GGSR CHAPT 2

• Strategic Management


  A process of creating a competitive advantage over its competitors and sustaining this advantage in the long term
• Strategic Management


  1. Establish goals/objectives and scan the environment

  2. Formulation

  3. Implementation

  4. Evaluation
• Vision


  What the company envisions itself to be in the future or what it wants to become
• Mission


  It describes what the company is all about, who they are, what and how they do things, and for whom
• Goals


  Desired outcomes of planning, broader than objectives
• Objectives


  Aimed targets that are needed to achieve goals
• External analysis


  Looks at the external opportunities and threats of a particular industry
• Internal analysis


  Looks at a company's strengths and weaknesses by assessing its resources
• Key Stakeholders


  • Shareholders
  • Customers
  • Employees
  • Suppliers
  • Society (government, civil society, institutions)
• Stakeholder Theory


  Companies are responsible for generating reasonable profits for their shareholders but should also be responsible for their stakeholders' well being
• When a manufacturing company product's industrial waste and dumps it into a river, residents affected by this unethical practice will demand the proper disposal of chemicals as it affects their right to clean air and water
• Employees of the company may also be exposed to the toxic chemicals in making the product and the right to demand protective gear and processes that will not be harmful to them
• Strategic CSR


  Sharing shared values among the company's shareholders is critical and essential to the CSR agenda
• Effective CSR Strategy


  1. Identify the goals/objectives of the company

  2. Scan the environment by looking at the internal and external situations

  3. Formulate a CSR strategy that is aligned with corporate operations

  4. Implement the CSR program with consistency

  5. Evaluate and manage stakeholder relationships effectively
• Leadership


  • Follow the lead of "Management's heart" - Authenticity is the key
  • A champion is necessary for CSR to thrive and be successful
  • Support from top management is a critical area since resources will come from the board or executive management
• Employee Engagement


  • CSR can be strengthened through employee volunteerism
  • CSR activities positively influence employee attitude and behavior at work
• Collaboration


  • Government's role is to ensure that the essence of corporations is to provide for the common good (stakeholders)
  • Businesses or corporations are consciously aware of the impact of their activities on the public, including primary and secondary stakeholders
  • Alliance or partnerships with government, civil societies, business and other stakeholders are important sources of legitimacy
• Communication


  Communicating the success of a company's CSR initiatives creates an immediate effect on strengthening buy-in within the company and encourage participants to perform better
• Value Creation


  • The creation of sustainable value for its stakeholders is the ultimate goal of businesses
  • Corporations that create value for stakeholders through sustainable use of natural resources, risk reduction, reputation, trust, benevolence, transparency, collaboration and many more value-added initiatives will have truly performed their roles as ethical and legitimate corporations in our society
• Engaging in business and generating profits is not bad, it is necessary for human progress and development
• The basic problem is when individuals or companies are so focused on profit maximization. From this other issues crop up, like externalization of operational costs, greed, and corruption to mention a few
• Scentimental Inc., a Filipino SME owned by Mrs. Jin Balmadres, has been in operations for over 20 years. She takes pride in supporting the local manufacturing industry with her design creativity
• Given their success in the retail and wholesale of decor products with retail giants SM and All Home, as CEO, Mrs Balmadres has intermittently supported certain charities over the years
• Moved by the much-needed relief for the residents affected by the Taal volcano explosion in the early 2020, she was advised by her management consultant to work with a foundation
• She decided to follow her consultant's advice and work with a foundation. She had her secretary set up an appointment with her chosen foundation the following week