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Strategy & Society

The Link Between Competitive Advantage


And Corporate Social Responsibility

GROUP-6
Darpan Thakkar(9)
Gagan Sharma(16)
Kritika Pruthi(23)
Group Priya Doshi(35)
Rashika Sardana(38)
members Ronak Rajpurohit(43)
Siddharth John(50)
Vatsal Shah(54)
Corporate Social Responsibility
Emerging sense of responsibility(CSR)

Corporates, now hard press by activists and organization to do their bit


for the society.

An intensive debate explodes and the corporates finally respond.

CSR exploited as an opportunity and a few beautiful words on the


company's website.

With the debate still on and multi-billion dollar conglomerates defining


and coining new terms, there is a start.

CSR a way of companies to give to society and achieve their goals.


Prevailing justification for CSR

Moral Obligation

Sustainability

License to Operate

Reputation
Integrating Company and Community
• There is an inevitable link between business and society

• A healthy business depends on a healthy community to create demand for its


products and provide a supportive business environment

• A healthy society depends on competitive companies that can


create jobs, support high wages, build wealth, buy local goods, and pay taxes

•There is a long-term synergy between economic and social objectives

Integrating Company and Community


Social
Development
Company
Competitiveness
The Value Chain and Shared Value

Firm Infrastructure
(e.g.financing,planning,investor relations)

Human Resource Management


(e.g. Recruting,Training,and Compensation

M
System)
Technological Development

ar
gi
(e.g. Product Design, Market Research, Process Design)

n
Procurement
(e.g. Components, Machinery, Advertising, Services
Logistic
Inbound

Operations

Logistic
Outbound

Sales
and
Marketing

Service
After Sales
Competitiveness and the Business Environment
Context for Firm
Strategy and
Rivalry

Local rules and incentives that


encourage investment and


productivity

Factor
(Input ) Demand
Conditi Open and vigorous local

Conditio
competition
on
Access to high quality
• n
and efficient business Size and sophistication of local demand

inputs –e.g., quality, safety, and environmental


standards
Related
and
Supporti
Availability of suppliers and
ng

supporting industries
Social issues affecting the company

G
Generic Social Issues
e
n
e
ri
c
V
S Value chain social impacts
a
ol
uc
ei
ac
S
hol Social dimension of competitive context
acI
si
i
sn
a
us
l
Creating Shared Value
Nestle
RURAL DEVELOPMENT
RURAL DEVELOPMENT

WATER WATER
Strategic CSR

Toyota

Microsoft

GE
The Moral Purpose of Business
The most important thing a corporation can do for society is to contribute to
a prosperous economy

Business has no need to be defensive about its role

However, corporations depend on a healthy society to sustain


Competitiveness

Companies have the tools, capabilities, and resources to have a

major impact on social issues

• Each company should identify the particular set of societal

problems that it is best equipped to help resolve, and from which will

arise the greatest long term synergy with its business


Conclusion

Emergence and awareness of CSR has become increasingly important


to competitive success.

Philanthropic purposes should not be the only purpose but they should
contribute to the society.