How CSR can make a great impact in establishing and growing a industry can be easily understood through this article and its presentations.

1. Article Presentation on " Strategy and Society:
The link Between Competitive Advantage and
Community Social Responsibility" : Michael E.
Porter and Mark R. Crammer, Harvard Business
Review,Article No.76, Dec 2006, www.hbr.org
Presented By:
Pawan Kumar Poudel
Key Note speaker:
Assist. Proff. Ramesh Ghimire

2. Strategy and society: The
link between competitive
advantage and CSR

3. What to expect
• How the hapazardous and Fragmented CSR can be
made more productive
• How CSR can be a method for adding values to
company
• How society and corporations can work together
for a greater good

4. Emergence of CSR
• In 1990s Nike faced consumer boycott
• Pharmaceutical companies are expected to respond
to pandemics

5. Why we don't need CSR ?
• It gathers unnecessary attention towards company
e.g. Nestle, largest seller of bottled waterwater
• Government is passing laws to release CSR reports
which are more cosmetic rather than strategic.
Philanthropic activities are measured on dollers
rather than social impact

6. Why do we need CSR ?
• Moral Obligation : Be a good citizen and do right
thing
• Sustainability: emphasis on environmental and
community safety
• Licence to operate: Governmental Authorization
• Reputation : strengthen company's image and
brand

7. IN PRACTICE
• Moral obligation involves involves balancing
competing values, interests and costs.
• Sustainability works best for issues that coincide
with company's economic or regular interests e.g.
Mc Donalds food rappers
• Good employment practices are more sustainable
than sweatshops

8. IN PRACTICE
• Licence to operate is not practical and forces to
take short term defensive reactions which are
never ending
• Reputation: In theory it seeks strategic benefits but
in practice it has indirect response to consumers
and can't be measured

9. Why CSRs aren't productive?
• All four regions focus on tension between business
and society rather than their interdependence
• Each creates a generic rationale that is not held to
strategy and operation of any specific company or
to places in which it operates

10. Consequences of unproductive
CSR activities
• No social impact
• Limited growth of corporations

11. How to make CSR productive
• By Integration of business and society
• WHY MUST WE INTEGRATEINTEGRATE
• Corporates benefits
• successful corporations need a healthy society which
provide productive workforce
• Healthy society creates expanding demand for
business as more human needs are met and
aspirations grow

12. • SOCIETIES BENEFITS
• successful companies creates more jobs wealths
and improve standard of living
• Society is exposed to new innovations and
technologies

13. Identifying points of integration
• The interdependence can be of two forms
• INSIDE OUT LINKAGES : Companys impact
• Every activity in company's value chain touches
communities in which it operates either
positively( creating jobs, high wages, paying taxes)
or negatively ( emissions and waste disposal

15. Let's Review
• EMERGENCE OF CSR
• WHY/ WHY DONT WE NEED CSR
• WHY CSR AREN'T PRODUCTIVE
• CONSEQUENCES OF UNPRODUCTIVENESS
• HOW TO MAKE CSR PRODUCTIVE
• WHY MUST WE INTEGRATE
• INTEGRATING POINTS

16. Choosing which social issue to
address
• CSR must be guided by opportunity to create shared
value rather than its worthy or not
• Social issues are of three types:
• Generic social issues : They don't affect company's
operation and long term competitiveness
• Value chain social impacts: those areas that affect
company's activities in ordinary course of business

17. • Social dimension of competitive context: They are
factors in external environment that significantly
affect underlying drivers of competitiveness in
those places where it operates
• Thus addressing social issues by categorizing them
and making a shared value rather then fragmented
philanthropic actions
• E.g. carbon emission/ global warming, health
benefits

18. Creating a corporate social agenda
• Categorizing helps create social agendas which
looks beyond community expectations to
opportunities to achieve social and economic
benefits simultaneously. Social agendas an lead to
• Responsive CSR: as a good citizenship and
mitigating harm arising from a firms value chain
activities

19. • Strategic CSR:
• Its about choosing a unique position i.e doing
things differently from competitors in a way that
lowers costs or better serves a particular set of
customer needs
• Strategic CSR helps unlock shared value and the
success of community and company
• Integrating inside out and outside in practices
makes CSR hard to distinguish from day to day
business

20. Examples of strategic CSR
• Microsoft working connections partnership with
American Association of Community colleges to
deal shortage of IT positions ( $ 50 million initiative)
• Nestles Milk District
• Toyotas.Prius, hybrid electric/gasoline vehicle

21. Organizing for CSR
• Integrating business and social needs more than good
intentions and social leadership
• It requires adjustments in organizations , reporting
relationships and incentives
• Company must shift from fragmented,defensive posture to an
integrated and affirmative approach so there is social impact
rather than stakeholders satisfaction
• Few social issues that provides opportunity for community and
company growth should be taken and a real difference must
be made