Leadership, Corporate Social Responsibility and Sustainability, Part 3: Strategy Focus

Early corporate citizenship initiatives were often directed at supporting commu­nity causes ranging from charitable organizations to cultural institutions like municipal symphonies and operas. Companies have been historically helpful in developing the cultural infrastructure of many communities. Whether these cor­porate philanthropy efforts were beneficial to the company or only to selected individuals is very subjective. However, many of these early efforts were not scrutinized for their contribution to the strategic objectives of the firm. Michael E. Porter and Mark R. Kramer have argued that a company needs to choose its social initiatives strategically. They have advanced the concept of shared value, which they define as “policies and operating practices that enhance the competi­tiveness of a company while simultaneously advancing the economic and social conditions in the communities in which it operates. Shared value creation focuses on identifying and expanding the connections between societal and eco­nomic programs.”

Porter and Kramer identify three approaches that apply to international marketers:

(1) delivering attractive products that are truly beneficial to society; (2) removing problems in the supply chain that are both costly and socially detrimental, such as reducing. greenhouse gasses; and (3) enabling local cluster development to help communities become more competitive.

They argue that “we need a more sophisticated form of capitalism, one imbued with a social purpose. But that purpose should arise not out of charity but out of a deeper understanding of competition and economic value creation.” The best interna­tional marketers are driven by the desire to create value and improve their com­petitive positions, so shared value becomes the right and smart thing to do.

8 thoughts on “Leadership, Corporate Social Responsibility and Sustainability, Part 3: Strategy Focus

  1. Hey there! This post could not be written any better!
    Reading this post reminds me of my previous room mate! He always kept talking about this.
    I will forward this article to him. Fairly certain he will
    have a good read. Thank you for sharing!

  2. I’m extremely impressed together with your writing abilities and also with the layout in your
    blog. Is that this a paid topic or did you customize it your self?
    Anyway keep up the excellent high quality writing, it is uncommon to look a great weblog like this one
    these days..

  3. Aw, this was an incredibly nice post. Finding the time and actual effort to produce
    a very good article… but what can I say… I hesitate a lot and never manage to get anything done.

  4. Hi, i read your blog from time to time and i own a similar one and i was just wondering if you get a lot of spam feedback? If so how do you stop it, any plugin or anything you can recommend? I get so much lately it’s driving me insane so any support is very much appreciated.

  5. I have not checked in here for a while since I thought it was getting boring, but the last several posts are good quality so I guess I will add you back to my daily bloglist. You deserve it my friend 🙂

Leave a Reply