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CSR and Strategic Management

Corporate social responsibility and strategic management are interrelated concepts. Strategic management involves formulating, implementing, and evaluating a firm's strategies for growth, while corporate social responsibility considers the ethical impacts of a business. Incorporating social concerns into business strategies demonstrates that companies are aware of their role in society. CSR has evolved from a goodwill concept into a core business function and strategic component. When adopting CSR, companies focus on economic, ethical, legal, and philanthropic responsibilities to improve lives and limit environmental impacts while ensuring profitability.

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Akshat Chhabra
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19 views

CSR and Strategic Management

Corporate social responsibility and strategic management are interrelated concepts. Strategic management involves formulating, implementing, and evaluating a firm's strategies for growth, while corporate social responsibility considers the ethical impacts of a business. Incorporating social concerns into business strategies demonstrates that companies are aware of their role in society. CSR has evolved from a goodwill concept into a core business function and strategic component. When adopting CSR, companies focus on economic, ethical, legal, and philanthropic responsibilities to improve lives and limit environmental impacts while ensuring profitability.

Uploaded by

Akshat Chhabra
Copyright
© © All Rights Reserved
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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Corporate Social

Responsibility and
Strategic Management
Akshat Heera Chhabra
0223
MBA PM-12
CSR + Strategic management
• Strategic Management, defined as the dynamic process of formulation,
implementation, evaluation and control of a firm’s strategies (e.g., revenue
growth)
• On the other hand, corporate social responsibility is a form of management in
which companies take the ethical aspects of their business operations into
consideration
• Firms incorporate social concerns into their business strategies to highlight that
they are conscious of their roles in society and their communities outside of
business
• Thus, CSR transforms and evolves from being a ‘goodwill company’ concept into
becoming a ‘business function’, a ‘strategic management’ component of central
importance to firm level success
CSR is both critical and
controversial
• It is critical because it becomes the largest and most
innovative part of the for-profit sector of any free
society’s economy

• It is controversial because some see CSR as a


distraction from the economic purpose of a business

• Today’s companies ought to invest in CSR as part of


their business strategy to become more competitive
Aspects of CSR in SM
• More than just obeying the law, corporate social
responsibility involves a business taking proactive steps to
improve the quality of life for its employees and
community

• Different companies will select a different social


responsibility strategy from each other, but they all focus
on four core aspects of business strategies:
Economic
Ethical
Legal
Philanthropic
Economic Social
Responsibility
• An economic social responsibility strategy begins with
making sure a company is sustainable, profitable,
satisfies its shareholders, and pay its employees a
respectable wage

• Addresses issues such as gender wage discrimination,


paying appropriate business taxes and meeting other
financial commitments

• Likewise, corporate economic responsibility includes


businesses finding inefficiencies in their operations
that waste capital
Ethical Social Responsibility
• Inside the workplace, this could include paying a
living wage, ensuring safe working conditions, and
being willing only to do business with companies
with similar ethical principles – e.g., not purchasing
products from a factory that uses child labor

• Taking into consideration a company's environmental


impact and doing its job to limit forms of waste

• Companies should analyze the processes they use


and proactively do what they can to reduce their
environmental impact
Legal Social Responsibility
• The legal segment of CSR revolves around making
sure that companies are aware of and abide by all
local, state and federal laws

• Companies must comply with safety and labor laws


put in place by regulators

• Being mindful of legal obligations can protect a


company's reputation and limit the amount of time
and money it must spend in potential legal fees
Philanthropic Social Responsibility

• Corporate philanthropic responsibility involves using


a company's time and resources to make
investments in the communities where they operate

• These investments could be in the form of


scholarships and other educational assistance, or
other notable local causes

• It is common for large corporations to have in-house


departments that manage and coordinate the
company's philanthropic efforts
Thank You…

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