[3차수정kor_hbr] strategy and society_the link between competitive advantage and corporate social...

8/7/2019 [3 KOR_HBR] Strategy and Society_The Link Between Competitive Advantage and Corporate Social Responsibility

1/33

Strategy & Society

Chung, Chang Kwon

Twitter @lovelyhaley03

Facebook: Chang21c

The Link Between

Competitive Advantage

And Corporate Social Responsibility

HBR, Dec. 2006 [HBR Spotlight]

Michael E. Porter & Mark R. Kramer


2/33

1

~!! .

http://j.mp/abtmAx [2]


3/33

2

[ ] HBR l : 2010 9 16 . 19:30 ~ 21:00

l :

88, 3( 5)

l : 15

l :

CEO MBA Academic Background

l

www.facebook.com/HBRstudy

l : Youtube (10)

(facebook )

^^

[email protected]

[email protected]

Porter, Michael E., Mark R. Kramer. Strategy and Society: The Link Between Competitive Advantage and Corporate SocialResponsibility, Harvard Business Review, Dec2006, Vol. 84 Issue 12, p78-92


4/33

3

(2000~)

- (2010~)- (2003~2009)

- (2000~2003)

(1996~2000)

- /

- Project

[ ] (2009)

(as of 2010 )

(MBA, )

[email protected]

[email protected]



5/33

4

Michael E. Porteris the Bishop William Lawrence University Professor at Harvard University; he is based at

Harvard Business School in Boston. He is a frequent contributor to HBR, and his most recent article is Seven

Surprises for New CEOs

(October 2004)

Mark R. Kramer([email protected]) is the managing director of FSG Social Impact Advisors,

an international nonprofit consulting firm, and a senior fellow in the CSR Initiative at Harvards John F. Kennedy School of

Government in Cambridge, Massachusetts. Porter and Kramer are the cofounders of both FSG Social Impact Advisors and

the Center for Effective Philanthropy, a nonprofit research organization.

http://www.fsg-impact.org/

1999-2010, FSG, Inc.

Porter, Michael E. and Mark R. Kramer. The Competitive Advantage of Corporate Philanthropy,Harvard Business Review, Vol. 80 Issue 12, Dec. 2002, p56-69



6/33

5



7/33

6


http://j.mp/bhaE1l


8/33


9/33

8

Fresh water issue

Bottled water

= 0.0008 % of world water

Inefficiency of agricultural irrigation

= 70%


In fact,


10/33

9


Four Prevailing Justification for CSR

1. Moral Obligation Should Do The Right Thing

2. Sustainability

3. License to Operate Stakeholders view

4. Reputation Customer-oriented view

Environmental and Community Stewardship

Business Society


11/33

10


BSR=Business for Social Responsibility


12/33

11

http://www.wbcsd.org/


13/33

12

Integrating Business and Society

1. Identifying the points ofintersection.

2. Choosing which social issues to address.

3. Creating a corporate social agenda.

4. Integrating inside-out and outside-inpractice.

5. Creating a Social dimension to the value

proposition.


14/33

13

1. Identifying the points ofintersection.

Company Society

(Value Chain)

(Diamond Model)


15/33

14

2. Choosing which social issues to address.

The essential test that should guide CSR is not whether a cause is worthybut whether it presents an opportunity to create share value.

Generic Social Issues

~

Value Chain Social Impacts

()

Social Dimensions of competitive context



16/33

15

Supporting a dance company


Generic Issue Competitive context


17/33

16


Generic Issue Value Chain Impact

(-)

Value Chain

Competitive context


18/33

17

AIDS pandemic in Africa


Generic Issue Value Chain Impact Competitive

context


19/33

18

3. Creating a corporate social agenda.


Corporate Involvement in Society:A Strategic Approach

Generic social ImpactsValue chain SocialImpacts

Social Dimensions ofCompetitive Context

Good citizenship Mitigate harm from

value chain activities

Strategic philanthropy

that leveragecapabilities to improvesalient areas ofcompetitive context

Responsive CSR

Transform value chainactivities to benefit

society while reinforcingstrategy

Strategy CSR


20/33

19


School Adopting Program

Underperforming public high school

5yrs, $250,000~$1m. + in-kind donation Employees take active role in school

Increase in graduate rate to double

But, inherently limited

Good citizenship(responsive)


21/33

20


Tens of thousands of products

To prevent risk before social pressure But, advantage is temporary.

Mitigating harm(responsive)

Analyzing product


22/33

21


For disadvantaged buyers

Flexible mortgage payments program

Transforming value chain(strategic)

Building housing

Frances largest bank

Environmental package


23/33

22


$50 m., 5yrs Employee volunteers of skilled IT knowledge

Community-Microsoft win-win program

Strategic CSR

+

450,000 unfilled IT position 11.6 m. enrolled student


24/33

23

4. Integrating inside-out and outside-in


180 h. paid class

Local community

Retention: 65%

Milk District in Moga


25/33

24


No public utility

Poorly irrigated and

infertile soil

60% death rate of

new born calves

Poor infrastructure

Nestles Milk District in Moga

Moga Nestle Refrigerating truck

Dispatching experts

Monthly training sessions

Financing and technical

assistance

Supplier: 180 farmers 75,000 farmers

50 ,

Moga


26/33

25


5. Social dimension into the value proposition.

Core Values

1.Selling the highest quality natural andorganic products available

2. Satisfying and delighting our customers3. Supporting team member happiness and excellence4. Creating wealth through profits & growth5. Caring about our communities & our environment

6. Creating ongoing win-win partnerships with our suppliers7. Promoting the health of our stakeholders through healthy eating

education

Fortune 500

() Credit


27/33

26


Ecomagination

Focusing on poorest populations


28/33

27

Inside-Out



29/33

28


Outside-In


30/33

29


Strategy is always about making choices, and success inCSR is no different. It is about choosing which social issues

to focus on.

1. CSR will become increasingly important tocompetitive success.

2. Corporations are not responsible for all theworlds problems, nor do they have theresources to solve them all.


31/33

30

by

1.

.

Microsoft 2 , 2.

C.K. Prahalad

2/3 3. BOP

, ..4.

() ( )

5.


32/33

31

BOP, Bottom of Pyramid

Harvard Business Review; Sep2002


33/33

32

BOP, Bottom of Pyramid Long tail

Cocreating Business's New Social Compact. Harvard Business Review; Feb2007

WHY SUSTAINABILITY IS NOW THE KEY DRIVER OF INNOVATION Harvard Business Review; Sep2009

- 3 - 5- 1,500 - 15

- 1,500 - 40

700L, 2Euro

Long tail - Advantage- - IT -

[3차수정kor_hbr] strategy and society_the link between competitive advantage and corporate social...

Documents