1. Niken Dian Permata Sari
Strategy & Society “The Link Between Competitive Advantage & Corporate Social Responsibility” (Porter Kramer Strategy Society)
Group 6 :
Angie Pritta C.
Niken Dian Permata Sari
Reni Hapsari
Satya Mahardika

2. ...Prolegomenon...
CSR has emerged as an inescapable priority for business leaders in every country
The fact is, the prevailing approaches to CSR are so fragmented and so disconnected from business and strategy as to obsecure many greatest opportunities for company to benefit society
When looked at strategically, CSR can become a source of tremendous social progress.

3. ...The Emergence of CSR... Public issues :
Nike consumer boycott in the early 1990
Shell Oil’s decision to sink the Brent Spar got Greenpeace protest in 1995
Fast food and packaged foo companies are now being held responsible for obesity and poor nutrition

4. ...Prevailing Justifications for CSR...
Consideration of company doing CSR :
Moral obligation
Sustainability
License to operate
Reputation

5. Prevailing Justification for CSR
LISENCE-TO-OPERATE
Tacit or explicit permission from govt, communities and other stakeholders.
Offers a concrete way of identifying social issues that matter to its stakeholders.
REPUTATION
CSR will improve company’s image, strengthen brand and raise the value of stock.
Studies on companies social reputation on consumer purchases and stock market performance have been inconclusive.

6. Prevailing Justification for CSR
All the four school of thought focus on the tension between business and society rather than their interdependence
They are not tied to the strategy and operations of the company and thus are not sufficient to help the company identify, prioritize and address social issues that matter it the most/where it can create a biggest impact
Results : Thus they neither create a meaningful social impact nor strengthen firms long term competitiveness.

7. Integrating Business and Society
Both business decisions and social policies must follow the principle of shared value.
SUCCESSFUL CORPORATION
HEALTHY SOCIETY

8. Looking Inside-Out : Mapping The Social Impact of the Value Chain
Every activity in company’s value chain touches communities in which the firm operates, creating positive or negative social `consequences.

9. Looking Outside-In : Social Influence on Competitiveness
The quantity and quality of available business inputs.
2. The rules and incentives that govern competition.
3. The size and sophistication of local demand.
4. The local availibility of supporting industries.

10. CHOOSING WHICH SOCIAL ISSUES ADDRESS

11. Creating a Corporate Social Agenda
Responsive CSR
Strategic CSR
An affirmative corporate social agenda moves from mitigating harm to reinforcing corporate strategy through social progress.

12. Responsive Corporate Social Responsibility
1. Acting as a good corporate citizen.
Being a good corporate citizen [A Sine Qua Non of CSR]
Comply with society’s expectations
(e.g. law, custom, ethics)
2. Mitigating existing or anticipated adverse effects from business activities.
Minimize and mitigate any negative impacts of value chain activities by adopting a checklist approach to CSR.

13. Strategic Corporate Social Responsibility
Strategy must go beyond best practices. It is about choosing a unique position – doing things differently from competitors in a way that lower costs or better serves a particular set of customer needs. Many opportunities to pioneer innovations to benefit both society and a company’s own competitiveness can arise in the product offering and the value chain.
Select a small number of initiatives whose social and business benefits are large and distinctive – “an explicit and affirmative corporate social agenda”
Ideally, these become a social dimension to the value proposition of the company leading to Creating Shared Value.
Michael Porter, Mark Kramer,
Harvard business Review, January, 2011

14. Toyota response to concerns over automobile emissions
Toyota response to concerns over automobile emissions. Toyota Prius, the hybrid electric/gasoline vehicle, is the first in a series of innovative car models that have produced competitive advantages and environmental benefits.
Voted 2004 Car of the Year by Motor Trend magazine, Prius has given Toyota a lead so substantial that Ford and other car companies are licensing the technology. Toyota has created a unique position with customers and is well on its way to establishing its technology as the world standard.

15. Creating social dimension to the value proposition
Value propositon
- Qualitative
- Quantitave

17. Organizing for csr
- Strategy is always abot making choice, and success in csr is no different.
- Its about choosing which social issues to focus on.

18. The moral purpose of business
- Perceiving social responsibility as building shared value rather than as damage control as a PR campaign will require dramatically different thinking in business.
- Csr will become increasing important to competitive success.