1. Corporate Social Responsibility has recently become very valuable for modern business. Companies’ leaders started to realize that CSR might bring the same, or even higher, impact on their main purpose – maximize the profit – rather than conservative ways of developing their product. It is recognized that CSR efforts are more likely to be taken by private companies, both small and big, rather than by public or state ones. The reason for such split is that private businesses have much more “free” money to invest into some charity programs and provide different philanthropic activities (Rangan, Chase, & Karim, 2012, 3). Afterwards, the Senior Management might move their philanthropy to more official and business related strategies; hence, they launch Corporate Social Responsibility throughout the whole company. Therefore, these activities lines up with the company strategies.
Another factor, which can bring the CSR efforts to the company, is that nowadays it is popular to care about environment and social values (Rangan, Chase, & Karim, 2012, 4). Therefore, once company correlates their politics with surrounding care it adds values to the product or service this company specializes, and, as a result, it helps to achieve every business goal – to maximize the profit.
However, lack of the clear CSR strategies lead the business leaders choose the frameworks to create one, otherwise, any CSR efforts will never bring the expected result, when they are spread into different initiatives and programs which are not even connected between each other (Rangan, Chase, & Karim, 2012, 4). Those frameworks should guide the company how to make CSR strategy unification of charity activity, supply chain, marketing aims etc., however this strategy cannot be fully integrated into company’s main business strategy (Rangan, Chase, & Karim, 2012, 4).
2. There are different factors and steps that should be taken while developing the effective CSR strategy. It is believed that the most important are:
the highest level management has to make an official commitment that the company launches the CSR. Top management approach to the CSR strategies definitely increases the company’s respect throughout consumers and will move it to leader positions. Great example of this strategy is shown by Campbell’s Canada’s Nourish, which the first Canadian company that specialized on hunger problems (Allen, 2011, n.p.). Rapidly, Nourish became of the leaders in food industry and it is a great example how strategic approach of CSR can brought a success to the company.
CSR efforts have to concentrate only to one particular problem (Allen, 2011, n.p.). It is well-known that dealing with one issue and concentrating all possible efforts on will definitely resolve it and within the shortest possible period of time. In the same time, once you split your efforts and attention to different ones, doubtfully the outcome will be as expected. Therefore, while dealing with the CSR strategy it is important to concentrate only on problem and do all necessary actions on it.
Rangan, K., Chase, L., & Karim, S. (2012). Why every company needs a CSR strategy and how to build it. [Boston]: Harvard Business School. Retrieved from http://www.hbs.edu/faculty/Publication%20Files/12-088.pdf
Allen, F. (2015). The Five Elements of the Best CSR Programs. Forbes. Retrieved from http://www.forbes.com/sites/csr/2011/04/26/the-five-elements-of-the-best-csr-programs/