
Generic social issues
Not significantly affected by a companys operations nor materially affect its long term competitiveness
Responsive CSR:
Transform value chain activities while reinforcing strategy Strategic philanthropy that leverages capabilities Eg Toyota Prius
Strategic CSR`
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, improving animal health etc.
Value proposition is to sell organic, natural and healthy food products. Screening of food Purchase of renewable wind energy credits Environmentally friendly cleaning products Animal Compassion Foundation
Shift focus from an emphasis on image to emphasis on substance. 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, a long term investment in companys future competitiveness.
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