The document discusses corporate social responsibility (CSR) and how building local infrastructure through CSR initiatives can be strategic and beneficial for companies. It argues that if a company exists within a society, it contributes in some way. The document outlines different perspectives on CSR, from moral duties to strategic benefits. It discusses how a company's value chain and activities can impact local infrastructure, and how addressing these impacts positively through CSR can reduce costs and increase profits. The competitive context is also discussed, with CSR opportunities to improve input factors, related industries, demand conditions, and strategic context. The conclusion is that CSR is now a strategic imperative, and local infrastructure offers strategic CSR opportunities if chosen critically for social and business success.

1. Jayashree Sadri and Sorab Sadri
CSR and BUILDING LOCAL
INFRASTRUCTURE
Professor Jayashree Sadri
and
Dr Sorab Sadri

2. Jayashree Sadri and Sorab Sadri
BASIS
 The basis of this program is work done by the
two authors independently and thereafter on
the academic papers they co-authored with
Dr R P Mohanty, Prof. Bijoy S Guha, Dr
Sharukh N Tara and Prof. Praveen Dange
between 2005 and 2008.

3. Jayashree Sadri and Sorab Sadri
The Argument
 If a corporate entity exists within society it
contributes to society in one way or another.
 It is argued that CSR initiatives to build local
infrastructure are salutary and must be
undertaken.
 This is an exercise not for a normative intent
but for a strategic intent since the corporate
entity stands to gain thereby.

4. Jayashree Sadri and Sorab Sadri
What is CSR ?
Some Perspectives
 ANDREW CARNEGIE AND THE GOSPEL OF WEALTH
 MILTON FRIEDMAN AND HONEST PROFIT
 KEITH DAVIS AND ENLIGHTENED SELF INTEREST
 ROBERT ACKERMAN AND CORPORATE SOCIAL
RESPONSIVENESS
 ARCHIE CARROLL AND SOCIAL PERFORMANCE
 THE SELECTIVE INTERVENTION
APPROACH

5. Jayashree Sadri and Sorab Sadri
CSR Definitions
 “The continuing commitment by business to behave ethically
and contribute to sustainable development while improving the
quality of life of its workforce and their families as well as of
the local community and society at large.” – Source: The World
Business Council for Social Development
 “The concept whereby companies integrate social and
environmental concerns in their business operations and in
their interaction with their stakeholders, in a voluntary basis. ”
– Source: European Commission
 “Achieving commercial success in ways that honor ethical
values and respect people, communities, and the natural
environment.” – Source: Business for Social Responsibility

6. Jayashree Sadri and Sorab Sadri
Two Perspectives on CSR
 Moral Duty Aligned Normative Perspective
focusing on the role of Business in the society
( Carroll, Wood, Freeman)
 Instrumental Positive Strategic perspective
focusing on CSR as a tool to gain some
benefit ( Baron, McWilliams, Porter, Hart)

7. Jayashree Sadri and Sorab Sadri
Questions on the Normative Perspective of CSR
 First, shareholders are the owners of the corporation, and
managers have no right to act on their own preferences,
to make discretionary decisions or to use company’s
resources to further social goals which cannot be shown
to be directly related to corporate objectives.
 Second, companies’ role is to produce wealth, and pursue
socially responsible objectives may impair their
performance in that role interfering with e cient resourceffi
allocation;
 Third, other organizations exist to deal with the kind of
function requested by socially responsible actions, such
as government, and companies and managers are not
equipped to perform such role

8. Jayashree Sadri and Sorab Sadri
The Advent of Strategic Perspective on
CSR The focus of Strategic CSR is on integrating CSR in core
strategies of Business and take up those CSR activities
which would forward the interest of business
 While normative approach has its roots in the tension
and friction between business and society, strategic CSR
is built on harmony between the two.
 Treats CSR as a strategic investment decision instead of
a cost to business.

