Recent Takes on CSR

Some other opinions on CSR that surfaced in response to the Porter/Kramer CSR article cited in Truly Strategic CSR Part I:

Jessica Margolin at Solvation:

I actually feel this framework doesn’t go quite far enough…it *seems* they’re saying that there needs to be collaboration across the boundary or in the interface between firm and non-firm.  In contrast, I’m saying that the concept of externalities is outmoded now that we can model complex systems, and a new model needs to be developed that treats firms, community groups, etc. — down to the individual level — as actors in a larger topology.

John Elkington

And the future of CSR? Well, I totally agree with the point that ‘broad, unfocused support of multiple causes’ – often viewed as an example of corporate responsibility and good citizenship – “has little impact.”

Victoria Erhart at Blogging Stocks

Porter and Kramer argue that strategic corporate social responsibility responses must create shared value for both the company and society simultaneously. A company must focus on a small number of large impact initiatives integral to its own core operations. Management must measure potential social rather than stakeholder satisfaction. Generic social do-good programs do not have a measurable long-term impact on either the company’s competitive position or the health of the society.

Mark Kramer at the HBS Conversation Starter

Although social issues are indeed the purview of government, in reality, global corporations are creating a de facto set of international standards that collectively rise above the social obligations imposed by any one government – and to compete in the global economy, companies are finding that they must abide by this emerging code of conduct.

Bob Langert from McDonald’s

I noticed a lack of perspective from the business side in this article [review of Robert Reich's book, Supercapitalism in the Economist]. Let me provide my point of view. I couldn’t agree with Simon Zadek, the head of Accountability, more when he says in the article that it is not what or why; it’s all about how to do it. Doing it in a way that jives with the business – in our case McDonald’s and the food service industry – and with what is good for society. There is a robust “to do” list at this intersection for any business.

The Thinking Shift Blog

So I was pleased to come across an article in the Harvard Business Review by Michael Porter & Mark Kramer that talks about strategic CSR. I particularly like the framework they articulate that includes “inside-out linkages” and “outside-in linkages”.

Without specifically talking about an ecosystem model, Porter & Kramer see CSR as an opportunity rather than a cost because there are points of intersection between a company and society. If these intersection points are identified, then the company can work out a value proposition that is unique for its customers.

Tags: corporate social responsibility, csr, sustainability