Rennes School of Business

Graduating Project
Branding Corporate Social Responsibility
MSc. Digital Marketing Communication

Student Name: Devyani Banthia

Student ID: ETU20151937

Supervisor:
Acknowledgments

I would like to convey my appreciation to Rennes School of Business for providing me a

wonderful opportunity to conduct a research thesis as a part of Masters curriculum. The skills
and expertise that I have gained throughout my research will be very beneficial for my career
development. The entire period was very intensive for my learning in both personal as well as
scientific area.

I would like to express the deepest gratitude to my supervisor Dr. Neacsu lonela for her valuable
guidance and providing the tools which were needed for completing the research in the right
direction. I would also like to thank all the participants who took out so valuable time from their
busy schedule and were part of my survey.

I would also like to express the greatest appreciation to my mother who has done a
wonderful job in raising and me and provided wise counsel. Finally thanks to all my friends who
have provided me sincere encouragement in not only my research but things beyond that.
Abstract:

Today social responsibility of business is a reality. In the current economic climate, it

plays a vital role and is an important element of a successful business in society conscious
individuals of their responsibilities. The valuation of the concept of social corporate
responsibility entails a new mentality in business, which is a change in consumer behavior. More
and more companies change their marketing practices, giving them new contours and a more
ethical appearance. The objective of this paper is to highlight the interface between Social
Responsibility and Social Marketing. Thus, were taken into account aspects of social
responsibility, its ideological tendencies, its historical context and its philanthropic aspect, we
finally identified the concepts of Social Marketing as a strategy to promote social actions. The
methodology is an exploratory study based on literature searches. One reason independently
verifies the origin of the approach to social responsibility, either by its organizational culture or
because of market requirements. For companies, a significant part of the commitment to the
concept of socially responsible practices to develop social marketing strategies, is related to the
fact that long-term investment in social projects, increase brand awareness, providing
competitive advantage for the company over its competitors. By investing in environmental
socio shares to obtain a financial return through better acceptability of the brand in the market.
Introduce marketing techniques in socially responsible action means not only sell products and /
or services, but also consider the human side of various "stakeholders" involved in a sustainable
development approach.
Introduction

Today's society is very attentive to the changing economic environment; it is increasingly

demanding ethical corporate behavior. Based on the systemic definition of business as social
actor influencing and influenced the social responsibility of the company, an important element
for survival. The main function of the company is not restricted to profit maximization, but it
also recognizes the multiple objectives of the various stakeholders, promoting thus the social
development. Against this background, managers need insights on the social strategies used so as
to align them with the economic objectives of the companies, satisfying in this way the internal
stakeholders and external actors.

The objective of this article is to highlight the link between social responsibility of business and
social marketing. Thus, were taken into account aspects of social responsibility, its ideological
tendencies, its historical context, as well as his philanthropic side.

The thesis also deals with the environmental pillar of CSR, its structure background, current
form and the tools that companies can apply and the roles played by employees in their
implementation and examine the communication strategies of CSR. It is not enough that
businesses make CSR: must also communicate their social responsibility, so that this is for their
benefit. Ethical issues in communication strategies which will examine the concept of social
marketing, marketing activities aimed at promoting the adoption of an idea, a behavior or a
lifestyle deemed socially valid. The examination will focus therefore on the main instruments at
disposal of companies to communicate their Social Responsibility: The Code of Ethics, the
environmental balance, the social balance and the strategy of cause related marketing (CRM).

Finally social marketing concepts were identified as social actions dissemination tools. The
methodology is an exploratory study based on literature searches.
Review of Business Context and theoretical background

Companies and Communication: beyond the advertising

The company is a complex organization within which operates different components that,
working in synergy between them, allow the company to reach its objectives. Among these
components, communicative that plays a major role: the company, which is often seen as a
reality profit, must communicate with the outside, especially because it is outside that are its
potential customers. Traditionally, therefore, it is through the communication that the company
draws its customers and generates profit.

For a long time, therefore, the concept of communication has had for businesses only one
meaning: advertising. The farmer was asked to devote part of its profits to the promotion of the
products of his company: in this way, he expected an increase in sales, and therefore a growth of
profit itself.

Starting from the middle of the XIX century the reality begins to change. Grows in companies
the awareness that the recipients of your messages are not only customers from convince to buy,
but an audience much wider, composed of a variety of actors with which it is instead entertain
solid relations, not only of a commercial nature. Ends so the unchallenged domain of advertising
communication and opens a new era, that of Public Relations: an instrument that is not intended
to replace that of advertising, but simply the Integra.

This section is dedicated to the analysis of the public relations activities.

The significance of public relations in the business strategy

Paragraph intends to analyze the decisive role that a careful policy of Public Relations plays in
the context of business communication. Several authors (including Invernizzi, 2005) maintain
that today the communication has become an instrument marginal for the support of the
corporate image, an indispensable component for the strategic management and operation of the
company and for its success. The main reason is that the company is increasingly considered as a
complex system of relationships supported by and governed through different forms and modes
of communication. In this context, Public Relations therefore assume crucial importance for
business communication.

History of Public Relations: the four models and the current perspective

The US author James Grunig has proposed in 1984 four models of Public Relations. This is a
conceptual processing relevant because it manages to describe four different ways to make
public relations with the respective peculiarities.

The four models are:

The model Press agency-Publicity, or of Barnum

The model of Public Information, or Lee

The model two-way asymmetric, or of Bernays

The model two-way symmetric

Each of them is stated in the United States, from the middle of the nineteenth century to today, at
a given moment in the history of Public Relations. It is however proper to remember that
everyone continues to exist even in subsequent periods.

The analysis of the four models below reproduces the one proposed by Invernizzi (2005),
which adopts four criteria to differentiate and define the individual models: the objective of
the public relations activities, the nature of the communication enabled, the communication
model confirmed, the research activity carried out before or after the communication
activities.

A. Model Press agency-Publicity (or Barnum)

This model it is stated in the United States shortly before the mid 1800's, an era of press
agency subsequently defined the era of "the public be fooled".

The objective is to make public relations an instrument of propaganda in order to

develop the fame and the fame of the organization.
The nature of the communication is to a track (Organization AE public), with scant
attention to the completeness of the information provided.
The communication model is unidirectional, without any feedback.
The research activity on the part of the communicators or press agent is practically
absent.

b. Model Public information (or Lee)

It imposes at the beginning of the 20th century until the end of the First World War. It is the
time of "the public be informed".

The objective is to disseminate accurate information to the public.

The nature of the communication is still a track (Organization AE public), but with
the commitment to providing information complete and truthful.
The communication model is always unidirectional, lacking any feedback.

Model Two-way asymmetric (or Bernays)

Its golden period it has over the years '20, when the professional Edward L. Bernays changed
the way of making public relations: ended the era of "the public be informed" and began the
era of the 'The public should be understood and its need considered".
 The aim is in this case that of the scientific persuasion, targeted to accept the point of
view of organization.
The nature of the communication is a two-way (Organization AE public and vice
versa) but skewed, in so far as the effects of the communication between the two
actors involved are unbalanced in favor of the organization.

The model of the communication is bidirectional, with the presence of a feedback

from the public useful to measure the results of the activity.
The research activity is carried out, and proposes to identify the preferences of the
public and to measure attitudes and behavior before and after the intervention of
public relations.

d. Model Two-way symmetric

According to Grunig says in the Fifties: professionals who support it in the most convincing
way are Cutlip and Center in their text Effective Public Relations, published in 1952.

The objective consists in the mutual understanding between the organization and its
various public; the professional plays the role of mediator between the organization
and the public.

The nature of the communication is a two-way (Organization AE public and vice

versa), and consists in a dialog in several voices rather than in a monologue with a
single voice.

The communication model provides a mutual influencing such that it is impossible to

describe the organization as "issuer" and the public as "recipient": both are "Groups"
that influence each other, and these influencing produces effects for both.

