Course Code: MGT-304

Course Title: Corporate Social Responsibility

Lecture / Week No. 14

Department of Accounts
Developing Strategic Partnerships
Contents

1. Key Concept of Strategic Partnership

2. Importance of CSR

3. Strategic Development

4. Why Develop CSI

5. Partnership with nonprofits as strategic CSR

6. Three guiding principles to create value through CSR:

7. Examples of Partnership of Different Organization

Reference No.1 Topic: key concept of Strategic Partnership

Corporate Social Responsibility initiatives have overcome the

stigma of being a distraction; something to be suffered. Smart
companies now recognize CSR as an opportunity to significantly
strengthen their businesses – while building and renewing
human, social and natural wealth.

Finding the right partner is absolutely critical to the success of a

CSR strategy; and there are steps that can be taken to ensure a
partnership co-creates value for both business and society.
Reference No.1 Topic: Importance of CSR

Most companies now understand the importance of corporate social responsibility (CSR) and recognize it
as a tool to strengthen their businesses while contributing to society at the same time. The challenge they
now face is how to deliver CSR strategies and create real value.

This Idea offers suggestions to help executives move towards policies that truly co-create value for their
business and society. However, there is no simple formula or easy answers on what to do or how to do it;
rather, a step-by-step approach following guiding principles should be taken
Reference No.1 Topic: Importance of CSR

For Example:
 Hindustan Unilever Limited’s Project Shakti; they overcame the
challenge of reaching and serving India’s rural markets by actively
seeking to understand critical societal and organizational needs.
They partnered with three self-help groups that appointed female
entrepreneurs in chosen villages. Their success was evident by
2008, when Shakti had provided employment for 42,000 women
entrepreneurs covering nearly 130,000 villages and 3 million
households every month. In the same year, the company’s sales
through the project approached $100 million.

Another example

Unilever’s Lipton unit, which initiated a pilot program in 1999 in Kenya to

apply company sustainability principles to the production of tea.
Reference No.4 Topic: Strategic Development

A company–nonprofit partnership to support causes has become a popular corporate

social responsibility (CSR) practice that adds value to both partnered organizations (Lafferty
& Goldsmith, 2005).

From a nonprofit's point of view, a company partner works as new sources of revenue,
which is vital to a nonprofit's operation (Park, Hitchon, & Yun, 2004).

A company, on the other hand, takes advantage of the trustworthy images and expertise of
nonprofits that may attenuate consumers' skepticism toward CSR practices while
enhancing consumers' support of both organizations and CSR.
 Reference No.6 Topic: CSR and CSI
Corporate Social Responsibility & Corporate Social Investment

Corporate social investment originated from philanthropy when the value it added to the reputation of the
organization was recognized.

Previously, the terms CSI and CSR were used interchangeably, but have now been defined separately. CSR refers to an
organization's total responsibility towards the business environment in which it operates. CSR describes the broader
solution to triple-bottom-line matters of the 3Ps – profit, people and planet.

CSI is one of the sub-components of CSR and aims to uplift communities in such a way that the quality of life is
generally improved and safeguarded.
Reference No. 6 Topic: CSI investment and portfolio
CSI Investment Portfolios
Social Entrepreneurship Development
Adult Basic Education and Training (ABET)
Agriculture and food security
Arts and Culture
Early Childhood Development (ECD)
Education
Energy
Environment
Health
Information Communications Technology (ICT) and Telecommunications
Infrastructure
Job Creation
Orphaned and Vulnerable Children (OVC)
Sports development
Skills Development
Reference No.6 Topic: Why develop a CSI Strategy?

What can CSI do for you?

•By becoming a good corporate citizen you can improve your organization's competitive edge in terms of
attracting and retaining investors, clients and employees.
•CSI demonstrates the 'heart' of your company and can enhance your credibility.
•Improve the living conditions of your employees, their families and the communities in which you operate,
thereby creating a sense of employee satisfaction and loyalty.
•Contribute to and support your marketing tools: i.e. brand awareness.
•Align your company with industry charters: SRI (Social Responsibility Index) and GRI (Global Reporting Index).
•Stabilize the social and economic environment.
•Generate new business ideas.
•Generate inquiries about your business operations.
•Enhance your company’s corporate image and ultimately your Return On Investment.
Reference No.4 Topic: Partnership with nonprofits as strategic CSR

Partnership with nonprofits as strategic CSR

Broadly, CSR can be defined as a corporation's involvement and investment of its resources for the
betterment of society and the public that has supported the organization (Frederick, 1994). The concept of
CSR expanded in the late 1950s and 1960s in response to the increased business regulations, but the
concept progressively rationalized and associated with broader organizational goals such as reputation
management (Lee, 2008).

