Introduction
CSR is a concept of management that involves policies that institutions adopt to consider social, economic, and environmental implications while meeting the stakeholders’ and shareholders’ expectations. Numerous organizations list companies according to their CSR performance and these ratings often attract significant publicity (Porter, Michael, and Mark, 2006, p 3).
Discussion
The media, activists, and governments have been at the forefront of holding companies accountable for the social implications of their operational activities (Porter, Michael, and Mark, 2006, p 3). A good example is the Nike Company which faced a massive boycott by consumers in the early 1990s when the media reported cruel labor policies enforced by the company on its suppliers from Indonesia (Porter, Michael, and Mark, 2006, p 4). Various companies have done a lot to better the environmental and social implications of their operations, however, their efforts are yet to be productive as they should be (Porter, Michael, and Mark, 2006, p 3). The article “Strategy and Society” looked at various ways in which companies can effectively achieve CSR and recommended a framework to identify all implications and to determine which ones to address and the best ways of addressing them.
Generally, the paper breaks down the concept of CSR into simpler sub-topics that explain in detail the relationship between CSR and society. For instance, the four main justifications for CSR discussed in the paper include sustainability, moral responsibility, reputation, and license to run operations (Porter, Michael, and Mark, 2006, p 5). The sustainability aspect advocates for community and environmental stewardship, moral responsibility advocates for good citizenship by companies by doing the right thing, the reputation factor is about companies justifying their CSR initiatives on the ground that they will raise the company’s image, and lastly, companies have CSR strategies because some use them to obtain special permission from governments or other stakeholders to run operations (Porter, Michael, and Mark, 2006, p 5). Well, each of these justifications is associated with practical setbacks such as requiring advanced knowledge in the field.
This paper introduces a framework that will assist in the identification of the social effects of each unit’s operation at every point of the value chain. It emphasizes that successful companies need a society that is healthy accessing quality education, health care, and non-discriminative employment opportunities to build a thriving workforce (Porter, Michael, and Mark, 2006, p 10). According to this framework, it takes more than just adopting the best operations to achieve strategic CSR. It involves standing out from competitors and doing things differently in a manner that either minimizes company costs or serves the needs of consumers effectively (Porter, Michael, and Mark, 2006, p 10). A good example of strategic CSR is displayed by the largest bank in France, Credit Agricole, which is differentiated to offer special financial loans connected to the environment such as financial loan offers to consumers practicing organic farming and those seeking to improve their energy-saving homes.
Conclusion
Companies have to bring about a strong and positive influence on society while offering jobs, investing their capital, buying goods, and running their daily operations. A good example is the case of Nestle’s milk business when granted permission to enter the Indian market in 1962, Moga district was very poor with no electricity, infrastructure, no health care facilities, and no telephones (Porter, Michael, and Mark, 2006, p 14). Nestle’s approach was to build a business other than CSR, therefore, the company constructed collection points with refrigerators and sent out trucks with professional staff to collect milk, treat sick animals, and train the local farmers. The company offered financial support to dig boreholes to be used for the irrigation of animal feeds and crops for human consumption (Porter, Michael, and Mark, 2006, p 14). Ultimately, the standards of living for the people living in Moga district were raised and the overall production of milk was improved to the desired levels by Nestle Company. This case shows strategic CSR is important and beneficial for company performance and the progress of the entire society.
Work Cited
Porter, Michael E., and Mark R. Kramer. “The link between competitive advantage and corporate social responsibility.” Harvard business review 84.12 (2006): 78-92. Web.