[Carroll, 1979; 2008, 500]: "The social responsibility of business encompasses the economic, legal, ethical and discretionary expectations that a society has of organizations at a given point in time."
Strategic CSR and Competitive Advantage
Michael Hopkins, Director, MHC International Ltd
1. A heady mix of greed, overconfidence and the use of poor business models that showed up flawed strategies caused the global financial collapse of one year ago.Banks and other financial institutions are once again in the news for paying huge bonuses on the backs of taxpayers' bail outs.Is the merry go round of greed, overconfidence and flawed strategies about to spin again?
2. There is another way to look at strategy.
3. CSR (also commonly referred to as Corporate Responsibility) is a strategic systems approach that examines and influences the behaviour of a company while preserving its competitive advantage.
4. Let me deconstruct that sentence.
• CSR means treating the main stakeholders of a company in a responsible manner
• Corporate means any group of people that work together in a company or organisation, whether for profit or non-profit
• Social means the social system and includes finance, economy, environment and social issues
• Responsibility is about taking issues that affect the corporate body seriously and about acting within - and even beyond - societal norms
• Strategic means having a strategy that takes an idea into a working model
• A systems approach means including all aspects of the system in the decision making process
• Competitive advantage is the implementation of a value-creating strategy not simultaneously being implemented by any current or potential competitors
5. Take Michael Porter and Mark Kramer's (P-K) influential Harvard Business Review Article of December 2006.There they argue that ‘while CSR depends on being a good corporate citizen and...