Strategy and Society The Link Between Competitive Advantage And Corporate Social Responsibility (CSR)

1. Strategy and SocietyThe Link Between Competitive Advantage AndCorporate Social Responsibility (CSR) Learning Objectives: to understand some basic questions about CSR; to discuss the common justifications for CSR; to identify several models or frameworks to identify, prioritize and manage CSR impacts

2. Basic Questions SurroundingCorporate Social Responsibility Which companies are known for positive CSR activities? Which companies are known for negative CSR activities? What would economic theory (capitalism) say about CSR? The Porter & Kramer thesis – CSR efforts have not been as productive as they could be, because: • They pit business against society • Pressure managers to think about CSR in generic terms, rather than what’s appropriate for each firm’s strategy

3. Common Justifications for CSR • Moral obligation • Sustainability • License to operate • Firm reputation How do these justifications differ? How can they help a company manage its CRS impacts and initiatives? Porter proposes using the Value Chain and Diamond frameworks to identify CSR impacts

4. Porter’s Generic Value Chain Looking Inside Out: managing social impact of value chain activities

5. Context for Firm Strategy and Rivalry Factor (Input) Conditions Local Demand Conditions Related and Supporting Industries Porter’s Diamond Framework Looking Outside In: social influences on competitiveness

6. Firm Social Issues Firm Social Issues Firm Social Issues Prioritizing Social Issues Porter proposes the following classification scheme to prioritize social issues: Generic Social Issues Value chain Impacts Competitive Context Example of each type of social issue ?

7. Strategic Approach to CSR