Strategy and Society: Link between Competitive Advantage and CSR • Harvard Business Review

FSG Social Impact Advisors and Consultants • Discovering Better Ways to Solve Social Problems “The fact is, the prevailing approaches to CSR are so fragmented and so disconnected from business and strategy as to obscure many of the greatest opportunities for companies to benefit society. If, instead, corporations were to analyze their prospects for social responsibility using the same frameworks that guide their core business choices, they would discover that CSR can be much more than a cost, a constraint, or a charitable deed. It can be a source of opportunity, innovation, and competitive advantage.

In this article, we propose a new way to look at the relationship between business and society that does not treat corporate success and social welfare as a zero-sum game. We introduce a framework companies can use to identify all of the effects, both positive and negative, they have on society; determine which ones to address; and suggest effective ways to do so. When looked at strategically, corporate social responsibility can become a source of tremendous social progress, as the business applies its considerable resources, expertise, and insights to activities that benefit society.” “Strategy and Society: The Link between Competitive Advantage and Corporate Social Responsibility, by Michael E. Porter and Mark R. Kramer, Harvard Business Review, Dec 2006.

FSG • Social Impact Advisors www.fsg.org

Guided by FSG’s co-founder and Senior Advisor Michael E. Porter of Harvard Business School, FSG Social Impact Advisors has worked with dozens of global corporations, such as GE, Microsoft, Nestle, Pfizer, Shell, and Swiss Re, to build competitive advantage and social value through innovative practices in corporate social responsibility and philanthropy.

FSG takes an individualized, company-specific approach to develop a proactive corporate social agenda for clients. Experienced strategy consultants will map your company’s value chain to understand how your business activities impact society, while factoring in the surrounding social factors that influence productivity and competitive strategy.

FSG offers the following services for corporations:

• Shared Value Strategy: integrating social and competitive strategy

• Philanthropic Initiative Design

• Identifying Business Opportunities that Meet Social Needs

• Evaluation of Corporate and Societal Impact