9. Jayashree Sadri and Sorab Sadri
Business Benefits of CSR
 Protect the intangible asset of a company
 Build and maintain consumers’ and stakeholders’
trust
 Reduce transaction costs
 Improve company’s access to alternative sources
of capital
 Increase a company’s access to a particular
market
 Increase a company’s acceptance by the general
public

10. Jayashree Sadri and Sorab Sadri
CSR and Business Sustainability
 A Diagrammatic
Explanation of
Linkages ORGANISATIONAL
EXCELLENCE
PLANET
CORPORATE SOCIAL RESPONSIBILITY
INITIATIVES
STRATEGIC MANAGEMENT INTERVENTIONS
PROFITPEOPLE
HUMAN
ENGINEERING
PRODUCTIVITY
EXECUTION
QUALITY
MANAGEMENT
BUSINESS SUSTAINABILITY
COMPETITIVE
EDGEBRAND IMAGE

11. Jayashree Sadri and Sorab Sadri
How?
The Tools For Strategic CSR
 The Stakeholder Theory
 Donaldson and Preston (2006)
 Descriptive
 Instrumental
 Normative
 Jawahar and McLaughlin (2001)
 “fundamental assumption is that the ultimate objective
of corporate decisions is marketplace success, and
stakeholder management is a means to that end.”
 Michell et al
 Theory of stakeholder identification and salience
 Porter’s Value Chain
 Social Influence in Competitive Context

12. Jayashree Sadri and Sorab Sadri
Stakeholder Identification and Salience &
Socio Cultural Context

13. Jayashree Sadri and Sorab Sadri
TWO ARGUMENTS
 If the firm addresses the consequences of its
value chain activities on the local
infrastructure positively it would likely lead to
reduce cost and increase margin.
 Competitive context of the firm also offers its
opportunities which the firm may tap and
convert into sustainable competitive
advantage.

14. Jayashree Sadri and Sorab Sadri
Impact of Porter’s Value Chain on
Local Infrastructure

15. Jayashree Sadri and Sorab Sadri
Firm Value Chain Activity Consequences on the local infrastructure
Firm Infrastructure Local institution building
Human Resources Management Education and Job Training
Safe working conditions
Health Care and other benefits
Technology Development Relations with Universities
Product safety
Raw material Conservation
Recycling
Procurement Procurement and supply chain practices
Uses of particular inputs
Utilization of the natural Resources
Inbound logistics Transportation impacts
Operations Emissions and waste disposal
Biodiversity and ecological impacts
Energy and water usages
Worker safety and labour conditions
Hazardous materials
Outbound Logistics Packaging and waste disposal
Transportation impacts
Marketing and Sales
After Sales Service Disposal of obsolete products
Handling consumables

16. Jayashree Sadri and Sorab Sadri
Competitive Context and Social
Influence
1. Context for Firm Strategy and Rivalry
2. Local Demand Conditions
3. Related and Supporting Industry
4. Factor input Conditions

17. Jayashree Sadri and Sorab Sadri
Input Factor Conditions
• Improve education and training
• Improve local quality of life
• Improve inputs other than supply of labour:
– Quality of local research and development
institutions
– Effectiveness of administrative institutions
– Quality of the physical infrastructure
– Sustainable development of natural resources

18. Jayashree Sadri and Sorab Sadri
Related and Supporting Industries
• Foster the development of clusters
• Strengthen supporting industries
• Increase degree of knowledge transfer

19. Jayashree Sadri and Sorab Sadri
Demand Conditions
• Increase the size of local market
• Stimulate sophistication of local customers
• Appropriateness of products standardization

20. Jayashree Sadri and Sorab Sadri
CONTEXT FOR STRATEGY AND RIVALRY
• Create a more productive and transparent
environment for competition
• Lobby for policy change
• Foster environment that rewards competition
• Promote improved standards on corporate
governance and disclosure

21. Jayashree Sadri and Sorab Sadri
Conclusions
 CSR is no longer a managerial option
but a strategic imperative.
 Local infrastructure provides the firm
with strategic CSR opportunities.
 Choice of the CSR activities is critical
for the success of the initiative for both
the society and the firm.

22. Jayashree Sadri and Sorab Sadri
CSR intervention must be woven into
the fabric of corporate strategy.
Thanks For Your Time,
Patience and Understanding.