NPO or NGO

• NGO– International relation literature– Stakeholder literature

• Campaigning / advocacy

• NPO– Management literature

• Service delivery (broadly defined)

Stakeholder dialogue partnership

COMPANY

NGO

Changed behavior company

Influence (other) stakeholders

New combination partnership

COMPANY

NGONPO

e.g green energy

New market

achieve goal

Resource exchange partnership

COMPANY

NPO

HRM, PR, SM effects

More resources to deliver services

The Link Between Competitative Advantage and Corporate Social

Responsibility

Michael E. Porter en Mark R. Kramer 2006

Porter en Kramer, 2006

Competitive context• “A given social issue may cut differently

for different companies, owing to differences in competitive positioning”.

Porter en Kramer, 2006

Generic Social Issues Value Chain Social Impacts

Social Dimensions of Competitive Context

Social issues that are not significantly affected by a company’s operations nor materially affect it’s long-term competitiveness

Social issues that are significantly affected by a company’s activities in the ordinary course of business

Social issues in the external environment that significantly affect the underlying drivers of a company’s competitiveness in the locations where it operates

Porter en Kramer, 2006

Supporting a dance company

Generic social issue for Southern California Edison (utility)

Competitive context issue for American Express (dependant on entertainment, tourism)

Carbon emissions

Generic social issue for Bank of America (financial services)

Negative value chain impact for UPS (transportation-based)

Value chain impact en competitive context issue for Toyota (car manufacturer)

Africa’s AIDS pandemic

Generic social issue for Home Depot (US retailer)

Value chain impact for GlaxoSmithKline (pharmaceutical company)

Competitive context issue for Anglo American (mining company active in Africa)

Porter en Kramer, 2006

Porter en Kramer, 2006

Generic Social Impacts

Value Chain Social Impacts

Social Dimensions of Competitive Context

Good citizenship Mitigate harm from value chain activities

Strategic philanthropy that leverages capabilities to improve salient areas of competitive context

Responsive CSR

Transform valuechain activities to benefit society while reinforcing strategy

Strategic CSR

Corporate Involvement in Society: A Strategic Approach

• Responsive CSR: GE adopts underachiving bad schools ($250.000- $1 mln per school, in 5 year).

• Strategic CSR: Microsoft invests in computers at community colleges ($50 mln in 5 year).

Integreren van praktijk en context

• “The most strategic CSR occurs when a company adds a social dimension to its value proposition, making social impact integral to the overall strategy”.

• No “corporate social responsibility”, but “corporate social integration”