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1. Strategic Management for
Sustainability
Presentation
on
PRESENTED TO: -
Prof. S. K. Srivastava
(faculty of IBM)
PRESENTED BY: -
Jai Prakash
Priti Gautam
Seema Bharti
MBA (FT) 4th
SEM.
Batch: (2015-17)
CSJM UNIVERSITY KANPURCSJM UNIVERSITY KANPUR

2. Content
 CORPORATE SUSTAINABILITY FOR STRATEGIC MANAGEMENT
 STAKEHOLDERS MANAGEMENT & STRATEGIC MANAGEMENT
 CORPORATE GOVERNANCE & STRATEGIC MANAGEMENT
 CORPORATE SOCIAL RESPONSIBILITY & STRATEGIC MANAGEMENT

3. CORPORATE SUSTAINABILITY
FOR STRATEGIC MANAGEMENT

4. Corporate Sustainability
 Corporate sustainability is a business approach that creates
long-term consumer and employee value by creating a
"green" strategy aimed toward the natural environment and
taking into consideration every dimension of how a business
operates in the social, cultural, and economic environment. It
also formulates strategies to build a company that fosters
longevity through transparency and proper employee
development.
 Corporate sustainability is an evolution on more traditional
phrases describing ethical corporate practice.

5. Triple Bottom Line (TBL or 3BL)
 An expanded spectrum of values
and criteria for measuring
organizational and societal success -
economic, environmental, social.
 In the private sector, a commitment
to CSR implies a commitment to
some form of TBL reporting.
 The Triple Bottom Line is made up
of "Social, Economic and
Environmental"

6. Triple Bottom Line Accounting
 Expanding the traditional reporting
framework.
 Take into account environmental
and social performance in addition
to financial performance.
 Company's responsibility to
'stakeholders' rather than
shareholders.

7. Sustainable Strategic Management
“Sustainable strategic management” refers
to strategic management policies and
processes that seek competitive advantages
consistent with a core value of
environmental sustainability.

8. STAKEHOLDERS MANAGEMENT &
STRATEGIC MANAGEMENT

9. Stakeholder Management
 Stakeholder theory is a “A conceptual framework of
business ethics and organizational management which
addresses moral and ethical values in the management of a
business or other organization”.
 Corporations are not simply managed in the interests of their
shareholders alone, but that there are a whole range of
stakeholders.
 It identifies and models the groups, which are stakeholders
of a corporation and both describes and recommends various
methods to satisfy them.
 Ethical organization recognizes its responsibilities towards
all stakeholders.

10. Type of Stakeholder
 Shareholder
 Employees
 Management
 Customers
 Suppliers
 Creditors
 Competitors
 Society
 Government

11. INTERNAL STAKEHOLDERS

12. Responsibility towards Owners/Shareholders
A shareholder is any person, company or other institution that
owners at least one share of a company's stock.
Because shareholders are a company's owners, they reap the
benefits of the company's successes in the form of increased
stock valuation.
Proper use of capital
To manage business effectively
To provide accurate and timely
information
Ensure growth and appreciation
of owner’s capital
Provide regular and fair return
on owners capital

13. Responsibility towards Employees
The reason is that employees contribute towards the growth of
an organization and this in turn results in the improvement of
society. The employment contract makes the
employer responsible towards their employees. It is
the responsibility of every organization to stand up to these
expectations of their employees.
Fair compensation for service provided
Timely and regular payments
Provision of proper working and welfare
Conditions Job security
Provision of security benefits and better
living conditions
Training and development opportunities

14. Responsibility towards Management
Employees' responsibilities your role as an employee in this
performance management process to work towards achieving
your individual goals, which help the organization reach its
objectives. You have your manager should have set these goals
collaboration as part of your performance
management activities.
Management decisions have impact
Shareholder expects higher returns

