Background
Boston Consulting group is a management consulting firm operating globally. It is considered to be the world’s leading in business strategy and advisor. Interestingly, the firm was established in 1963 by Bruce D. Henderson a previous Bible salesman (BCG, 2013). The firm has more than 75 offices all over the world located in 43 countries. It has partnered with clients from the public, private and the non-profit organizations. This is meant to help them realize the opportunities with the highest values as well as addressing their challenges and help transform the organizations. This calls for sound corporate social responsibility practices by the company in order to improve its relationship with all the stakeholders. Its approach combines a deep insight to the dynamics of the companies and does the marketing with close collaboration with the organizations. This ensures that the clients get lasting results and a competitive advantage against their competitors.
Surviving in the business world requires a company to develop and achieve strategies and objectives that transform the company’s relationship with its stakeholders into a lasting one. With more than 40 years’ experience, the firm’s main objectives are to be a representative of change to its clients, its people and society. BCG is committed to creating competitive advantage by offering unique solutions to its clients, constructing capabilities. It also aims at mobilizing its clients and providing clients with unmatched opportunities for growth. Interestingly, it also aims at driving prolonged impact and offering success, passion and trust. In order to fulfill its objectives, the firm has come up with strategies that help it serve its clients successfully. Its presence in over 42 countries has made it a top candidate for offering a global and a unified team. The firm believes in working together to better the outcomes, therefore, works very closely with its clients.
BCG Corporate Social Responsibility
Corporate Social Responsibility is the key a company’s success in maintaining and creating a good relationship with the stakeholders. Corporate social responsibility (CSR) defines how companies go about their business activities as well as providing an overall positive impact to the community. The CSR term can also be defined, as a progressing commitment by companies to behave ethically as well as contribute to the society’s economic development. This is meant to progress the quality of life of its workers, their families and the community at large. “All companies need to be aware of the quality of their management, as well as the extent and also nature of their impact on the community and other areas” (RBS, 2013).
Stakeholders of many companies are becoming interested in the activities of the companies. Some are more interested in what the companies are doing and how it is impacting the environment and the society while others are more interested on how companies are treating its workforce. Social responsibility should become an integral part of any company’s wealth creation process (Donaldson, Werhane, & Zandt, 2007). If managed well, it should improve the competitive strategy of the company and increase the wealth creation value to the community.
BCG believes that CSR is very important to a company’s general strategy. It should be driven by opportunities, understanding of the root causes and economics. The Firm also believes that the CSR strategy must be able to benefit the firm together with its employees, benefit the company’s market and society as a whole. As an international organization, BCG is very much aware that it plays a very important role in supporting the world’s development (BCG, 2013).
In order to do this, company has come up with practices that are in accordance with the laws and regulations of a sustainable environment. The firm also endeavors to come up with products and processes that are not harmful to the environment when used with other resources. Interestingly, the company views its clients as an important part of the company and, therefore, helps them to come up with a strategic approach that helps the clients gain competitive advantage while at the same time maximizing social impact and minimizing risks. Apart from the corporations, BCG also works with nonprofit organizations (the World Food Programme, Save the Children, WWF, and Teach for All and the Bill and Melinda Gates Foundation), philanthropic bodies and the government so as to maximize the value of corporate social responsibility.
The firm currently launched the 50@50 initiative which involves 50 social projects with a potential to make a difference to the local communities. BCG staff in all the offices around the world will take on projects that will make a difference in the areas concerning poverty, health, education, environment and hunger. The society has always expected business corporations to do the right thing ecologically and socially, and BCG ensures that it meets the society’s expectations by coming up with such projects. The firm must ensure that the people serving the society are morally upright and upheld the firm’s ethical principles.
Peter and Kramer view corporate social responsibility as an opportunity as opposed to costing as there are points of intersection between the company and the society. If the company is able to identify the point of intersection, it can be able to create a value proposition that will be unique to its clients. Each activity in a company‘s value chain affects the community, either positively or negatively (Porter & Kramer, 2006). This interdependence between the firm and the community may take two structures: Inside-out linkages and the outside-in linkages.
When the firm imposes on the community through its normal business operations, these are inside-out linkages. If the firm works out the steps of the value chain, it will be able to identify both the negative and positive consequences of its actions to the society. The firm’s impact on the society will change with time as the social standards are also bound to change (Porter & Kramer, 2006). Identifying these changes and acknowledging them will help it identify the consequences.
The external conditions affecting or that may affect the firm are known as outside-in linkages (Schein, 1990). They may include rule of law, talent availability or intellectual protection of property. These are factors that the firm need to be aware in order to influence and choose the social issues it will be able to address. Every company including BCG functions within a competitive environment which may considerably affect its strategy. The competitive impact compared to value chain social impacts is less general but can have the same importance to a company as the value chain social impacts. The meanings of the value chain social impacts for this firm are those that are highly affected by the activities of the firm. This occurs as the firm carries out its normal business activities.
The firm will need to set up its corporate social responsibility footprints and understand the kind of impact it has on society, as well as the environment in every step of the value chain and from every angle. Once this is done, the firm may move forward by creating a value proposition that will include having a beneficial impact to itself and the society. Not all companies can be able to build their whole value proposition around the social issues, but adding even a few of the social aspects will go a distance in ensuring that the companies fulfill their corporate social responsibilities’ objectives (Savitz, 2006).
Business people tend to believe that they are maintaining free enterprise when they proclaim that companies should not be concerned purely with the profits but also with the social responsibility and should take responsibilities for avoiding pollution, eradicating discrimination and providing employment seriously (Friedman, 1970). Managing social responsibility should be like any other part of managing the company. If the process of running social responsibility happens to make the company shift its focus from the main business, the trouble is not that the company is doing it at all, but it is that it is doing it badly (McElhaney, 2009).
A good corporate social responsibility should be able to support the main business activities of the company. It should also maintain good relationships with the key stakeholders and reduce costs and increase the company’s effectiveness. The work done by the company in the social sector shows how the firm is committed to bringing the best of its capabilities to everything it conducts.
References
BCG. (2013). Corporate Social Responsibility. Retrieved from The Boston Consulting Group: http://www.bcg.com/about_bcg/social_impact/corporate_social_responsibility/
Donaldson, T., Werhane, P., & Zandt, J. V. (2007). EthicaL Issues in Business: A Philosophical Approach. Upper Saddle River: Prentice Hall.
Friedman, M. (1970, September 13). A Friedman doctrine--: The Social Responsibility Of Business Is to Increase Its Profits A Friedman business doctrine. New York Times, p. 17.
McElhaney, K. (2009). A Strategic Approach to Corporate Social Responsibility. Executive Forum, pp. 30-36.
Porter, M. E., & Kramer, M. R. (2006). Strategy & Society: The Link Between Competitive Advantage and Corporate Social Responsibility. Harvard Business Review, 78-92.
RBS. (2013, 11). The importance of Corporate Social Responsibility. Retrieved from Regenesys Business Schoo: http://regenesys.co.za/2013/11/importance-corporate-social-responsibility/
Savitz, A. W. (2006). The Triple Bottom Line: How Today's Best-Run Companies Are Achieving Economic, Social and Environmental Success -- and How You Can Too. Hoboken: Wiley.
Schein, E. H. (1990). Organizational Culture. American Psychologist, 109-119.
