Csr needs to be incorporated in strategy by focusing

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CSR needs to be incorporated in strategy by focusing on specific issues and try to create best practices and competitive advantages just as in regular business operations. Focus on few of the most direct, visible social issues where the organization can leverage its own operational competitive advantages to create profound social impact. Need a 3rd Ex. GE Provided funding, equipment and teaching resources to help underachieving schools around its major offices and production facilities. Provided up to $1M per year and over 5 years, has helped double graduation rates from 30% to 60%. 5) According to M. Porter and M. Kramer and their article “Strategy & Society”, please define and describe four CSR justifications that have led to results below expectations. Please identify a specific issue for each CSR justification. 1. Moral obligation Belief that companies have obligation to be good citizens and “do the right thing.” Issue : There is no formula to help weigh social benefits against each other and their financial costs. There is no guidance to show companies how to balance meeting social needs and investor needs. 2. Sustainability Stewardship of environment and community. “Companies should operate in ways that secure long term economic performance through behaviour that doesn’t negatively affect society or is environmentally wasteful. Issue : It is very vague and doesn’t provide help in balancing long term objectives and short term costs. 3. License to operate Focused on companies who depend heavily on stakeholders to operate (i.e. mining companies need gov’t approval). Issues : Promotes extensive dialogue with stakeholders but basically cedes control of CSR agenda to them when they simply do not understand the capabilities, competitive positioning or tradeoffs it must make. Easy to develop into a way for companies to get stakeholders off their back and end up being PR with minimal value to society or strategic benefit to business 4. Reputation Satisfying external audience like above. CSR has become a method to develop a positive image so to negate any bad press in the future. Issue : Has developed into a aesthetically pleasing but no substance justification as many companies create elaborate CSR reports that showcase their good deeds but without any cohesion among the activities, and their impact. In general, all four justifications share the same weakness: They focus on the tension between business and society rather than on their interdependence. They are all very generic and are not tied to strategy or operations 6) M. Porter and M. Kramer and their article “Strategy & Society”, raise the concepts of “linkages”. Please define and describe these two concepts in details. What are the implications (2) for CSR strategy formulation?
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