The strategic corporate social responsibility (CSR) quandary: an instructional case. Issue 3 (11th August 2020)

• Record Type: Journal Article
• Authors: Bhatia, Sandhya; Gupta, Gaurav; Tripathy, Arindam
• Is Part Of: Emerald emerging markets case studies. Volume 10:Issue 3(2020)
• Page Start: 1
• Page End: 30
• Publication Date: 2020-08-11
• Subjects: Corporate social responsibility -- Stakeholder theory -- Corporate strategy -- Financial statement analysis
• DOI: 10.1108/EEMCS-12-2019-0344
• Languages: English
• ISSNs: 2045-0621

Abstract

Abstract : Learning outcomes: Recognize the interest groups of the business as stakeholders and shareholders. Understand the role of strategic corporate social responsibility (CSR) in attaining competitive advantage for the firm. Apply the techniques of financial statement analysis such as common-sized financial statements and ratio analysis. Analyze the overall financial position of the company such as its liquidity, solvency and profitability position. Evaluate the appropriateness of various CSR activities given the size of the company, its business model and financial position. Create a suitable CSR policy draft incorporating the critical elements of a CSR policy that enables the firm to operationalize it and fulfill the disclosure norms. Case overview/synopsis: The management of Ball Industry Limited (BIL) had overlooked the mandatory requirement of CSR policy formulation. The company had not yet spent anything on CSR since the regulation had come into force. The company's financial position was not healthy. Still, it fell under the regulatory clause as a borderline case and must spend 2% of its average three years' profit on CSR activities. The company had previously ignored the requirement of formally drafting a CSR policy and deciding about the actions it might want to carry out. Now that the regulator had started sending show-cause notices to several companies who had not yet begun CSR, BIL was under immense time pressure to draft its CSR policy and initiate the relevant CSR activities. Emily, the chief operating officer of BIL, was assigned the task of preparing the blueprint of the CSR policy of the company and made it available for discussion in the upcoming meeting. The task at hand was to formulate a sound CSR policy under the constrained financial state considering its strategic planning, including the SWOT analysis, competitive environment and the overall general market and economic conditions. She submitted that rather than a vanilla CSR activity, strategic CSR would support the firm to differentiate itself from competitors. She was struggling to formulate a CSR strategy that could achieve both economic and social goals. Complexity academic level: The case will be most suitable for use in undergraduate and graduate courses. Supplementary materials: Teaching notes are available for educators only. Subject code: CSS 1: Accounting and finance.