Balancing profitability and CSR.

| October 19, 2015

1.Read DRS, “Anglo American PLC in South Africa: What Do You Do When Costs Reach Epidemic Proportions,” pp. 425- 428.
2. View the Michael Porter and World Economic Forum videos.
3. Select two multinational corporations where the MNCs aredifferentindustries (e.g., manufacturing/Ford and pharmaceutical/Merck). The choice of MNCs is yours. (DEAR WRITER: I CHOSE FINANCE: BANK OF AMERICA AND RETAIL: SAKS. BUT YOU CAN CHOOSE 2 DIFFERENT ONES IF YOU LIKE AS LONG AS YOU TELL ME SO THAT I CAN ENSURE MY CLASSMATES DON’T HAVE THE SAME CHOICE.
4. Go to the two MNCs’ websites and locate their most recent CSR reports, also often called corporate citizenship, sustainability, or corporate responsibility reports.
To locate the reports: Go to the Global Reporting Initiative’s superb database http://database.globalreporting.org/ (22,670 reports from 7,114 organizations), enter organizations name in search box. Or http://www.csrwire.com/reports and http://www.wbcsd.org/publications-and-tools.aspx and scroll down to “latest case studies.” There is http://globaledge.msu.edu/industries/ and you can always use “Google” to locate company reports.
5. Compare and contrast the information provided by the two companies’ reports.
A. Are there differences between the two reports in terms of the range of issues dealt with and the depth of coverage on specific issues, risk areas (labor, environment, human rights, supplier relationships, bribery, corruption, health, animal testing, etc.)?
B. Do you think these differences can be explained by industry differences or the national origins of the MNCs or by the location of their foreign operations?
C. The Anglo American PLC and other examples in DRS and videos of corporate responsibility initiatives suggest that emerging markets present both opportunities (generate profits, create societal value) and risks (pose challenging operating environments) for MNCs.In the two reports you chose are there examples of the companies going beyond their legal responsibilities to creating shared value, of how they are achieving the perception of being socially responsible by the local communities in the foreign countries where they operate?Be sure to apply Porter’s framework in your analysis.

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Arbitrage [2012] and Die Welle (The Wave) [2008]
Human Resources Strategic Plan.

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