The research activity plays a decisive role: it is in fact made to evaluate whether the
intervention of public relations has improved the understanding that the public has of
the organization and that the management has its public.
As already said, the four models not only succeed in time starting from the middle of the
nineteenth century, but still live in reality today. Of course, with appropriate modifications
and adjustments that have spoken recently in older models. For example, the model of Public
Relations adopted by ERG in Syracuse and the province is of the type two-way, even if not
completely asymmetric nor symmetric: in fact has characteristics of both models. You can say
that its primary objective is to understand the needs of the stakeholders, also called to evaluate
the real needs of the company on the territory. The nature of the communication is two-way
and realizes a feedback, even if it is perhaps a little biased toward the company, which
proposes as "issuer" that is aimed at a "public" heterogeneous composed of
several stakeholders. The research activity is made, even if mainly tends to measure attitudes
and behaviors of the audience of stakeholders.

Figure 1 - The four models of Public Relations

Press agency Public Two-way Two-way

Publicity Information Asymmetric Symmetric

Objective Propaganda Diffusion of Persuasion Mutual
Information Scientific Understanding

True
The nature of
the One-way One-way Two-way but Two-way.
Communication Asymmetrical Dialog
Model of Unidirectional Unidirectional Bidirectional Mutual

Communication (Feedback) Influence

Evaluates the
Measure the effects
Activities of Absent The Beginnings Attitudes of The activity of

Search Public R.P.

Source: Invernizzi, 2005

Core PR Vs Extended PR

After dashed, albeit in a schematic and partial way, the history of Public Relations up to the
latest trends, it is now appropriate to try to arrive at a definition of this concept. This is not an
easy task: as already seen, in fact, there are various models of public relations, and different
ways to perform this task. It is necessary to make a short introduction, which takes account of
the different ways of understanding the Public Relations.

Traditionally, it is possible to distinguish two different interpretations of the public relations

activities: the first, more restricted, definable Core PR, the other, wider, definable Extended
PR.

The concept of Core PR descends from the tradition of Public Relations, which identified this
activity with that of the communication aimed to influence public opinion and then mostly
based on external communication. This definition therefore focuses only on the specific
activities of the Public Relations, those most closely linked to their particular history. Is the
definition which damage, albeit indirectly, businesses.

The second definition, that of Extended PR, instead comprises every possible communication
activities within an undertaking. The reference, therefore, enlarges conception of Public
Relations, which seeks to include every form of relation and communication of the company
with all its stakeholders. This is the definition that tends to give the scholars of Public
Relations, Trade associations and the practitioners themselves.

In this work we will adopt the prospect of extended PR, just to clarify how all activities relational
and communicational of an undertaking must be designed and managed in a unitary manner and
coordinated, avoiding contradictions and internal inconsistencies that can totally undermine the
effectiveness. And it is precisely with reference to the concept of Extended PR that in the next
section we will examine the acronym PENCILS proposed by Kotler, which gives an idea of the
variety of initiatives that fall within the scope of Public Relations. Among these initiatives also
include the "Social Investments", i.e. the activities that testify to the Corporate Social
Responsibility.
To conclude this section, below are the definition of Public Relations proposed by Invernizzi,
which makes explicit reference to the concept of Extended PR: "The profession of public
relations is constituted by the whole activity of listening and reflective, relational and
communicational managed with managerial techniques in order to collaborate in the
definition of corporate strategies to support your business goals and to strengthen the
reputation, through a high degree of coherence and synergy realized between the set of
initiatives communicational and administrative actions and productive.

The public relations activities are divided into Basic Services, in specialized
services and in managerial activities.

The basic services are represented by the relations with the media and by the
organization of events.

Specialized services are represented by a public affair, from crisis

communication, from financial communication from the communication of social
responsibility and, sometimes, from internal communication.

The managerial activities are those with which they are designed, managed and
coordinated services Public relations and with which they are evaluated and measured
the results; also those with which they are made the necessary coherence and synergies
with the acts of management and productive" (Invernizzi, 2005, pp. 42-43).

As can be seen, the subject of this work is an activity that falls within the range
of specialized services.

The stakeholders and the "pencil" of Kotler

Of stakeholders has already been mentioned earlier, highlighting the most recent changes
underway in the sector of Public Relations. The importance of this concept emerges in all its
evidence whereas nowadays relations
The public are no longer a mere instrument through which the company "speaks" to his
audience, but a broader strategy that enables the undertaking to "talk" with its many
interlocutors. Stakeholders, precisely.

The analysis of the theory of stakeholders is dedicated this paragraph. In a first part will take
into account the concept, giving a definition, ripercorren done evolution and evaluating its
importance for the business strategy.

Subsequently, the concept of stakeholders will be used to analyze in detail the instruments at
the disposal of the Public Relations. You will examine then the acronym PENCILS coined by
Philip Kotler, and each component thereof will be made in relation to a specific type
of stakeholders.

Stakeholders: analysis of a concept

The origin of the concept of stakeholder goes back to 1963, when the Stanford Research
Institute used for the first time this term to indicate those groups that provide essential support
and interact with the institution undertaking. Literally: stake (interest), holder (carrier), i.e. a
subject that has at stake in the actions of the company.

From the outset, the concept of stakeholders has attracted the interest of many authors who
have identified a central element for the analysis of business strategies. Today, the definition
more used is the one proposed by Freeman (1984, p. 55, my translation): "the primary
stakeholders, i.e. the stakeholders in the strict sense, are all those individuals and groups well
identifiable from which the company depends for its survival: shareholders, employees,
customers, suppliers and government agencies. In the broadest sense stakeholders is each
individual well identifiable that can affect or be affected by the activities of the organization in
terms of products, policies and working processes. In this broader significance, public interest
groups, protest movements, local communities, government entities, business associations,
competitors, trade unions and printing, are all to be considered stakeholders"
On the basis of the definition of Freeman and taking account of the successive contributions of
other authors, we can identify two different types of stakeholders:

The primary stakeholders are those without whose continuing participation in the
undertaking may not survive as a complex working. Their peculiar characteristic is
the fact that they are conscious of being directly involved in the work of the
company because its action has consequences on them.

The secondary stakeholders instead comprise those that are not essential for the
survival of a company or which exert an indirect influence on the undertaking itself.
In this category are therefore including individuals and groups who do not have a
direct relationship with the organization, are however affected by its activities. Their
peculiar characteristic is that they may or may not be aware of their role.

In recent years, there have been proposed numerous other classifications. Some authors have
distinguished between social stakeholders and stakeholders not social, identifying then within
these two categories stakeholders primary and secondary.

An interesting taxonomy classifies four stakeholder groups:

The supportive: from directly involve;

The marginal: to be monitored;

The not supportive: from which we must protect itself;

The mixed blessing: with whom you can collaborate.

The list of contributions that provide definitions and classifications of stakeholders is

immense, and is beyond the scope of this work ripercorrerla in detail. We will restrict
ourselves to these few outline, for now shift to an analysis of the importance that
stakeholders assume for the strategy of a company.

To understand the crucial role of stakeholders toward an undertaking we must stress that
today more and more, the company cannot be considered as an isolated reality, divorced from
the context in which it operates, on the contrary, the company is an integral part of the
environment that surrounds it, one of its essential component, as are all its interlocutors, i.e.
stakeholders , that are part of that environment and that the company cannot and must not
neglect. On the contrary, it is appropriate that the organization maintains a continuous and
consistent dialog with its stakeholders.

To simplify this ratio bidirectional undertaking - stakeholders can be represented as in figure

2. The scheme takes one proposed by Sustainability, an organization founded in 1998 which
offers advice on the theme of sustainable development by identifying the tools that allow you
to reconcile the economic strategies and competitive with those social and environmental
concerns.

As the figure shows, the company is constantly engaged in a constructive dialog with all
its stakeholders: this is the only way in which it can pursue its goals without betraying the
expectations of its interlocutors. And it is important that the expectations of stakeholders are
not disappointed: If this happens, the firm would lose the confidence and support of its
interlocutors, both internal and external, and would therefore be obliged to operate in an
environment to her hostile.