15. EXTERNAL STAKEHOLDERS

16. Responsibility towards Customers
The concept of corporate social responsibility or CSR is based
on three dimensions which serve as its three pillars. These are
the economic, social, and environmental responsibility. For a
company to successfully practice CSR, all the three pillars have
to be balanced and should be based on obligation and
accountability.
Ensuring consistent quality
Providing ease-to-use products
Increasing customer satisfaction
Responding to product-related
issues

17. Responsibility towards Suppliers
Casio aims to fulfill its social responsibilities, including
compliance with relevant laws and social norms, and protection
of the environment, through fair and equitable transactions
throughout the supply chain by strength partnership
with suppliers.
Giving regular orders
Dealing with suppliers on fair terms
and conditions
Availing reasonable terms of credit
Timely payment of dues
Helping suppliers in improving or
upgrading the quality

18. Responsibility towards Investors/Creditors
 To provide fair returns on capital invested
 To supply complete and accurate
information
 To ensure that the value of investment
doesn’t fall in the long term
 To raise public image of the company
 To undertake R&D activities for
diversification
 To build up financial stability and ensure
safety of investment
 To ensure timely payment of interests and
principal
 To not participate in unethical practices and
bring to the company

19. Responsibility towards Competitors
 Not to claim exceptionally high commissions to agents and
distributors
 Not to offer too high discounts to the consumers
 Not to defame competitors directly or indirectly

20. Responsibility towards Society
Social responsibility is an ethical framework and suggests that
an entry, it an organization or individual, has an obligation to
act for the benefit of society at large. Social responsibility is a
duty every individual has to perform so as to maintain a
balance between the economy and the ecosystem.
Business morality
Development of backward area
Efficient use of resources
Financial assistance
Protection of environment

21. Responsibility towards Government
Businesses operate in communities that directly or indirectly
affect their transactions. Companies interact with the various
sectors in the larger community and part of this is the
government. So, in the perspective of corporate social
responsibility or CSR, many people feel that the government
sector must also play a role in the business activities.
Payment of taxes
Obeying rules and regulations
Giving suggestions
Financial help during emergency
Earn foreign exchange

22. Stakeholder Analysis
Stakeholder analysis in conflict resolution, project management,
and business administration, is the process of identifying the
individuals or groups that are likely to affect or be affected by a
proposed action, them according to their impact on the action and
the impact the action will have on them.

23. CORPORATE GOVERNANCE &
STRATEGIC MANAGEMENT

24. What is Corporate Governance?
 Corporate governance is the system of rules, practices and processes by
which a company is directed and controlled. Corporate governance
essentially involves balancing the interests of a company's
many stakeholders, such as shareholders, management, customers,
suppliers, financiers, government and the community.
 Since corporate governance also provides the framework for attaining a
company's objectives, it encompasses practically every sphere of
management, from action plans and internal controls to performance
measurement and corporate disclosure.
 Corporate Governance has a broad scope. It includes both social and
institutional aspects. Corporate Governance encourages a trustworthy,
moral, as well as ethical environment.

25. Principles of Corporate Governance
 Sustainable development of all stake holders: To ensure
growth of all individuals associated with or effected by the
enterprise on sustainable basis.
 Effective management and distribution of wealth: To
ensue that enterprise creates maximum wealth and
judiciously uses the wealth so created for providing
maximum benefits to all stake holders and enhancing its
wealth creation capabilities to maintain sustainability.
 Discharge of social responsibility: To ensure that
enterprise is acceptable to the society in which it is
functioning.

26.  Application of best management practices: To ensure
excellence in functioning of enterprise and optimum creation
of wealth on sustainable basis.
 Compliance of law in letter & spirit: To ensure value
enhancement for all stakeholders guaranteed by the law for
maintaining socio-economic balance.
 Adherence to ethical standards: To ensure integrity,
transparency, independence and accountability in dealings
with all stakeholders.
CONTD ...

