the link between competitive advantage and corporate social responsibility
TRANSCRIPT
THE LINK BETWEEN COMPETITIVE ADVANTAGE AND
CORPORATE SOCIAL RESPONSIBILITY
Abhinav JainAbhishek TripathiDebashish Jena
Niraj MohanPiyush Jain
Shweta Bagrecha
INTRODUCTION
EMERGENCE OF CSR
LACK OF A COHERENT FRAMEWORK FOR CSR
C
orporate response has neither been strategic, nor operational, but
cosmetic with glossy CSR reports
P
hilanthropic initiatives gauged in terms of dollars or volunteer
hours, but not impact
L
ack of credibility of CSR ratings by Dow Jones Sustainability
Index, FTSE4Good Index etc
JUSTIFICATIONS FOR CSR
INTEGRATING BUSINESS AND SOCIETY
IDENTIFYING THE POINTS OF INTERSECTION
I
nside Out Linkages
O
utside in Linkages• Competitive context
• Quantity and Quality of available business units• Rules and incentives governing competition• Size and sophistication of local demand• Local availability of supporting industries
CHOOSING WHICH SOCIAL ISSUES TO ADDRESS
Social issues vary with competitive positioning
For similar issues, cooperative models used.
Eg The Extractive Industries Transparencies Initiative
CREATING A CORPORATE SOCIAL AGENDA
R
esponsive CSR• Good citizenship• Mitigate harm from value chain activities• Eg GE
S
trategic CSR• Transform value chain activities to benefit society while reinforcing
strategy• Strategic philanthropy that leverages capabilities to improve salient
areas of competitive context• Eg Toyota Prius
INTEGRATING INSIDE-OUT AND OUTSIDE-IN PRACTICES
CREATING A SOCIAL DIMENSION TO THE VALUE PROPOSITION
ORGANIZING FOR CSRA
djustments in organization, hierarchy and incentives
S
hifting from a fragmented, defensive approach to an integrated, affirmative
approach.
I
ncorporating value chain and competitive context investments in CSR to be
incorporated into performance measures of managers with P& L responsibility
C
reating shared value should be viewed like R&D, a long term investment in
company’s future competitiveness.
MORAL PURPOSE OF BUSINESS
THANK YOU!!!