Figure 2 - The bidirectional relationship company - stakeholders

According to some authors, the key factors for success in the dialog with stakeholders are
seven:

1. Identification of important stakeholders;

2. Flexibility in relations and the propensity to change;

3. Sharing information;

4. Possibility to have real spaces to communicate;

5. Design and pursuit of realistic expectations;

6. Sharing of priority on the agenda;

 7. Possibility to develop trust and mutual understanding.

Wanting to pull the sums of what has been said so far, there is to say that it is no longer
possible to ignore the existence of a reciprocal influence between a company and its
environment, two elements between their interrelated and interdependent. In fact, the forces
that today operate on a company are the interests and rights of stakeholders and the
managerial responsibility, because companies more competitive are those that bear the
interests of stakeholders.

An undertaking that intends to carry on its activity in the long term needs that
stakeholders the perceive consistent with their interests, expectations and visions; the
company, for its part, must identify its stakeholders and establish with them a hierarchy of
relationships between their consistent.

Needed an interactive relationship between management and its environment, which has
strong and sustained values in common, so as to create a two-way relationship and
symmetrical, linked to the values of the organization but also on those of stakeholders.

Between the company and the stakeholders is a real interaction, a continuous input and output
of information that lead to the achievement of their objectives.

The instruments of Public Relations: The acronym PENCILS

The analysis of the theory of stakeholders before presented, although inevitably schematic and
partial, can be useful because it introduces a central topic of this chapter: the instruments
which the public relations professionals have to carry out their activities.

Then lead to the heart of this work, i.e. to the analysis of Corporate Social Responsibility
and its communication strategies.

Around the theme of the instruments of Public Relations were paid rivers of ink:
abound the manuals of business communication that provide detailed explanations and
detailed on the techniques and on the means to be employed to carry out effectively the
 public relations activities. There is no intent of this work specifically to dwell on these
topics. Nevertheless, it is appropriate to give a glance, albeit briefly, to the variety of
tools used by public relations professionals.

Without any claim of completeness and exhaustiveness, herein, reference will be

made to a curious acronym coined by Philip Kotler (reported in Ferrari,
2005): PENCILS (literally "pencils"), which sums up well what it means to carry out
activities of public relations.

P = Publications. All publications and communications on paper, video or magnetic.

E = Events. Special events: conferences, conventions, congresses; sporting and cultural

events; business events; etc.

N = News. News: Press Office and relations with the media. Information on the facts and
on the positive aspects of the activity of the undertaking.

C = Community involvement. Relations with the local community.

I = Identity tools. All activities and all instruments which contribute to define the
identity of the company (from the brand to the letterhead; from business cards to
the corporate clothes).

L = Lobbying. Relations with the system public decision-making, to promote measures

favorable to the company/organization or counteract those unfavorable.

S = Social investments. Social Investment. Initiatives that testify to the Corporate Social
Responsibility

Each letter of the acronym indicates a specific lever which can be used by public relations
professionals to carry out their activities. It is important however that all these tools are used
synergistically.
Consistent and unitary, so as to constitute integral parts of a single public relations
strategy.

Organize events, take care of the relations with the media, strengthen the relationship
with the community of belonging, strengthen its brand identity, engage in a dialog with
politicians to establish with them a trust relationship, devise a plan of Social
Responsibility: all this is Public Relations.

As already said, it is advisable that all the various levers are used in an harmonic, thus
avoiding that may arise inconsistencies that impair effectiveness. Nevertheless, every
single lever can be used to refer to a specific type of stakeholders.

Publications: this is a category very wide, which includes virtually every form of
communication of the undertaking. Therefore, stakeholders to which this tool is
addressed are numerous and will vary depending on the type of publication. May be
internal (which is the case for employees, addressed the house organ, i.e. the internal
publications to the company) or external (shareholders, customers, suppliers,
institutions, etc.).

Events: in this case also the stakeholders recipients are many and are different
depending on the type of event organized. The corporate parties involve employees;
events commercial customers and suppliers; sporting and cultural events a general
audience.

News: stakeholders are the means of mass communication (press, television, web).
Depending on the information to be transmitted the media can be local or national.

Community involvement: This tool is used by public relations professionals to

involve the local communities in which the company is located, which represents a
decisive interlocutor for the company. The stakeholders are in this case the families
of employees, local groups of opinion, associations, trade unions, etc.
 Identity tools: since the tasks and tools that define the identity of the company,
the stakeholders are referenced in this case all the subjects that come into contact with
the company and who want to know it. This is primarily external stakeholders.

Lobbying: through this tool you tip to involve public institutions and political
parties, so as to establish with them a dialog which will give rise to a confidence in
the company. At the local level the stakeholders are Municipalities and Provinces; at
regional level are the regions; at national level are the Parliament and Ministries.

Social investments: the reference stakeholders are in this case the non-governmental
Organizations (NGOS), associations and groups involved in social assistance. The
company is aimed at all the realities of the Third Sector. At a national level the
companies involved with social communications campaigns, at local level recipients
are bodies, organizations and non-profit associations, the causes of which are
incurred by the undertaking.

This overview of the instruments of Public Relations helps us enter into the subject of this
work, which as already said is the Social Responsibility of Companies, corresponding to the
last item of the pencils acronym: Social investments. In line with what has been said so far, it
has followed an approach for stakeholders, then move in the following chapters to a more
detailed analysis.

The Social Responsibility undertaking: An approach for stakeholders

In this paragraph you will attempt to widen the perspective of analysis so far followed,
Entering expressly within the topic of this work. The concept of stakeholders, as analyzed in
the preceding paragraphs, may in fact be very useful to understand the reasons which in recent
years have led companies to develop a policy of social responsibility. It is under this premise
that the doctrine has developed an approach for stakeholders to Corporate Social
Responsibility.
The Corporate Social Responsibility today presents itself as a model of the strategic
management of the company, according to which those who take the decisions and has the

Effective control over the company (the entrepreneur) has fiduciary duties not only in respect
of the single stakeholders protected by the right of ownership (shareholder), but toward the
whole audience of stakeholders (customers, employees, shareholders, suppliers, investors,
Competitors, Institutions and control bodies, local community and territory) (Beda, Bodo,
2004).

In this way the company expands its management of its reports, passing from a vision mono-
stakeholders to a multi-stakeholder, able to balance in an equitable manner the interests and
expectations of all parties with whom the company dialogs in the territory. It goes so
affirming a conception of Corporate Social Responsibility that is based on the awareness of
the growing interdependence between economic performance and social outcomes, a
conception that contrasts openly with the traditional thesis that wants the company concerned
only for profit and deprived of any social responsibility.

In the light of this new concept, it appears evident how today Corporate Social Responsibility
and the stakeholder relationship management are not only components of a broader strategic
management, but also and above all an essential requirement of the government of a company.
The success of a company is played in fact, today increasingly, on two levels: that of
economic profit and that of social success. Social Responsibility is seen as necessary
integration the economic result.

Specifically, the stakeholder relationship management is "that process of direction with which
a complex organization - started on the road to adaptation of ethics and engaged in the
development of relations pull, interactive and symmetrical - strives to monitor, govern and
improve the dynamics of the relationship systems with its stakeholders" (Cerana [Edited by],
2004, p. 131).

Being an open system, the company must first identify its stakeholders, considering them as
privileged interlocutors. But it is not enough to acknowledge their existence: to better orient its
activity, the company is obliged to listen to their needs, their expectations, their objectives and to
assess their actual importance, in order to draw up a series of decisions and to carry out a series
of concrete actions aimed at resolving them.

This stakeholder relationship management, which identifies three key factors to determine the
relative weight" of the requests made by stakeholders toward enterprise (Chiesi, Martinelli,
Pellegatta, 2000):

The legitimacy of requests;

The power, i.e. the ability of stakeholders to influence the choices of the undertaking;

The urgency of requests.

As can be seen, therefore, the stakeholder relationship management is an integral part of a

policy of Corporate Social Responsibility, which translates first of all in the identification
of stakeholders and, subsequently, in the search for a fair balance of their legitimate
aspirations, in order to avoid potential conflicts that may arise because of the different nature
of the interests at stake.

How can the company ensure a fair balance of these interests? Sacconi proposes a theory "neo-
contrattualista", which is based on the idea of "social contract" fair and efficient manner between
the company and all its stakeholders (Sacconi, 2005).