According to Carroll (2000), “strategic philanthropy” helps an organization to achieve its objectives and to
create social benefits at the same time (p. 37). A growing number of studies confirmed that consumers have
generally favorable attitudes toward companies that support social causes (Bae & Cameron, 2006), and are
more likely to purchase products from socially responsible companies (Perera & Chaminda, 2013; Sen &
Bhattacharya, 2001).
Reference No.1 Topic: Three guiding principles to create value through CSR:

Three guiding principles to create value through CSR:

Concentrate your CSR efforts: the greatest opportunities will come from areas where
the business significantly interacts with society
Build a deep understanding of the benefits: be open enough to understand issues
both from a business and a societal perspective.
Find the right partners: those that benefit from your core business activities and
capabilities, and that you can benefit from in turn.
The Perfect Partner: If you are struggling to identify the long-term or tangible benefits
of a partnership, or if most of the benefits are one-sided, then you must go back and ask
if significant mutual value creation is going to be possible through this opportunity. The
following dimensions should be considered: time frame; nature of benefits; and benefit
split.
Reference No. 4 Topic: Partnership of Parco

EDUCATION
Schools & Clinics Support Program
PARCO’s cross country pipeline network and the Mid-Country Refinery
makes us next-door neighbor to many remote and underprivileged
communities. Since 2007, PARCO conducts an extensive Schools and
Clinics Support Program which aims at improving the education and
health infrastructure in adjoining communities by supporting Rural Health
Centers, Basic Health Units, Primary, Middle and Secondary Schools,
being run by Government of Pakistan.

Under this program, PARCO has provided assistance in kind to several

Government schools, basic health units and rural health centers along the
pipeline stations and Mid-Country Refinery. PARCO`s assistance to these
institutions has raised communities` interest to enroll their children in
these refurbished and well-maintained schools diverting them from child
labor to primary education, raising the literacy rate.
Reference No.4 Topic: Partnership of PARCO

Partnering with The Citizens Foundation (TCF)

PARCO has built and supported three schools with The
Citizens Foundation (TCF) – a reputable NGO working
in the area of imparting quality education – at Karachi
and Qasba Gujrat, near PARCO Mid-Country Refinery.
These schools employ all female staff belonging to the
nearby communities. These campuses have generated
employment for the local women to earn a decent
living.
 Reference No. 3 Topic: Taking Action and Expanding Choices of People

Taking Action and Expanding Choice People’s tastes and preferences

are changing, so we’re changing, too.

Driven by our passion for consumers, we

have been shifting our mindset and culture,
as well as the way we measure our success,
resulting in bold action to transform our
portfolio.

Gradually reducing sugar across our entire

portfolio1
Offering more new drinks that provide
benefits like nutrition and hydration
Giving people the information they need to
make informed choices
Reference No.2 Topic: CocaCola Partnership with southern &Eastern Africa

Across Southern and Eastern Africa, we are partnering with local

communities, NGOs, industry and consumers to collect packaging,
helping to ensure that it doesn’t end up where it doesn’t belong

As a global business, The Coca-Cola Company operates in countries

which don’t have regulations or taxes in place regarding plastic
packaging; however, we have taken it upon ourselves, with our bottling
partners, to collect and recycle a can or bottle for every one we sell by
2030 as part of a vision called World Without Waste. And we are doing
this in many parts of Southern and Eastern Africa.
 Reference No.2 Topic: Topic: CocaCola Partnership with southern &Eastern Africa

COCACOLA recognize that plastic is a big driver for the circular economy and is used in many other products besides
bottles, including cars, textiles and carpets. To establish the basis for a sustainable circular economy, we’re designing,
collecting and partnering to enable recycling and to turn our bottles into valuable resources, which will create more
jobs and drive a greener economy.

Three pillars to Recycle of Plastic by Coca-Cola

Our VEPR for our plastic packaging revolves around three pillars: design, partner and collect. We’re designing our
packaging to be 100% recyclable across our expanding portfolio by 2025, and by 2030, all our packaging will contain
50% recycled materials within it. Currently in South Africa, all Coca-Cola PET packaging is made with at least 15%
recycled.

Samsung Corporate Social Responsibility: Bringing Light to Ethiopia Improves Life for Youth
https://www.youtube.com/watch?v=gt-ga9hdZ0w
Samsung Corporate Social Responsibility: Bringing Light to
Ethiopia Improves Life for Youth

https://www.youtube.com/watch?v=gt-ga9hdZ0w
References / Resources

• Pet therapy. (n.d.). Retrieved From

https://www.ideasforleaders.com/ideas/csr-creating-value-through-partnerships
[1]

• Pet therapy. (n.d.). Retrieved from https://newafricanmagazine.com/19362/[2]

• Business & Sustainability Report (2018)[3]

• PARCO. Retrieved by https://www.parco.com.pk/csr/education-health/[4]

• Article  in  Journal of Business Research · March 2016. Retrieved from

https://www.researchgate.net/publication/298800670_Strategic_partnerships_wit
h_nonprofits_in_corporate_social_responsibility_CSR_The_mediating_role_of_per
ceived_altruism_and_organizational_identification [5
]

• Pet therapy. (n.d.). Retrieved Fromhttps://www.csisolutions.co.za/why-csi.php {6}