27. Pillars of Corporate Governance
The three pillars of corporate governance are: transparency,
accountability, and security. All three are critical in
successfully running a company and forming solid professional
relationships among its stakeholders which include board
directors, managers, employees, and most importantly,
shareholders.

28.  Transparency: transparency means having nothing to hide.
For a company, this means it allows its processes and
transactions observable to outsiders. It also makes necessary
disclosures, informs everyone affected about its decisions, and
complies with legal requirements. Transparency is a critical
component of corporate governance because it ensures that all
of a company’s actions can be checked at any given time by an
outside observer.
 Accountability: It takes more than transparency to build
integrity as a company. It also takes accountability, which can
also mean answerability or liability. Shareholders are deeply
interested in who will take the blame when something goes
wrong in one of a company’s many processes. Accountability
can have a negative connotation because many people
associate it with blame.
CONTD ...

29.  Security: A company is expected to make their processes
transparent and their people accountable while keeping their
enterprise data secure from unauthorized access. There is
simply no compromise for this. Companies that experience
security breaches involving the exposure of their clients’
personal information quickly lose their credibility.
Combining All Three: Taken together, transparency,
accountability, and security define a company’s integrity.
Achieving all three isn’t an easy thing to do, but fortunately,
companies now have an partner in board portal software that
also doubles as corporate governance software. A board
portal doesn’t just digitize the whole board meeting process;
it also makes the process more transparent by keeping clear
and complete documentation at all times.
CONTD ...

30. Benefits of Corporate Governance
 Good corporate governance ensures corporate success and
economic growth.
 Strong corporate governance maintains investors’ confidence,
as a result of which, company can raise capital efficiently and
effectively.
 It lowers the capital cost.
 There is a positive impact on the share price.
 It provides proper inducement to the owners as well as
managers to achieve objectives that are in interests of the
shareholders and the organization.
 Good corporate governance also minimizes wastages,
corruption, risks and mismanagement.

31. Need for Corporate Governance
 Corporate governance is an important part of strategic
management that can improve firm performance.
 Good governance practices entail active participation of
shareholders in the direct and indirect management of
corporation through the Board of Directors and an
arrangement of productive checks and balances among
shareholders, board of directors and management of
corporations.
 Corporate governance is of interest to us as it determines the
strategy of the organization and how it is to be implemented.
It is also important to us because the Corporate Governance,
framework determines who the organization is there to serve
and how the priorities and purposes of the organization are
determined.

32. Corporate Governance & Strategic
Management
 Corporate governance, in strategic management, refers to the
set of internal rules and policies that determine how a
company is directed. Corporate governance decides, for
example, which strategic decisions can be decided by
managers and which decisions must be decided by the board
of directors or shareholders.
 Corporate Governance is highly essential from the point of
view of the shareholders, customers, employees and
company and society at large for the survival and sustainable
growth of the company. Strategy integrates internal
environment including corporate governance and external
environment.

33.  The corporate governance meets the interests all the
stakeholders including the long-run interest of the company
itself in a more balanced way, by regulating and controlling
the misleading, immoral and unethical ideas and acts of
CEO, Board of Directors and other strategists. Thus strategic
management should be under the preview, control of and the
provisions of corporate governance provisions and practices
of a company.
 Corporate Governance deals with determining ways to take
effective strategic decisions. It gives ultimate authority and
complete responsibility to the Board of Directors. In today’s
market- oriented economy, the need for corporate
governance arises. Also, efficiency as well as globalization
are significant factors urging corporate governance.
Corporate Governance is essential to develop added value to
the stakeholders.
CONTD ...