The social contract is not a real contract, but ideal, in which they are established the
allocations for the rights and duties of all the stakeholders of a company. The adoption of this
Agreement by a company, and the consequent policy of corporate social responsibility that
derives from it can generate numerous benefits for the company itself (Beda, Bodo, 2004):

Firstly, will fight opportunistic behaviors that harm the legitimate expectations of
welfare stakeholders.
In the second place will allow the company that develops and equitable relationships
correct with all its stakeholders, to lay the foundations for establishing trust
relationships that reduce conflicts and facilitate the progress of economic
transactions.
 Finally, the adoption of the social contract will help the management of the undertaking
to

Identify potential adverse social effects of the activities of the company, recognizing the
legitimate interests of stakeholders often forgotten or scarcely considered (such as future
generations).

If the undertaking will prove capable of respecting the commitments made in the social contract,
stakeholders the prefer to its competitors, allowing in this way to "accumulate" that reputation is
essential to its survival and its continuity in time. Therefore, maintaining the reputation
constitutes the main incentive that encourages businesses to comply with the social contract
concluded with its stakeholders (ibid.).

This is the essence of the approach for stakeholders to Corporate Social Responsibility. "The
idea at the basis of this approach is that the stakeholders, similarly to what do
the shareholder who invest their capital, pose of the investments (resources, skills,
knowledge, etc.) in respect of the undertaking, and therefore have a right/claim to obtain an
equitable remuneration of their investment on the part of the firm. The reasoning also applies
in a negative sense, in the case of stakeholders affected by the activities of the company: in
this case we speak of right/claim to a fair compensation on the part of the undertaking'
(Chiesi, Martinelli, Pellegatta, 2000, pp. 21-22).
The importance of the approach for stakeholders to Corporate Social Responsibility is evident
when compared to theaccountability of the representative democracies. The equal of the
members of the democratically elected governments, which must render an account of their
choices and their behavior and of the consequences of their actions to all citizens and not only
to their voters, in the same way the top management of a company must render an account of
its decisions not only to shareholders and financiers, but to all those affected by the positive
and negative effects of business activity (ibid.).

Desiring to conclude, we can say that the affirmation of an approach for stakeholders to
Corporate Social Responsibility is a consequence of the fact that over the years, the stresses
produced by the social partners of the enterprises have won increasingly voice, managing to
also influence the dynamism of the companies themselves. Today it is no longer possible to
effectively manage a business if you are not able to understand and predict the legitimate
expectations of its interlocutors.

The quality of the products and services offered, environmental protection, safety in the
workplace, safeguarding of the ethical and social values: these are the new frontiers to which
companies today must face to succeed.

The success of a company, therefore, today is increasingly linked to the social partners of the
company, and depends on the quality of the relationships with the various groups
of stakeholders with which the undertaking itself interacts or, in any way, enters in contact.

In this perspective, you configure new goals for enterprises that want to stand out and give
evidence of their presence in the market. You begin to think in terms of ethical profit/loss as a
report directly proportional. Then, more businesses demonstrate their ethical value, the greater
their profits.

This latter aspect is an essential feature of the approach for stakeholders to Corporate Social
Responsibility, but it is at the same time a major obstacle. In fact, Corporate Social
Responsibility is based on the theory of stakeholders often meant the social commitment as
simple integration required the economic result. Social Responsibility is then framed in
business strategies and aimed at business. But it would be a mistake to confine itself to
considering the social responsibility of the undertaking only in these terms, i.e. as an
additional tool is indispensable for attaining the profit. On the contrary, the social commitment
must be understood as an instrument of full integration between the company and the
environment in which it operates. In this way, companies will be able to make a leap of
quality, equipping itself with true and proper social policies which guide their processes
of decision making.

"Even if their main responsibility is to generate profits, companies can at the same time
contribute to social and environmental objectives, by integrating the social responsibility as a
strategic investment in the framework of its commercial strategy, their management
instruments and their operations []. Consequently the social responsibility of the company
[] must be regarded as an investment and not as a cost" (Green Paper, 2001,
4-5). It is on the basis of these considerations that you will abandon below the approach
for stakeholders to Corporate Social Responsibility, presenting instead a prospect of broader
scope.

What is Corporate Social Responsibility?

"The enterprise should be responsible only toward their shareholders and, with regard to the
outside, to worry only that his image is more possible positive? May undertake at the social
level only small initiatives of the facade by taste almost exclusively "advertising", or it can be
the active protagonist of projects which they propose to enhance the environment, the people
who work there, the territories in which it operates?" (Capecchi, 2005, p. 9).

These questions are of close news, and introduce the central topic of this paragraph and of the
entire chapter: Corporate Social Responsibility and its characteristics. A growing number of
enterprises, European and international, promotes today strategies of CSR in response to a series
of social, environmental and economic pressures. The goal is to send a signal to the various
stakeholders with which companies have ongoing relationships: workers, employees,
shareholders, investors, consumers, public authorities and NGOS. In this way, companies are
investing in their future.

At the basis of the debate on Corporate Social Responsibility there is the awareness that the
company is not an island, separate from the social environment in which it operates. On the
contrary, it becomes more and more a point of reference for those who work there, for anyone
who invests, to anyone who produces goods and tools, for those who live in the territory
(Sobrero, 2006).
The Green Paper of the European Commission (2001) identifies factors that have pushed
companies to adopt initiatives of CSR:

The new concerns and expectations of citizens, consumers, public authorities and
investors in view of globalization and of the transformations of a great extent that
require businesses a particular attention to the sustainability and development.

The criteria of ethical and socio-environmental issues affecting more and more on
the choices of individuals or institutions, both as consumers and investors.
The pressures of NGOS, from civil mobilization to campaigns to boycott.

The growing concerns raised by the deterioration of the environment caused by

economic activity.
The transparency is ensured by means of communication and by modern technologies
of information in the activities of enterprise.

On the basis of these premises, the paragraph intends to provide below a definition of Corporate
Social Responsibility, also identifying the object of its initiatives.

Definition and object

Up to now there has been talk of Corporate Social Responsibility but without giving a
definition that highlights and clarifies the characteristics most relevant. In recent years the
bibliography on the theme of CSR has grown enormously: there are many publications which
deal with this subject, to witness its centrality in the international debate. Almost all however
agree in recognizing the Green Paper of the European Commission The best and most
appropriate definition of CSR.

According to the indications of the EU, Corporate social responsibility can be regarded as
"voluntary integration social and environmental concerns in their business operations and in
their relations with the parties concerned. Being socially responsible means not only fulfilling
legal expectations, but also going beyond compliance and investing "more" in human capital,
the environment and the relations with stakeholders" (Green Paper, 2001, p. 7).

On the basis of this definition, the main characteristics of the CSR are the following (Beda,
Bodo, 2004):

Go beyond the rules

The adoption of a socially responsible behavior on the part of the firms must not be
dictated by a mere obligation to law, but must connotarsi as a voluntary commitment
that companies assume because they believe that this is in their interest in the long
term.

The close link with the sustainability

Corporate social responsibility and sustainable development are two concepts closely
related: in their activities the undertakings must also take account of economic,
social and environmental consequences of their actions.

The voluntary basis

The adoption of a socially responsible behavior is the result of a free choice of

undertakings

Consequently, adopt a policy of CSR means for a company to go beyond the obligations and the
legislative requirements to which it is required to comply with and invest voluntarily in the
correctness of the relations with stakeholders inside and outside the company, in human capital,
in social progress in respect for the environment to contribute to a better quality of life.

Therefore, the object of Corporate Social Responsibility is the impact caused by the operation
of the company in the social reality and the environment to which it is a part and with which
there is a relationship of mutual interdependence. In the face of the demands of this
environment, it is not enough that the company declares it socially responsible; must
especially prove to be socially responsible by providing specific initiatives, such as for
example:

a. Investing in human capital, i.e. commit resources for the initial and continuing
training of employees and collaborators; recruit disadvantaged on the labor market;
to protect the health and safety in the workplace.
b. To contribute to the protection of the environment by reducing emissions of
pollutants; by limiting as much as possible the environmental impact of its own
activities; developing productive processes environmentally friendly.
c. Treat the relationship with business partners and suppliers, by carefully
choosing their interlocutors, and favoring those who respect human rights and adopt
standards of excellence in the field of respect and protection of the environment.
d. Invest in the relationship with our customers by offering products and services
which meet the needs and expectations; providing them with quality, safety and
reliability.
e. Invest in the community: collaborate with schools, universities; supporting the
projects of the non profit organizations active in their own community of reference
(programs of cause related marketing, see paragraph 3.3).

