Link between CSR and Strategy

Strategy tools: 5forces, swot, pestel

External effects of CSR on: competitors, industry, suppliers, political, legal,
stakeholders
Internal effects: Stakeholders, culture, value chain, clients

Resource perspective:
Core competency test: multiple markets, different customers

Industry perspective:
The most important determinant for competitive advantage: tool porters 5
forces
But both resource and industry perspectives miss some stakeholders like
political, employeesrequires new paradigm
How to prioritize stakeholders: How much influence measure

Stakeholder perspective:
Identify, prioritize (conflict between them is threat,

Model for prioritization:

2by2 Y axis: H to L Impact

X axis: H to L Influence (bargaining power

check- power)
Y:X (action): H:H Key players (manage closely), H: L Important (keep satisfied) ,
L:H Affected (keep informed), L:L Potential (monitor for change)

Tools to prioritize: vision, mission, pestel, swot, stakeholder: - CSV (create share
value)
How to integrate CSR: Utilize VRINE depend on resources, should deliver value
for both organization and CSR perspective
Examples of CSR which align with core operations: oil company spending on how
climate change effect oil
Example of McDonalds

Intensity of Issues: 4 stage of issue maturity

Latent ngo. Activists aware but little evidence- ignored by business,

Emerging- political/ media awareness, consolidated- litigations starting to

appear voluntary norms available, institutionalized-legislation or business
norms established.

Organizational Learning CSR: 5 stages

Zadeks tool: Y axis Organizational learning (Defensive, compliance, managerial,
strategic, civil)
X axis: Issue maturity (Latent, Emerging, Consolidating, Institutionalized)
Y:X (civil: Latent) high opportunity zone- green zone
Y:X (defensive: institutionalized) risky red zone

Problems with current CSR:

Not clear what to do, often organizational response is nor operational or
strategic, but just cosmetic one

Case: Walmart
Decreasing prioritys stakeholders: Employees, Suppliers, Activists, local
competitors
Is CSR strategic? Not really. Most activities are not relating to core competencies,
not long term oriented. They should look forward and act so
Bel: suppliers, employees, environment, government (Both Portugal and
EU),community, competitors, consumers