Post on 02-Jun-2018
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Strategic Management and CSR
Joo PereiraJosefin NystromLubo KruzliakMohamed Meeran
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CSR is defined as the responsibility of
enterprises for their impacts on society.
More specifically, CSR is used to maximizethe good and minimize the bad effects a
company has on their stakeholders diverse
interests.
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Recruitment
Retention
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Limit unwanted attention Improve reputation due to
current events
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SR can help build customer loyalty based on distinctive
ethical values
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Philanthropic
Ethical
Legal
EconomicRequired by society
Required by society
Expected by society
Desired by society
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Philanthropic
Ethical
Legal
EconomicRequired by society
Required by society
Expected by society
Desired by society
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Philanthropic
Ethical
Legal
EconomicRequired by society
Required by society
Expected by society
Desired by society
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Corporate Philanthropy
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A way of giving back to the community Local, regional, national, or international
Various donations Financial donations
Tangible goods food, computers, medicine,own products
Company time
Fundraising from others
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Corporate Philanthropy
Focus on the treating the cause of a problem or
issue instead of the symptom. Usually done through a corporation directly or a
corporations own non-profit entity.
Funding mainly comes from the companys
contributions and are usually treated as a businessexpense
Allowed to deduct up to 10 of pre-tax income fordirect charitable contributions Most companies
deduct about 1%.
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Corporate Philanthropy
Benefits:
Indirectly enhancing a companys brand andimage, better recognition
Improved employee engagement
-> higher retention rate = employees who enjoyed
their workplaces wereless likely to leave
Companys bottom line
-> it will spend less on recruiting, hiring andtraining new employees
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Corporate Philanthropy
Example: Halo, Purely for Pets
All natural pet food company
Donates 1.5 million pet meals per year
www.freekibble.com
http://www.freekibble.com/http://www.freekibble.com/8/10/2019 Presentation CSR vs Philanthropy Consolidated
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Corporate Philanthropy
Example: Reed Construction Data construction information business
blitz build event each year
100+ volunteers, consisting of employees,architects, engineers, contractors, leadingmanufacturers, generous sponsors and volunteersfrom across the U.S. to renovate or restore afacility or shelter
Many of these individuals are veterans who have
nowhere else to turn. Working together, we
make their lives easier and more comfortable.
http://www.reedconstructiondata.com/http://www.reedconstructiondata.com/aec-cares/http://www.reedconstructiondata.com/aec-cares/http://www.reedconstructiondata.com/8/10/2019 Presentation CSR vs Philanthropy Consolidated
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CSR vs Company
goals
Does CSR interfere with companiesprime reason for existing, i.e., to
make as high a profit as possible?
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CSR vs Company goals
ITC - India Tobacco Company
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CSR vs Company goals
AcadeMedia
70 000 students
15 million profit
Is AdadeMedias maingoal to earn as higha profit as possible?
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What is the reason for the ITC to engage in all thesecorporate responsiveness is it a real socialconsensus or personal relation(PR).
1. ITC luxurious hotel electricity bill went up to RS.70
Million, immediately
consultant hired and they have reducedtheir energy consumption by alternative energy sources like solarpower, wind energy it helped them to reduce 20 percent drop in theirelectricity bill.
2. The group generated over 28 lakh tonnes of solid waste last year - but
were able to recycle 81 per cent of that waste.
3. Indian center for science and environment certified green rating for thepaper and pulp industry.
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1. Massive human programme in which ITC has roped in over 30,000
farmers, offering them an alternative livelihood.The company
offers saplings at Rs 6-8 each to plant on their land.
And it supports the farmers by offering advice on how
to grow the trees,how much fertiliser they should put in, andwhen to reap to get the best returns. More importantly, it
guarantees that it will buy back the wood after four years at theprevailing market price.
2. And company executives say that with 50,000 hectares under
plantation, it is more than enoughto meet most of the needs
of the paperboard plant. ITC might even be willing to
pay a higher price to farmers who are near the paper mill since
it saves them expensive transportation costs
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Prime reasons for its existence is a profit not the socialconsensus
Opportunities and challenges in the cigarette industry in India.
Tremendous opportunities for growth in the cigarette industry
1. Due to the health hazards associated with cigarette smoking, distortionin the tax system as applied to the cigarette industry, and restrictions on
smoking placed by new legislation. Challenges in the market due
to smuggling, contraband products, and other issues.
2. ITC Limited as a dominant player in the industry with a significantdependence on tobacco and tobacco products promising to pursue the
triple bottom line approach by focusing on economic, environmental andsocial value.
Any decision to stop producing and selling cigarettes
has negativei mplications for the business?
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1.
What do you think ? Should the company invest onresearch on health problems caused by theconsumption of tobacco and cigarette smoking?
2. Would you suggest to progressively work towardswinding down the cigarette business? If it is whatare the opportunities and threats
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Opportunities
1.
Can concentrate on
FMCG market since
they have established
brand name
.
2. More publicity of hotelchains to increase marketshare.
3. Mergers and acquisitions
to strengthen the brand
4. Excellent research anddevelopment facilities.
5. ITC has a strong andex erienced mana ement
Threats
1. Having high governmenttaxation and regulation fortobacco business
2. FDI investments allows
international brands in themarket
3.
Intense and
increasing competition
amongst other FMCG
companies and hotel
chains
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1. ITC,The listed cigarettes-to-consumer goods conglomerate, saw itsshares rise 2 percent, while HUL, the largest consumer company,saw sharesdecline 1 percent recently.
2. ITC,posted a 24 percent growth in the net profit at Rs 1,330 crore.HUL posted a 18 percent growth in the net profit at Rs 627 crore.
3.
ITCs strength comes from its cigarette business which
is more or less
recession-proof and is a near monopoly. HUL has no such
monopoly.
ITC can make a big impact in their hotel business sector like thescandic hotels
http://www.scandic-campaign.com/livereport/default.asp?lang=en
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Friskola (free school )
1.
Sweden has entrusted major
share of its childrens
education to the private
companies.
2. Sweden governance believes
market competition was the
best way to improve results.
3.
Effective policies on students
health , social care and safety
is on red line.
4. What is your views about theSweden decision to give themajor control to the private
players?
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1. Lessons are being conducted in malls, is it ok?
2.
Is it okay to make a profit from tax money, if you
provide good quality education?
3. Denmark based JB education went bankrupt and causedpanic among its 10,000 students and 1000 staffs, Is this arisk willing to take?
4. Hlsans chain of preschools got into the scam, they cutdown the foods budget to SKr9 ($1.30) per child per day,what would you recommend the monitory board to controlthis kind of practices?
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1. Prioritizing investmentson infrastructuredevelopment and labfacilities.
2. Acade Media makes about7 per cent profit, orSKr528m a year beforetax, on its schools andpreschools.
1. High Teachers ratioresulted in low salaries forfaculties as compared withthe state- run schools.
2. AcadeMedia ChiefExecutive MarcusStromberg said. "I think wewill see a continued
consolidation of the sector.I sincerely hope we won'tsee any morebankruptcies, but you can'tguarantee it."