The adoption of a CSR policy will inevitably lead to the effects for the company. A number of
companies that have obtained good results in the social field or in the field of the protection of
the environment indicate how such activities may result in better performance and allow you to
generate more profit and growth.
More specifically, the economic impact of CSR can be divided into direct effects and indirect
effects (Green Paper, 2001):

Direct effects may for example arise from a better working environment, which
translates into a greater commitment and greater productivity of workers; or they may
derive from efficient management of natural resources.
Indirect effects are the result of the growing attention of consumers and investors,
which will increase the possibilities of the company on the market.
Desiring to conclude, we can say that Corporate Social Responsibility is in the substance that
attitude that knows how to hold together: (a) the business logic of profit; b) the logic of the
environment and its defense; c) the logic of the community in which the enterprise operates,
by harmonizing them in a series of actions that bring new vitality to the company and, in some
cases, the very life of his interlocutors (Sobrero, 2006).

Objectives of the business

Commitments to each other socially responsible company takes many. Usually divided into
three main areas that form the so-called. Pillars of social responsibility. This is an area of
economic, social and environmental. This division is sometimes called Tet triple-bottom-
line. Definition of the basic objectives of the company - maximizing profit - thus
expanding the area from a purely economic targets in the area of social and environmental
s impending and thus more lifelike. We find toti that exempting the company from its
context for the purpose of exploring a model often ignore significant variables that have an
impact on the company great. The transition from the profit targets may occur for example
by sequentially called. Pyramid CSR
Source: CARROLL, A. B: The Pyramid of Corporate Social Responsibility: Toward the
Moral Management of Organizational Stakeholders. 1991 (translation by author)

Philanthropic commitments mean to be a good corporate citizen. Contribute different

sources of community, improve the quality of life. The level of ethical commitment is for
the company to do what is right, fair and honest, do no harm. Undertake legal obligations
company abide by the law, play by the rules. The law is a social confirmation of what is
right and wrong. Economic commitments are the foundation on which everything else
stands. For the company it means to be profitable.

The Pillars of Corporate Social Responsibility

This chapter introduces now closer to the content of individual pillars of social responsibility.
Economic Pillar

Elements of social responsibility, which we can classify under this pillar are:

Code of business conduct of the company

Transparency
Application of the principles of good governance
Rejection of corruption
Relation with shareholders
Behavior towards customers
Behavior towards suppliers
Investor Behavior
Intellectual property protection

Social Pillar

In the social sphere should be a socially responsible company to address these issues:

Corporate Philanthropy
Dialogue with so called stakeholders
Employee and human safety
Human Capital Development
Compliance with labor standards, prohibition of child labor
Work life balance
Equal Employment Opportunities for men and women and other disadvantaged groups
Job Security
Human Rights
Economic Pillar

Below the area of environment includes the following elements:

Table 1: Environmental pillar CSR

CSR topics CSR activities Examples

Environmental Management environmental strategies

Policy The use of standards (ISO 14001, EMAS)

environmental audit

supply Environmental criteria for selecting suppliers

chain

involvement Cooperation on environmental activities

stakeholders Suggestions for improving environmental

practices

Communication environmental training

Information about the environmental policy of

the company

climate Change Measures for reducing the carbon footprint

Energy and water Energy saving Measures and equipment to save energy

(Thorough insulation, energy-efficient

technology, heating control)

Renewables The utilization of solar energy, biomass,

saving water Measures and water-saving device

 for watering and toilets

waste and Sorting and Sorting and recycling of paper, plastics, toners,
recycling

Recycling cartridges and other materials

minimization Print on both sides of the paper

waste Returnable barrels for drinking water

Process optimization

Transport Move Promoting environmentally friendly travel to /

from work

employee Limiting sluebnch roads (video)

Transportation of optimization of logistic

goods

Products and ecological Products and services with Ecolabel

packaging

Ware

packing materials Minimizing packaging materials

Environmentally friendly packaging materials

Shopping environmentally Recycled paper, eco-cleaning

friendly

purchase resources, energy-saving products

local contractors Buying from local suppliers

Alternative Breakdown of Social Responsibility

In addition to the content division of CSR pillars there are other classifications that can help us
better understand what it means for the company, if it decides to implement CSR into their
process.

Internal and external focus on CSR

CSR activities can be divided according to whether they are focused inside or outside the
company. Responsibility within the company may of these activities include, for example,
concern for employee health and safety, environmental production, recycling and thorough
sorting of waste in the workplace. Conversely, when applying CSR outward, the company strives
to be accountable to the external environment such as greater transparency in operations,
corporate philanthropy, open communication with the public, etc.

Reactive and proactive CSR focus

Another view of the CSR may be cutting into reactive and proactive. Historically, older reactive
approach represents an effort to deal with the situation. In the area of CSR, this means that the
company is waiting for it, whether it will appeal to a foundation with a request for support, the
allocation of which will cause an enterprise decides. Conversely, proactive approach means that
the company itself seeks opportunities for expression of its social responsibility. Such behavior
of the company, however, requires a proactive approach and in particular the inclusion of CSR in
the overall business strategy. With this strategy, CSR is an enterprise capable of much better and
more effectively promote its objectives.
Financial and non-financial focus on CSR

Enterprise can to fulfill their commitments in the area of social responsibility take advantage of
both financial and non-financial resources. Among financial activities include:

Donation, organizing collections

Sponsoring
Loans

Non-financial Assistance in fundraising are:

Loan
Possibility to use the property eg- Computers, technology, software, etc.
Graphic Work, copying printing
Discounted price of renting space
Transportation
Corporate Volunteering

If a company decides to show its social responsibility financially, we can say that the way UT is
fairly standardized and then caught on. Donations are also, for example, deductible from the tax
base. Basically, you just select the appropriate area or entity that is dedicated to the topic, and
give him one of the above forms of money.

In contrast, non-financial activities require accurate knowledge of what is needed in this area.
Therefore, there is often collaboration between commercial and non-profit sector. Non-profit
organizations or local associations have its knowledge of the problem and the company in turn
has the means to solve the problem. An example of such a connection may be, for example,
corporate volunteering. It is an activity that requires the interest in employees, both knowledge of
the issue. Corporate Volunteering "lies in the fact that the company will provide non-profit the
organization of work of its employees. They must therefore know which NGO something
needed and welcome. At the same time the company would not deter the staff that will do
unnecessary work and unnecessary. Similarly, for example, when offering the rental of premises
or property should contact company probably more organizations than find one that will
welcome this specific aid. On the other hand, this firm can target a non-financial way exactly
what the nonprofit organization needs. It can offer design services, which is the principal activity
of the company, such as legal services free of charge.

Advantages and disadvantages of introducing CSR

Interest of companies, which is the area of corporate social responsibility is currently

enjoying, but not bubble out of altruistic needs to be good. Companies exist in the real
market, where they face tough competition, fighting for customers of survival. In such an
environment, a company must be sure of the specific benefits of activities in which they
invest their resources. A CSR activity would be just an investment. If these activities are
part of a coherent strategy, one enterprise may in the longer term, significant advantages
accrue. For many Czech companies, however, CSR is still a novelty, as is clear from
research Business Leaders Forum. Likely to contribute to the business environment, as well
as the fact that many of the advantages of introducing CSR are often non-financial form
and may show up after a long time.

Below we review the benefits of socially responsible behavior, as reported in the literature:

Higher profits
Reduce cost increase efficiency
Improving the image and brand reputation
Increase sales and customer loyalty
Increase productivity and quality
Increasing the ability to attract and retain employees
Perhaps indulgence authority in case of misconduct
Competitiveness and market
Greater Transparency and credibility of the company
Higher attractiveness for investors
Strengthening market position through better reputation
Reduce the cost of risk management
Financial savings associated with environmental performance
 Increase in turnover
Strengthen Corporate culture
Improving internal communication
Tax benefits

Many of these benefits are evident, such as direct savings associated with environmentally
friendly practices (eg survey source). Some are questionable and some have even questioned.