34. Responsibility of Board of Directors
 The Board of Directors is responsible for supervising the
successful management of the organization’s business. It has
the authority and obligation to protect and enhance the assets
of the corporation in the interests of all shareholders and the
company’s public mission.
 Oversight and approval on an ongoing basis of the
corporation’s corporate and business strategies and
monitoring their implementation.
 Oversee the establishment and implementation of effective
corporate governance processes

35.  Establish standards for management and monitor performance.
 Approve procedures for strategy implementation, for
identifying and managing risks and for insuring the integrity of
internal control and management information systems.
 The Quality of Board is a deciding factor for good corporate
governance. The compositing and number are the determinants
of quality. Even in a small concern the efficiency of the Board
of Directors is a crucial factor for the survival in a competitive
environment. Board of Directors in different companies
contributes differently to the corporate governance due to
variations in goals and duties, structure, composition, size of the
board, board leadership and board committees.
CONTD ...

36. Corporate Governance Issues
 Corporate governance has wide ramifications and extends
beyond good corporate performance and financial propriety.
The complexity of corporate governance arises from two
main reasons. First in most countries there is no separation
between ownership and management control of organization.
The second is the increasing tendency to make organization
more visibly accountable not only to owners(shareholders)
but also to other stakeholders groups.
 In the case of the first issue, it is imperative to distinguish
the nature of the two basic components of governance in
terms-
• Policy making and overnight responsibilities of the board of
directors.
• the executive and implementation responsibilities of
corporate management.

37. CORPORATE SOCIAL
RESPONSIBILITY & STRATEGIC
MANAGEMENT

38. Corporate Social Responsibility and
Strategic Management
Corporate social responsibility is a
form of management that considers
ethical issues in all aspects of the
business. Strategic decisions of a
company have both social and
economic consequences. Social
responsibility of a company is a main
element of the strategy formulation
process.

39. Corporate Social Responsibility &
Sustainability
Corporate responsibility & sustainability (CR&S) is about
enabling companies to incorporate creation of social and
environmental, as well as economic, value into core strategy
and operations. This improves management of business risks
and opportunities whilst enhancing long-term social and
environmental sustainability.

40. Corporate Social Responsibility
Corporate social responsibility, often
abbreviated "CSR," is a corporation's initiatives
to assess and take responsibility for the
company's effects on environmental
and social wellbeing. The term generally
applies to efforts that go beyond what may be
required by regulators or environmental
protection groups.

41. Corporate Social Responsibility in
Indian context
 Corporate social responsibility (CSR) is increasingly being
adopted on a global scale. However, it is evident that the
utilization and implementation of CSR varies in differing
contextual settings. The purpose of this chapter is to explore
the concept of CSR in the India.
 The evolution of corporate social responsibility in
India refers to changes over time in India of the cultural
norms of corporations' engagement of corporate social
responsibility (CSR), with CSR referring to way that
businesses are managed to bring about an overall positive
impact on the communities, cultures, societies and
environments in which they operate.

42. Social Responsibility
Social responsibility is an ethical framework
and suggests that an entity, be it an
organization or individual, has an obligation to
act for the benefit of society at large. Social
responsibility is a duty every individual has to
perform so as to maintain a balance between
the economy and the ecosystems.

43. Types of Social Responsibility
Discretionary
Ethical
Economic Legal
}Social Responsibility

44.  Economic: Economic responsibilities of a business
organization’s management are to produce goods and
services of value to society so that the firm may repay its
creditors and shareholders.
 Legal: Legal responsibilities are defined by governments in
laws that management is expected to obey. For example,
U.S. business firms are required to hire and promote people
based on their credentials rather than to discriminate on non-
job related characteristics such as race, gender, or religion.
CONTD ...

45.  Ethical: Ethical responsibilities of an organization’s
management are to follow the generally held beliefs about
behavior in a society. For example, society generally expects
firms to work with the employees and the community in
planning for layoffs, even though no law may require this. The
affected people can get very upset if an organization’s
management fails to act according to generally prevailing
ethical value.
 Discretionary: Discretionary responsibilities are the purely
voluntary obligations a corporation assumes. Examples are
philanthropic contributions, training the hard-core
unemployed, and providing day-care centers.
CONTD ...

46. Thank you