no money assignment
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Related Products Availability Reference No.
Case Study CSR0061
Teaching Note CSR0061-1
Who Says there is No Money in CSR?
Structured Assignment Reference No. CSR0061-2
This structured assignment was written by Raghava Krishna Neti under the direction of
Saradhi K. Gonela, Icfai Business School Case Development Centre.
Copyright © 2009, Icfai Business School Case Development Centre
No part of this publication may be copied, reproduced or distributed, stored in a retrieval
system, usedin a spreadsheet, or transmittedin anyform or medium– electronic,mechanical,
photocopying, recording, or otherwise – without the permission of Icfai Business School
Case Development Centre.
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Who Says there is No Money in
CSR?
STRUCTURED ASSIGNMENT (SA)
SA has a set of logically sequenced questions based on a specific case study. These
questions are meant to enhance the logical and analytical skills of the students. Students
are advised to attempt a SA only after they have acquired a reasonable conceptual
understanding as indicated below.
Structure of the Structured Assignment
Section Title of the Section Number of Questions
I Circumstances that forced organisations to adopt CSR as a 4
business policy
II Initiatives by organisations to adhere to the demands of ethical 5
consumers
III Wal-Mart Initiatives 4
IV Hindustan Unilever Limited (HUL) Initiatives 3
V Nestle India Limited Initiatives 3
VI Business Sustainability and Social Marketing: Improving 3
bottom-line
PREREQUISITE CONCEPTUAL UNDERSTANDING
(a) To understand theexpectations of consumers andotherstakeholders from thebusiness organizations, BoniniSheila
M. J., “What Consumers expect from Companies”, The McKinsey Quarterly, 2007.
(b) To understand a companies’ role in the society, Ian Davis, “What is the business of business”, The McKinsey
Quarterly, 2005.
(c) To understand the responsibilities of multinational corporations, Oppenheim Jeremy, “Corporations as Global
Citizens”, The McKinsey Quarterly, 2004.
(d) To understand how the social issues become strategic for organisations’sustainability, Bonini Sheila M. J., “When social
issues become strategic”,The McKinsey Quarterly, 2006.
(e) To understand the calculation of returns from resources employed on corporate responsibility, Margin Roger L,
“The Virtue Matrix: Calculating the Return on Corporate Responsibility”, Harvard Business Review, March 2002,
(f) To understand how the companies achieve competitive advantage by incorporating corporate philanthropy in its business policy, Porter Michael E and Kramer Mark R, “The CompetitiveAdvantage of Corporate Philanthropy”,
Harvard Business Review, December 2002
(g) To understand why companiestend to incorporate CSR in business policy strategicallyand itsrelationship with the
society, Porter Michael E and Kramer Mark R, “Strategy and Society: The Link between Competitive Advantage
and Corporate Social Responsibility”, Harvard Business Review, December 2006
(h) To understand howcorporate philanthropyadds valueto theorganisational goalsespeciallyto thebottom-line, new
business model and competitive advantage, Porter Michael E and Kramer Mark R, “Philanthropy’s New Agenda:
Creating value”, Harvard Business Review, November–December 1999.
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Who Says there is No Money in CSR?
For Use by the Student
Name of the Student :
Enrolment Number :
Programme :
Course :
Name of the Instructor :
To be Submitted on :
Signature of the Student :
Date :
For Use by the Instructor
Grade Awarded/Marks Awarded :
Remarks :
Signature :
Date :
INSTRUCTIONS TO THE STUDENTS
This assignment should accompany the case on Who Says there is No Money in CSR? developed
by Icfai Business School Case Development Centre.
• The learning from this SA can be enriching if it is attempted after having a prerequisite
understanding of concepts outlined in the previous page
• Start working on this assignment after carefully going through the case and grasping the
significant aspects of the case, including the ‘central dilemma’
• Refer to the case as often as needed, when you are working on this assignment. This is an
“open book” assignment
• Write your answers in as much detail as possible. Do not write cryptic or too brief answers
in telegraphic language
• Attempt to answer all questions in all sections• For a few questions, there may neither be ‘one’ answer nor a ‘correct’ answer. Therefore,
give your analysis and logic wherever required. Develop your answers in an integrated
manner drawing from your complete understanding of the case
• Use extra sheets, if necessary
• The time limit for completing the assignment and the weightages assigned to each section
in this SA for the purpose of grading will be announced by the instructor.
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Who Says there is No Money in CSR?
Circumstances that forced organisations to adopt CSR as a business policy
1. Ethical consumers adopted the policy of ‘positive buying’ and ‘boycotting or avoiding’
(page 2, para 1 of the case study). Why did ethical consumerism evolve? Explain its
principles and substantiate its role in compelling the companies to adhere to businessethics.
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Who Says there is No Money in CSR?
2. In 1971, ethical consumer groups in California have targeted Adidas (page 2, para 3
of the case study). Why did they targeted Adidas? Do you feel ethical consumers’
role is authenticated in campaigning against a company’s policies and practices?
