January 26, 2009

Corporate Strategy



Awareness of the company that his fate depends also on the environment and the community about the rise of late. Therefore, we can also read the news more often about the increasing efforts that include a corporate social responsibility (CSR).

In the country we can see efforts such as Telkom who donated computers and Internet connections to assist in the villages, the Sampoerna diligently to provide scholarships, or Unilever products through the development Lifebouy help higenis a toilet in the villages. Anyone who do these things, and whatever they do, we give them worthy of praise. We also expect more companies to follow them.

Unfortunately, most companies still view CSR as part of the cost or reactive measures to anticipate rejection and community environment. Some companies are able to raise the status of CSR to a higher level with the making as part of efforts to increase brand building and corporate image. However, efforts CSR is still a rarely used as part of a strategic planning company.


CSR and corporate strategy? Sounds second it mutually incompatible. Milton Friedman, the Nobel Prize winning economist, even pout efforts to make the company as a tool for social purposes. Corporate goal, according to him, only generate economic benefits for shareholders. Of course, Friedman's considered opinion increasingly outdated. However, creating synergies between CSR and corporate strategy is not something that is also prevalent.

Fortunately only a few large companies and academic circles, including Michael Porter, Clayton Christensen, and Rosabeth Moss Kanter (third from the Harvard Business School), has proven successful programs CSR disinergikan with the company's strategy will provide a far more impact to the community and large companies itself compared to the efforts of CSR ala measure. According to them, only with the CSR as part of corporate strategy, CSR programs can be eternal. Because the company's strategy is closely related to the CSR program, the company will not remove the program even though the CSR was a crisis, unless you want to change the fundamental strategy. While in cases of CSR in general, so the company was a crisis, the CSR program will be cut first.

An example of a very interesting case is that Nestle to help the breeder cow in India. Before Nestle into India, the farmers who have difficult access to clean water channels, the land fertile, and other infrastructures that support should be satisfied with the life-cow beef lean and short. When Nestle into India, the company quickly realized for the supply of pure milk is sufficient, they need to help the breeder's. Thus, the CSR program diluncurkanlah massive.

Nestle established centers with milk storage engine cooling in some places. In addition, periodically, the car that brought the Nestle veterinarian, nutrition experts, agriculture experts, and experts come to the quality of the breeder. Financial and technical assistance are also provided to help the cattle farmers dig wells and improve the well-irrigation system. The result? When Nestle was first launched this program, only 180 local breeder who participate. Nestle now have to handle about 75,000 cattle farmers. Milk production increased by 50 per breeder times, and the standard of living of the breeder took much improved.

An example is the hotel group Marriott International, which provides job training to the unemployed heavyweight. This program is run in a dozen cities in the U.S.. Marriott promising trainees work remains if they successfully pass. This program was not only to help the unemployed and the local community, but also Marriott. Why? In fact received the unemployment of more loyal to the company.

Company information-technology companies such as Cisco and Microsoft also does not lag. Cisco to provide free training on them-they are talented but can not afford to obtain certification from Cisco. Microsoft to assist schools in developing countries (including Australia) in the computer design curriculum subjects. When the students have graduated, their skills can be used to support products that are produced by two companies.

That's some examples of successful companies in the strategy and coordinate their CSR program. They not only succeeded in helping the environment and local communities, but also the company itself. Synergies between the two was very possible. If we want to complete the social problems, may be the main key is located on the involvement of the corporate sector at this time because of the strength of the corporation has exceeded the power of government and other institutions. Which is the main problem is how difficult it is to change the mindset for this purpose the company and see each other for behind CSR.

Who is your company said this challenge?

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2 comment:

Anonymous said...

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a7x on March 23, 2009 3:20 am said...

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