For example, the assertion that social responsibility will grow sales through increased customer
interest, some research suggests another refute. Research CSR Europe / MORI 2000 cited by R.
Yeldar states that 70% of European consumers believe that the commitment of the company to
behave responsibly is their criterion when buying a product. One in five consumers would be
willing to pay more for the product socially responsible company. Such behavior would,
however, since consumers requires any of the activities and companies. interested to be so
angaovan that would differentiate between different manufacturers and consequently prefer
products of socially responsible companies and products boycotted irresponsible manufacturers.
As indicated by research agency Millward Brown, which surveyed consumers in the US and the
UK, customers such views in their purchases usually not reflected.39 This difference apparently
follows Already the very forms of research: Respondents match in the questionnaire so as to
represent that it is accurate, but their claims are not reflected in subsequent already own actions.

Probably the most well-known critic of the concept of corporate social responsibility is Milton
Friedman, who claims that the sole responsibility of the company is to increase profits.

Among the disadvantages of the implementation of CSR into business processes include:

Costs of socially responsible behavior is reflected by lower dividends to owners, by lower

wages and higher prices for consumers.
These costs also reduces the operating performance of the company and thereby prevent
the company to produce what with the lowest cost
Focus on the dual objective (profit and liability) can be confusing for both the
organization and the community
Adoption of social responsibility will become even more powerful corporations
 Entrepreneurs are experts in marketing, finance, production; not on solving social
problems
Reports the necessity of serving
Unconvincing quantitatively expressed economic benefits
Costs of introducing a system to invest in the short term, benefits will show an average of
2.5 years

The concept of CSR cannot be accepted without reservation. Some of the disadvantages are quite
serious, others can only testify to the fear of the new. In order for the company liable convenient,
it is necessary that this responsibility the public has been able to recognize and reward such
enterprise increased interest in their products or services. It is necessary to conduct such other
Stakeholders appreciated and reflect it in its dealings with the company. In the company should
therefore be consistent opinion on that is liable to be a certain value.

Approaches to CSR

CSR has historically been a pioneer particularly the United States. The concept later spread to
Europe, where he promoted in other ways, however. Differences in the implementation of CSR
in the US and Europe may be rooted in the fact that while in America there are no problems in
the conceptual apparatus in relation to one pouvanmu language in Europe, the common
terminology still looking. The approach, then Europe from the United States differs in that gives
greater emphasis to the position and state legislation - regulation "from above", while the US
plays a major role in personal and corporate responsibility. The United States has a strong
tradition of supporting non-profit organizations, while businesses in Europe to focus on charity
and support regional development. Companies in Europe are looking for reasons to introduce
CSR, especially in their economic justification. In the US, companies socially responsible
behavior helps prevent scandals. A drawback of CSR in Europe is weak orientation practice
compared to the US. It follows too weak embedding CSR in training managers, which in Europe
is directed rather on campus. While America is more the way of the right to information (Right
to Know), CSR Europe promotes rather through legal norms, on whose observance oversees
state. However, this division is not strict: in Europe can be found tools feature pressure of public
opinion. In the Czech Republic, for example, the Integrated Pollution Register, which was based
law. Generally, there are a voluntary CSR three basic approaches:

Full voluntariness - binding would restrict the creativity and the will to implement CSR.
This approach is supported mainly by companies, employee unions and international
organizations.
Strict regulation - introducing enforceable standards and legal principles. This approach
has a non-profit organization.
A flexible regulation - enactment of minimum standards, while the companies remain
free to fulfill their wishes.

The alternative Interpretation, supported by many empirical research focused on the link
between CSR and financial performance, instead supports the idea that a proper use of the CSR
ports to obtain substantial benefits and involves a value creation for the 'undertaking that for the
company. "L"utility of a"company, its ability to remunerate shareholders, also depends on the
level of satisfaction of their customers and employees, from its commitment in"tackling the
problems of the reality that surrounds them" (Mario Greco, to AIP-SanPaolo IMI Group).
According to this vision enterprises cannot be divorced from social responsibility, considered a
strategic tool able to bring benefits to society and to"environment, and at the same time
strengthen the competitive advantage business.

In the following it is proposed that the 'Analysis of"historical excursus on the theme of strategic
CSR.

The definition of strategic CSR

The scholar Baron has first explained a model of the so-called "profit-maximizing CSR". In
2001 coined the term Strategic CSR, stating that "we can speak of strategic CSR when
l"company joins the search of social benefit in selling their products, as in the case
of cause-related marketing, Starting therefore from a motivation of a social nature and at
the same time ensuring the profit of "business". This concept therefore denotes a profit
maximization strategy that is perceived as socially responsible, but the main motivation is
precisely of a purely economic nature. The author identifies the CSR as part of a strategy of
corporate marketing, thanks to the strong connection between the social benefits and the
increase in the sales of its products.

In reality the concept of strategic CSR already existed previously. Burke and Logsdon in 1996
say that CSR is strategic when allows to obtain substantial benefits to undertaking related to
its business, in particular through the support of core activities, and thus contribute to the
achievement of the objectives outlined in the corporate mission. They are studying the conditions
that may allow undertaking to satisfy simultaneously their own interests and those of
stakeholders. Were identified by scholars five strategic dimensions are crucial for the success of
companies, with the aim of connecting tasks of CSR with the creation of economic value

The centrality is a measure of how the CSR policies are critical to the"Company,
then their relationship with the mission and the business objectives. It provides a
direction to follow and allows to evaluate the feedback to determine the consistency
between the actions of CSR and corporate strategy.

The specificity refers to the ability to capture and internalize the benefits arising
from the program of CSR.

Proactivity reflects the degree of advance planning of the program of CSR with
respect to the emergence of new social trends, economic, technological or political
and in the absence of crisis. This dimension is closely dependent on the level of
turbulence of the environment in which the firm operates.

The voluntarism is closely connected to the proactivity and indicates the possibility
of making decisions in a discretionary manner, without the presence of external
charges.

Finally the visibility denotes the"observability of activities related to the company

business and the ability of the company to obtain recognition by stakeholders, both
internal and external.

In the table are reported the main activities of CSR that can be implemented in reference to
five strategic dimensions previously described.
Figure 2. Activities of CSR referring to the five strategic dimensions (Burke and Logsdon, 1996

In summary, the concept of strategic CSR relates to the possibility of giving the strategic
significance of social responsibility, and exploit it as an opportunity to promote the
implementation of the business strategy, thus creating value at the same time for
the"undertaking and for society. The essence of this concept is well represented by a sentence
of Kofi Annan (2001): "a happy convergence between what your shareholders want and what
is best for millions of people".

The theories on Strategic CSR

Lantos (2001) proposes a distinction of different types of CSR that a"enterprise may
implement. The classification was made according to the nature (CSR "request" vs CSR
"optional") and for the purpose (advantageous for stakeholders vs advantageous
for"undertaking, or both). This analysis has led to the identification of three forms of social
responsibility: ethical CSR CSR, selfless and strategic CSR.

The first is defined as "morally obligatory" and goes beyond that of the fulfilment of
the undertaking to legal obligations and economic, referring rather to the need to
avoid negative consequences. There is nothing of praiseworthy in this level of
 satisfaction of social responsibilities as the CSR ethics consists in a "negative
injunction" that has the purpose to prevent and correct actions undertaken
by"undertaking that hurt others
A most noble meaning seems to be related to the selfless CSR. This form of social
responsibility includes contributions to the welfare of the community at the expense
of the undertaking. In particular these contributions may be of type humanitarian or
philanthropic, then solve problems and social deficiencies which were not caused by
negative actions undertaken by the company to the detriment of the surrounding
environment. However the CSR altruistic, even if it appears noble and virtuous, is not
included in the business goals, essentially economic type, whereby it is a form of
CSR particularly rare.
The strategic CSR or "strategic philanthropy" is constituted by the good actions that
you believe will bring benefits to both business and society. Can be defined as
"philanthropy aligned with economic objectives" (Quester and Thompson 2001), and
creates a situation of type win-win in which both the"undertaking that one or
more groups of stakeholders obtained benefits.