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3. Governments of North East sea nations banned on future dumping of steel-built oil
installations (page 4, para 1 of the case study). Analyse the circumstances that lead
to this decision by the governments. Who has influenced the governments for this
decision?
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Who Says there is No Money in CSR?
4. Ethical consumerism forced organisations to rethink their business policies (page 5,
para 3 of the case study). Sketch the affects of ethical consumerism over the practices
of companies. How are companies reacting to the ethical consumers’ demands?
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Initiatives by organisations to adhere to the demands of ethical consumers
5. Shell started eco-friendly program in 1997 (page 6, para 3 of the case study). What
has made Shell to initiate the eco-friendly policies? Do you think Shell could benefit
from the eco-friendly policies? If yes, how? If no, why not and what other policieswould you suggest for Shell?
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6. Levi-Strauss started an ambitious project “Eureka” in 1999 (page 7, para 3 of the
case study). What is “Eureka”? Did Levi-Strauss initiate Eureka for the benefit of
the society? If yes, what kind of CSR activity is that? If not, what were the perceived
benefits of project Eureka?
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7. Microsoft’s initiative has solved the problem of shortage of ITmanpower and created
a talented pool for recruiters (page 14, para 2 of the case study). Did Microsoft
initiate this only for society benefit? If the company has also got benefited, explain
how? If not, how would you justify the expenses of Microsoft on this initiative?
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8. Bhopal incident has proved how a critical incident can change the destiny of a
company (page 6, para 1 of the case study). Briefly sketch the incident and its
consequences, both on the society and the company.
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9. In all the above examples the companies involved have merely reciprocated to a
company’s problem and painted it with CSR or the initiatives were adopted as a part
of their brand building activities. Can you cite some companies that have taken CSR
initiatives as novel policies and tried to stand benefited by fulfilling responsibilities
towards the society?
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Wal-Mart Initiatives
10. Lee Scott, president and CEO unveiled the vision and commitment in his 21st Century
Leadership Speech (page 8, para 4 of the case study). Explain in brief the vision and
commitment. What has made the company to take up that commitment?
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11. Wal-Mart has formulated sustainability criteria for its suppliers on packaging (page
9, para 1 of the case study). What did this initiative mean for suppliers? Did this
initiative fetch any results for Wal-Mart? If yes, how? If no, why not?
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12. Wal-Mart launched an action plan spending $500 million a year to improve the
efficiency of its fleet (page 9, para 2 of the case study). Has this initiative resulted in
savings for Wal-Mart?
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13. Has Wal-Mart achieved the expected objectives by implementing such policies and
practices? Were these policies restricted to just fulfilling the initial objectives? Has
the company been able to extract other benefits also? If yes what were they? If no
what do you suggest the company to get better results with same financial
commitments?
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Hindustan Unilever Limited (HUL) Initiatives
14. HUL has prioritized on the initiatives which are sustainable and have long-term
benefits for business and society (page 10, para 2 of the case study). What does
sustainable and long-term benefits mean in this context? Briefly explain the initiativeand analyse how the said initiatives could help the company achieve its goals.
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15. Under project Shakti Rural women will be taking HUL stocks on Cash and Carry
model and the required finance will be provided by local self help groups and micro
finance institutions (page 10, para 2 of the case study). How will you categorise this
as a social initiative? Can you term Project Shakti as a social marketing? Analyse
how rural women would be benefited by this initiative.
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16. Project Shakti reached a break-even point on operational expenses in 2004 (page 10,
para 3 of the case study). Did Project Shakti deliver any results for HUL apart from
financial yields?
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Nestle India Limited Initiatives
17. Nestle understood the lack of basic infrastructure resulting in hindrances of
establishing local sources of milk and focuses on improving the infrastructure in
Moga (page 12, para 4 of the case study). How did Nestle start its operations inMoga in 1962? Analyse the factors that have contributed for Nestle’s success in
Moga.
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18. Nestle’s initiative resulted in sustainable supply of high commodity sources (page
12, para 5 of the case study). How did Nestle’s success help local farmers? Also
analyse the indirect benefits that the company has enjoyed in Moga district.
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19. How Moga experience would be beneficial to global company like Nestle? Do you
think the company could leverage these learning for higher revenue and better
margins?
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Business Sustainability and Social Marketing: Improving bottom-line
20. How do you differentiate between Social Marketing and CSR?
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21. Companies understood CSR can minimize negative effects of the ethical consumerism
and contribute in a positive manner to the development of its workforce and
community and ensures long-term sustainability (page 5, para 2 of the case study).
Analyse the relationship between CSR and sustainability. Explain how incorporation
of CSR in business policy helps the company in long-term sustainability.
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22. What information do Exhibit I, Exhibit II and Exhibit III convey? Do they have any
relationship with the initiatives taken by the companies? Examine how
implementation of CSR improves the bottom-line, innovation process, creation of
new business models and ensuring competitive advantage for the companies.