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Strategy of Implementing CSR and CSI

Here is the strategy of implementing CSR and CSI introduce by the Maria Federica Izzo. This
virtuous cycle is made up of four steps decision, design, action and result. This design is
define an accessible value creation path that a responsible corporation can follow, assuming
that it integrates a social agenda into its competitive strategy and assuming that the market
appreciates the real and effective social efforts of corporations.
We know that every single move of the corporation must have a well planning strategy to run
in order to maximise the beneficial. When a corporation implements corporate social
responsibility (CSR) and corporate social investment (CSI) also must entail an analysis of the
benefits and costs associated with responsible behaviours. What the corporate done derive
from the CSR and CSI must have the potential value to contribute to the society, at the same
time achieve a competitive advantage to the corporation. A corporation that carry out CSR
and CSI with no a well planning there are a risk drive up the costs to the detriment of the
corporations revenue and this adverse to the shareholders.
Clearly know that the main point while a corporation want to implement CSR and CSI, the
basic idea is that the advantages and benefits of this two investments must exceed any related
costs and thus this investments can create value for stakeholders in general.
Started up with the model introduced by Maria Federica Izzo, corporations first have to
determine one or more specific areas of interest that want to involve in which they want to
invest. The areas can determine by a few element such as depending on the corporations
business, alignment to the business objectives, main stakeholders, external environment and
internal environment. The corporations ability and capabilities also have to take
After the decision have made, can enter to another step that is design. According to this step,
corporation need carefully plan their strategy in relation to the areas that choose previously.
Corporation may assign this task to a special department that fully responsible to the
activities of CSR and CSI. They hire professional team in order to manage it more efficiently
and effectively. Husted and Allen (2011), successful companies must treat social action or
social topics in the same way as any other potential source of competitive advantage, with the
aim of creating economic and social value.

Assuming that the first two steps are well designed and developed align with the components
of the corporation and the conditions of the environment, this model considers that the
advantages generated will more than the related costs. Beside implement the two investments,
corporation also have to continue internal and external reviews of the programs and funding
In a result, corporation after that will get a generous positive effect in the value creation
process. This is because from the CSR along with CSI which corporation decides to carry out
obtain approbate and appreciated by the environment as well as the stakeholders.
Along this pathway, what cannot be ignored is there might be many mistakes can occur or
possible biases exist. For example, firms can propose the CSR or CSI strategy incorrectly and
mismatch with the expectation of the market. In addition, stakeholders perceptions toward
the success of corporations social responsibility initiatives are different and this might create
a deep divide between what the corporation does and what stakeholder think the corporation
does. Because of such type of barrier to the value creation process or possible bias appear, so
that the social strategy formulated by the corporation must be tailored and specifically toward
the corporation and take consideration to the internal as well as external environment. The
key point of any CSR and CSI activities success are not only depend on its contents and
intrinsic correctness as well as the manner in communicates with the stakeholders and how it
is understood and interpreted by stakeholders.
There are four areas of CSR and CSI can participate by corporation are classified as follows:
environment, labour practices/human resources, social performance and good administration.
From the area of environment, what policies implemented by the corporation is to reduce the
negative environmental impact from its business activities. Nowadays the issues of the
environmental concern by everyone in the world and it closely affected our daily life. What
can the corporation contribute from the CSR and CSI activities such as redesign production
processes to be less polluted, increase the efficiency of production processes in order to
reducing input and waste disposal costs, and develop product that environmentally
responsible. There are many ways that can corporation do for the environment based on the
objective and businesses of the company. Here is one of the real example done by Coop
Adriatica company. This company is the most important group of Italian retailers and a big
consumer association. Coop Adriatica make them as a green and environmentally friendly
supermarket and has been built with reusable and recyclable material. Furthermore, all the

installation has been designed and built bearing in mind health and safety principles not just
for the staff but also for the clients. Their product line Viviverde come entirely from organic
farming, they are natural and healthy products and come from a production system that
respects the environment and animals.
Another area which can corporation participate in was labour practices/human resources area.
This CSR and CSI policies is for internal and processes oriented to the employees for the
development of their work in a safe and healthy environment, equal opportunities,
encouraging work-life balance, training, participation and dialogue, with the aim of
permanent development. This is the way that corporation taking good care of its employees
and for the sustainability of the corporation because they are the one who helping its
corporation run the business and achieving its goals. One of the example company participate
for this area is Dewsoft company. Its a company that unites computing experts, electrical
engineering experts and mechanical engineering experts. Their CSR and CSI activities are
shown by creating many new jobs, innovative solutions and environmental protection.
Social performance also one of the area that corporation can contribute by the CSR and CSI
activities. This social performance area is more focus on the participation on social, cultural
and sporting projects of the environment. The corporation get the support from the society
along they run their business, after that they go through the CSR and CSI program contributes
back to the society to shows that they are really appreciate their stakeholders. This also can
help for the sustainability of the corporation. A very good example is Nestle Berhad, Nestle is
the worlds leading nutrition, health and wellness company. Creating value to the society is
one of their objectives. Nestle (Malaysia) Berhad has been organised some program such as
Program Cara Hidup Sihat, Kids Athletics Course, and Milo Go Further Camp. This
entire programme is to promote healthy lifestyles and development of awareness among the
local community.
The area after that is good administration. Good administration is a set of rules and practices
oriented to the appropriate decision-making inside the company, so as to take into account the
interests of the whole organization and society. We can look one of the examples from Alpha
Koukoutaris Company, it is a food market leader in the Greek and its exports grow quickly.
This company objective is to establish control measures to guarantee production process
quality. What they have done is frequently controlling their quality in production processes

and service provision on nay standard. They compliance to the highest international quality
and standards ISO in order to give their customer a safety ensure.
No matter what the area corporation choose to implement the CSR and CSI programme, the
most importance is the society and the environment can get the benefits. However,
corporation who want to carry the CSR and CSI programme should have a rational and well
structure action plan in order to benefits the society and at the same time ensure the
sustainability of its corporation.

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Petra Christmann, (2000), Effects of "best practices" of
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Sharon Yam, (2013),"The practice of corporate social
responsibility by Malaysian developers", Property Management,
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Maria Federica Izzo , (2014),"Bringing theory to practice: how to
extract value from corporate social responsibility", Journal of
Global Responsibility, Vol. 5 Iss 1 pp. 22 - 44