Presentation CSR vs Philanthropy Consolidated

8/10/2019 Presentation CSR vs Philanthropy Consolidated

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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


Required by society

Expected by society

Desired by society


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Philanthropic

Ethical

Legal


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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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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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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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/


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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/


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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."

Presentation CSR vs Philanthropy Consolidated

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