This latest form of CSR can be interpreted as part of the strategy of differentiation of
a"company (Siegel and Vitaliano 2006). Mc Williams and Siegel (2001) state that the
differentiation occurs when consumers attach a value added to certain attributes "socially
responsible" of the product for which they are willing to pay a premium price. According
to this theory, the manager should carry out a cost-benefit analysis to determine the optimal
level of resources to devote to activities of CSR. The differentiation that can be obtained
with initiatives socially responsible is based on the idea that customers believe that
a"company reliable and honest achieves better products. Then the CSR is a form of
advertising to support or build loyalty to the brand business. In this sense, we can consider
the CSR as a form of "strategic investment" (Mc Williams 2006).

Porter and Kramer addressed the theme of how companies can gain a competitive
advantage in"Invest in philanthropic causes or through forms of patronage in their wise
"The competitive advantage of corporate philanthropy"(2002). So that an investment of this
nature has a sense it is important that the company face a reasoning on its competitive
context. This reasoning presupposes not simply sign a check or donate something, but must
include an interest"undertaking in a precise place which has a precise meaning to
the"Company or for its stakeholders. It is not only important where, but also as: this is not a
simple donation, but an investment in which l"firm bearer of knowledge and innovation
and create new contexts and networks in the territory in which it operates. Thought in these
terms the 'investment in culture becomes a strategic tool that leads to greater
competitiveness. The usage of philanthropy to enhance and improve the context makes it
possible to align the social objectives with those cheap, allowing the convergence between
the interests of society and those of business, as shown in the graph.

Figure 3. The convergence of interests between the company and the business (Porter and Kramer, 2002).

To give you an example of how the philanthropy can be used as a means to align the
economic interests with those social, Cisco has invested in an ambitious educational
program called "Cisco Networking Academy". This training program is aimed at non-profit
organizations such as universities, colleges, public bodies and training centers professional,
and has as its objective the"teaching at the use of computer networks. The benefits
arising from the implementation of this program not only concern the company, in this case
the people that are formed, but also the company itself, which increases its attractiveness
on the market and is able to cultivate the talent of its future employees even before that
work for the company.
Galbreath (2006) asserts that the decision not to invest in CSR policies, in addition to not
bring economic benefits to"undertaking may have further negative consequences in terms
of costs. For example, the total cost borne by the American business due to behaviors
socially irresponsible (pollution, accidents to consumers caused by defective products,
accidents to employees caused by not Compliance with the conditions of safety) was
estimated by more than two trillion dollars each year.

The author also proposes a classification of corporate strategies that may be supported
by"implementation of activities of CSR by identifying four "strategic options", presented in
the table belowCompliance with the conditions of safety) was estimated by more than two
trillion dollars each year.

The author also proposes a classification of corporate strategies that may be supported
by"implementation of activities of CSR by identifying four "strategic options", presented in the
table below

Figure 4. The "strategic options" (Galbreath, 2006)

 The shareholder strategy focuses exclusively on maximizing value for shareholders, in
accordance with what stated by Friedman. A"undertaking which satisfies the needs of the
shareholder not only ensures its survival on the market, but contributes to the welfare and
prosperity of society. This vision is the neoclassical concept of "invisible hand" that
allows you to adjust the Economic relations without the need to introduce laws
or regulations. The initiatives of CSR can therefore be implemented, but only if they
contribute to the maximization of the value of the undertaking for the shareholders

The second option proposed strategic is the altruistic strategy.

As a member of society,"enterprise recognizes that it must give something back to the

community in which it operates, and it does so in the form of philanthropy. This positive
contribution comes from the economic surplus of"undertaking and must be consistent
with the moral vision and the corporate culture.

When the objective of the strategy is the"obtaining benefits both for the company and for
the stakeholders and the company you talk instead of reciprocal strategy. The activities of
CSR in this case are related to the core business and require a time horizon along in order
to be able to bring benefits to"undertaking

Finally the citizenship strategy sees the"undertaking as "a citizen in a society which has
responsibility toward all other citizens, namely its stakeholders, both internal and external

In 2006 Porter and Kramer resume the discourse on the convergence of interests between the
company and the company that can be obtained using the"implementation of appropriate
initiatives of CSR. The authors move some criticisms to the approaches of the prevailing CSR,
saying they are too fragmented and away from the business and its strategy. This ends up to
conceal the eyes of companies many opportunities that could seize for benefit to society. The
CSR can be much more than a cost, a constraint or a gesture, Charitable: may be a source of
opportunity, innovation and competitive advantage
Porter and Kramer argue that the growing attention to CSR by enterprises does not reflect a
choice of all voluntary, but rather that it is determined by external factors.

The first is represented by the reactions of the public to issues that companies previously
would never have imagined fall under their responsibility. To cite a few examples, Nike
underwent a boycott by many consumers in the early nineties after some newspapers
denounced abuses inflicted to workers from its suppliers in Indonesia; in 1995 the
decision of Shell to sink into the North Sea the oil platform Brent Spar provoked the
protests of Greenpeace and made headlines around the world; the responsibility
of"obesity and poor diet is attributed to companies that operate in the field of packaged
food and fast food.
The second factor that influences the decision of companies to implement CSR policies is
regulation. National laws oblige companies to document ever more deeply the initiatives
undertaken in the context of social responsibility. For example, the laws in force in the
Uk require any company quoted on the Stock Exchange to publicly announce in their
annual reports the risks ethical, social and environmental issues related to their activities.
Finally has increased the importance attributed to the rating and classifications of firms in
terms of CSR, for which many activities of this type are carried out only to fall into these
rankings, with one purpose of merely advertising.

The most common answer of undertakings in these phenomena has not had a strategic and
operating even, but essentially cosmetic. This attitude is reflected in the publication of
elegant reports of CSR that show the good actions implemented by the company. These
documents provide rarely a coherent framework of the activities undertaken in the context
of the CSR, and much less a strategic framework. The only aim is to demonstrate the
sensitivity of the undertaking in question, often omitting information more important than
those included in the report. The initiatives are also described in terms of money spent or
volunteer hours, without specifying the extent of their impact.

This school of thought has a weak point: puts the accent on the tension between business
and society rather than on their interdependence. Policies of "cosmetic CSR", as they are
defined by the authors, does not have any relationship with the strategy of the undertaking
for which no can help companies to identify and address social issues more relevant or
those on which they can have the greatest impact. The consequence is the loss of a great
opportunity, i.e. the power enjoyed by undertakings of benefit to society.

To advance the CSR is necessary that"company be aware of the relationship between the
business and the company, who need the"one of the other. "A healthy society gives rise to
a growing demand for business, as a greater number of needs is satisfied and that the
aspirations grow" (Porter and Kramer, 2006). The large successful companies need a
healthy society. The"Education,"health care and equal opportunities

Are essential for a productive workforce. The working conditions and the safety of
products not only attract customers, but reduce internal costs due to accidents. The efficient
use of resources increases the productivity of farms. A severe legislation protects the
exploitation not only consumers but also the competitive farms. At the same time a healthy
society has need of successful companies. No social initiative can match the sector of
business when it comes to creating jobs, wealth and"innovation that progressively improve
the standard of living

The mutual dependency between enterprises and society implies that the decisions of
business and social policies should follow both the principle of "value shared". To put the
principle into practice the"undertaking must integrate on the basis of a social perspective
the basic schemes that already uses to analyze the competition and govern their business
strategy. Only by using the same analytical methods will be able to integrate CSR into their
own competitive strategy so as to enrich them both. It is through this type of CSR, called
"integrated CSR", that "undertaking will have the maximum impact social and reap the best
fruits on the floor of the business

A typical example is represented by chain Whole Food Market, whose value proposition is
to sell organic food, natural and healthy to customers which give high value to a"healthy
nutrition and the protection of the environment. The policies of supply are consistent with
the philosophy of the company: are discarded items that contain at least one of the hundred
ingredients considered harmful or harmful to the environment and the bakery products
contain only flour not subjected to particular treatments. But the commitment of the
company supplying toward the practices Natural operational and ecological extends beyond
to"supply. The shops are constructed by using the minimum amount of raw materials
"virgin","company has purchased energy credits to use wind energy instead of the electric
one, biodegradable waste and foods that have expired are recycled and transformed into
compounds, is in act a conversion of the fleet to make them fed only by biofuel, and even
the products used for cleaning of the premises are eco-friendly. Through its philanthropic
activity, then,"company has set up a foundation with the aim of developing solutions that
are more natural and respectful in"breeding of animals. In short, almost all aspects of the
value chain of Whole Food Market incorporate a social dimension, which distinguishes the
company from all its competitors.

