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!!!