SUMMARY
This Learning Log Book is about strategy and society, which explains the relationship between competitive advantage and corporate social responsibility CSR. It is a study practice which mirrors understanding of the management course topic of strategy and society. The media, governments and activists have forced firms to help the society. The companies must bear the responsibility of their activities to the society generically and not to suit the company’s strategy. CSR is not a philanthropic measure but a gateway to innovation, competitive advantage and job opportunity for many. Firms dealing with pharmaceutical products responded to HIV/AIDS by making drugs to help the victims in Africa, though these drugs were a secondary product line. In fact in 2005, 250 of leading global corporations, 160 released CSR publications which benefited new home-based report writers. However, CSR is done selectively, given that no company can solve all social problems. Both the community and corporate world have a collective responsibility.
KEY LEARNING POINTS
The emergency of CSR
Reasons why companies practice CSR
• To build reputation
• To sustain the firms
• As a moral obligation
• For acquisition of operation license
Integrating business and society
Mapping the social impact of the value chain
Social influences on competitiveness
Organizing for CSR
Moral purpose of the business
RELEVANT STATEMENTS
Competitive advantage and corporate social responsibility are directly related
CSR measures are not connected to business profits but serve to the society.
“The vehemence of a stakeholder group does not necessarily signify the importance of an issue-either to the company or to the world”
“An affirmative corporate social agenda moves from mitigating harm to reinforcing corporate strategy through social progress”
If a firm is tied closely to a social issue, it increases the chance of the company to use its resources prudently to help the society.
CRITICAL ANALYSIS
When registering a new business, the authorities have a right to interview the investor to evaluate the CSR programs the firm is going to be associated with before giving them a license to operate. I mean the company comes out clear to state how the society will benefit besides from job opportunity.
Most companies, however, use their CSR initiative as a way of fulfilling company goals. The community confuse CSR with charity as these firms are only interested in building a good name. Sustainability of the company is a function of CSR as consumers choose to work with a corporation which prioritizes their wellbeing. Extreme guilt may hit companies which do not care about the community.
The positive things that CSR programs do is that they directly. HIV/AIDS, diabetes, and anti-malaria campaigns are part of the things CSR accomplish. For instance, Gold’s Gym International Inc. give out free guides for gym exercises to help people fight weight gain and diabetes.
McDonald’s has cut down accumulation of solid wastes arising from the sales of its fast food products by 30% by using substitute wrapping materials and this explains why CSR is mandatory. This is quite gratifying.
Moreover, CSR work with the society to help conserve the environment. Donated seats at public places, public dustbins is the work of corporate social responsibility.
PRACTICAL IMPLICATIONS
Integration of business and society has been a routine practice to many companies. For instance, Unilever has been working very hard in meeting the needs of the many poor individuals around the world by pioneering new products, processing of packages and product distributing methods. If I was a CEO, would engage my resources to take care of CSR incentives. This will not only sustain my company’s existence, but also help me build a reputable image for that firm. It is always good to give back to the society not necessarily via charities but by considering making wallet friendly products for the poor access, just like Unilever. The Abu Dhabi National Oil Company ADNOC in the United Arab Emirates integrates the society via its CSR programs. It uses cheaper crude oil extraction and refining processes to make it possible for their petroleum products sale at affordable prices. It also sells the oil very cheap within UAE.
LEARNING REFLECTIONS
Strategy and society is one of my best understood topics in management. I followed all lectures and did assignments without difficulty. Its ability to be incorporated as a practical course has given me a professional feeling that may help me as a business and management expert in the making. Organizing for CSR has also been simplified during the class tuitions, and I have nothing to complain about. I believe my thorough knowledge about strategic management and corporate social responsibility will make a big difference in my career ahead.