After having introduced the debate between cosmetic CSR CSR and integrated into the
business strategy, Porter and Kramer pose the focus on two types of CSR, which are
distinguished by the different strategic approach to social involvement of enterprise, as
shown in Fig
 The " reactive CSR" provides two aspects: practicing good corporate citizenship,
showing in tune with social concerns of stakeholders, and mitigate the present and
future effects of its business activities. The best initiatives on the plane of
the corporate citizenship beyond"the signature to an allowance: they define the
clear and measurable objectives and monitor the results over time

An example is the initiative of the General Electric Company of "adopt" of Secondary

Schools public in difficulty in the vicinity of some of its production facilities in the
United States. The company performs conspicuous donations, and the manager of GE
assume an active role, collaborating with the professors to offer new services to
students. This initiative has had a positive impact in terms of increased rate of
graduates. Projects like this arouse benevolence toward"enterprise and improve its
relations with the local administrations and other institutions, but their effect is
inevitably reduced. As far as the initiative is useful, remains marginal in relation to the
business of the company and its direct effect on recruitment and retention is limited

The second aspect of reactive CSR, or mitigate the damage arising from activities that
fall in the value chain d"undertaking, essentially constitutes an operational challenge.
The company should identify best practices through which face each effect of the value
chain, focusing on"evolution that such practices are undergoing. The"attenuation of
social problems created by business activities will lead to the achievement of a
competitive advantage, although probably temporary in nature.

It is in the context of the " strategic CSR", instead, that reside the real opportunity
to create a shared value. Companies can experience a series of innovations of the
chain of Value to the benefit of both the company and its own competitiveness and
may invest in the Community to which they belong with the objective to strengthen
its competitive environment and at the same time increase their productivity. Social
problems, in this sense, they must not be seen as a cost or a constraint but as a
source of opportunities and innovation

When the activities that fall in the value chain and investment directed to competitive
context are fully integrated it becomes difficult to distinguish the CSR from the daily
activities of the undertaking. Nestle, for example, works directly with the small farmers
who live in developing countries to ensure that"supply of elementary goods consumer
instrumental to his business. To have an immediate and constant access to these goods,
necessary to preserve a global business profitable,"company has made significant
investments in local infrastructure and has spread his knowledge and technologies, causing
enormous social benefits through economic development, the improvement of the health
care and the greater quality of training. The business strategy cannot be divorced from its
social impact

The literary path concerning the strategic CSR is characterized at this point by a significant
turning point, which sees a shift of focus from that simply was defined as "social
responsibility d"Company" to the concept of "social integration". "Ngos, governments and
businesses must stop thinking in terms of "social responsibility d"Company" and begin to
think in terms of "social integration" of "business" (Porter and Kramer, 2006).

The development of socially responsible activities with the aim to bring benefits to
both"undertaking that the company should be Accompanied by a real "internalisation of the
strategy of CSR in the business. In this regard Sharp and Zaidman (2009) speak
of "strategization", i.e. the process through which the strategy of CSR is integrated in the
behavior of the organization and its culture.

McManus summarizes in his essay of 2008 speech introduced the previous year by Porter
and Kramer, affirming the need to obtain a "mash-up" between the business strategy and
the CSR. In folk music, a mash-up is a digital file that combines several sound sources.
Two songs are played at the same time, and can be associated in many different ways.
Often there are elements of dissonance, and even cacophony, but the sum of the parts
generally surpasses the original. In the same way the CSR is progressively intersecting,
integrating converging with the business strategy, and their correct combination leads to an
improvement of greater magnitude than the sum of the benefits derived from individual
parts.

According Molteni (2007) you can talk of "creativity socio-competitive", because the CSR
is characterized by the search for innovative solutions designed to meet increasingly
expectations of one or more groups of stakeholders, tending to make these solutions a
factor in the development of business advantage. In this case the social responsibility
loses any negative connotation in the sense of a ban or a constraint to"operate, and
becomes synonymous with a creativity at the service of the satisfaction of the expectations
of all stakeholders. Solutions implemented in this sense are defined by"author "synthesis
socio-competitive" (see figure). "With this term is used to describe the business
innovations, which may relate to the central level of the undertaking rather than a business,
a specific function or a single process that allow you to respond to the expectations of a Or
more classes of interlocutors beyond what is required by law or by the practices of the
time, contributing at the same time to support business performance".

Figure 6. The "Summary of socio - Competitive" (Molteni, 2007).

Whereas the individual elements of this definition is firstly placed the emphasis
on"innovativeness of the answer given to the expectations of the interlocutors
of"undertaking, i.e. as an expression typical of entrepreneurial creativity. This response is
judged socially important not in the abstract, but with reference to a specific scope of time
and space, since it constitutes a practice that distinguishes itself for the greater sensitivity to
the expectations of stakeholders with respect to approaches which characterise that context.
The synthesis socio-competitive involves"undertaking multi business so pervasive and it is
vital that the form of creativity social background does not sacrifice the objective of
creating value for our shareholders, but is it functional.

A first example of application of the synthesis socio-competitive is given by the

new way of conceiving corporate philanthropy. In particular it has made its way
into the corporate the conviction that even the"philanthropic commitment may
constitute an investment to improve the performance of the long term of
"undertaking (we talk about strategic philantrophy). The single company is not
responsible for all the problems of society but should identify those with respect to
which it is better equipped to intervene and from which it could obtain a more
ample advantage. The case of the Foundation Luxottica is emblematic in this sense.
"Give the Gift of Sight" proposes to help those who cannot afford a"adequate
assistance ophthalmology, offering free eye exams and distributing eyeglasses to
people in conditions of hardship in" North American area. The Foundation also
collects used eyeglasses that, after a careful analysis, are refurbished and donated to
people in need. This experience develops through the work of the group, the ability
to solve problems with creative solutions, highlighting the qualities decision-
making people who engage in these intentions.

A second example is given by the capacity to develop within the framework of the
business portfolio one or more business connotations by an identity distinctly social
or environmental policies.

This implementation is not only the "Flag" of"social commitment of"company,

improving the business reputation, but can also make a positive contribution to
economic variables, representing business able to achieve success in competitive
and profitability. Snaidero, for example, in 2002 he started a project aiming to
launch on the market a kitchen intended for persons with disabilities, Which
number is in strong growth. Beside"philanthropic intent, consistent with the
corporate culture, the project identifies a twofold objective of a commercial nature:
 develop a new business area potentially profitable and obtain a return in terms of
reputation with customers and institutions

A last case of implementing synthesis socio-competitive concerns a specific

business. COOP, leader of the large-scale distribution in Italy, has decided to tackle
in an innovative way one of the main problems concerning human resources, i.e.
the"working hours. It has been launched a project that allows staff to manage
themselves working hours, in order to harmonize the demands of working life with
those of the private sphere. The two positive implications obtained with this project
were on the one hand the reduction of organizational difficulties and typical
management of"company from"other greater employee satisfaction, that resulted in
a lower absenteeism and in an improvement in the level of service to customers.

In the concept of synthesis socio-competitive is transparent l"invitation to consider the

CSR is no longer as the ground of division between business and the scope of the company
and the social, but to find it as the point d"balanced encounter for a new formula of added
value for the "undertaking.

The strong interconnection between the"undertaking and the size of the social work is
represented in a clear and concise manner by a recent quote of Kofi Annan: "To be really
responsible must pass from "what is good for the company is good for society" to "what is
Good For The Company IS Good For The"Company"".