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CSR

Corporate social responsibility (CSR) is about companies balancing economic, environmental, and social impacts. Traditionally, CSR was seen as disconnected from business strategy and a cost to companies. However, a new approach views CSR as a strategic investment when integrated into a company's core operations. This can provide both social benefits and competitive advantages for companies. Effective CSR moves from just mitigating harm to finding ways to advance social conditions while also reinforcing corporate strategy. Companies implement CSR through initially responsive efforts, and then more strategic initiatives that lower costs or better serve customer needs.

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Arun Golar
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232 views

CSR

Corporate social responsibility (CSR) is about companies balancing economic, environmental, and social impacts. Traditionally, CSR was seen as disconnected from business strategy and a cost to companies. However, a new approach views CSR as a strategic investment when integrated into a company's core operations. This can provide both social benefits and competitive advantages for companies. Effective CSR moves from just mitigating harm to finding ways to advance social conditions while also reinforcing corporate strategy. Companies implement CSR through initially responsive efforts, and then more strategic initiatives that lower costs or better serve customer needs.

Uploaded by

Arun Golar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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The Link Between Competitive Advantage and

Corporate Social Responsibility


What is CSR?
Corporate Social Responsibility is a
management concept whereby companies
integrate social and environmental concerns
in their business operations and
interactions with their stakeholders.

CSR is generally understood as being the


way through which a company achieves a
balance of economic, environmental and
social imperatives (“Triple-Bottom-Line-
Approach”)
Relationship between business and social welfare
Old School of thought New Approach

• CSR is fragmented and disconnected from a • Business integrates CSR into the core
firm’s strategy. frameworks it already uses to
understand competition and guide its
• CSR is a cost, a constraint, or a charitable deed. business strategy.

• CSR is a PR and media campaign as a reaction to • CSR is seen as a strategic long-term


appease stakeholder demands based on benefit and short-term investment
activities carried out by the firm that are instead of a cost.
adversely affecting society.
• CSR is integrated into the values of the
• CSR is outsourced to external agents such as non company and drives employee passions
for profits and NGOs. and pride to participate in the activity.

• CSR is done to fulfil a legal obligation when • Even though NGOs help guide CSR
companies are penalised to do so. mandates to real world solutions, the
company takes the strategic lead with
• CSR is tactical with no measurable outcomes. better understanding of every activity
in the value chain and competitive-
• CSR is limited to a set of best practices and moral context.
behavior down the companies supply chain
Implementing CSR

A corporate social agenda looks beyond community expectations to opportunities to


achieve social and economic benefits simultaneously. It moves from mitigating harm
to finding ways to reinforce corporate strategy by advancing social conditions.

Step 1: Responsive CSR

Here a company is acting as a good corporate citizen, attuned to the evolving social
concerns of stakeholders, and mitigating existing or anticipated adverse effects from
business activities.

• Includes a set of best practices or checklist to mitigate adverse effects along


the supply chain
• Adhering all legal and moral requirements

Step 2: Strategic CSR

It is about choosing a unique position – doing things differently from competitors in a


way that lowers costs or better serves a particular set of
customer needs.
Examples of Strategic CSR

• Googles management of its server space and infrastructure where most of it is


100% powered by renewable energy.

• Nestlé’s approach to working with small farmers exemplifies the symbiotic


relationship between social progress and competitive advantage.

• Marriott providing 180 hours of paid classroom and on-the-job training to


chronically unemployed job candidates. The company has combined this with
support for local community service organizations, which identify, screen, and
refer the candidates to Marriott. The net result is both a major benefit to
communities and a reduction in Marriott’s cost of recruiting entry-level
employees.

• Microsoft’s investment in training and development of students from community


colleges in the US that are later employed by Microsoft.

• GE’s program to adopt underperforming public high schools near several of its
major U.S. facilities. The net result is goodwill with the governing bodies and
employee engagement opportunities that increase pride and loyalty among staff.

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