According even to middle-of-the-road popular
opinion, capitalism is at best a regrettable
necessity, a useful monster that needs to be
bound, drugged, and muzzled if it is not to go
on the rampage… Capitalism, if guided by
nothing but (its) own unchecked intentions,
would be wicked, destructive and exploitative –
bent on raping the planet and intent on keeping
the poor outside the capitalist West in poverty.
The Economist, January 20, 2005
My great-grandfather’s vision was to provide
affordable transport for the world. I want to
expand that vision for the 21st century and
provide transportation that that is affordable in
every sense of the word – socially and
environmentally, as well as economically.
Bill Ford, Ford Motor Company, 2005
“Beyond Petroleum”… It’s beyond belief.
Editorial, The Sunday Telegraph, 2002
Does this make you cynical?:
-The high level chicanery at firms like Enron and World.com aided and
abetted by auditors with equally questionable values;
-The exploitation of gullible investors by ‘entrepreneurs’ and analysts with
vested interests during the dot-com bubble;
-The environmental devastation wreaked by the Exxon Valdez on the
ocean and by logging companies on underdeveloped forested countries;
-The egregious level of financial compensation conferred on senior
executives while they are in the job and when they are sacked;
-The cavalier attitude to consumer health demonstrated by various tobacco,
pharmaceutical and building companies as they orchestrated silence and
deception about the effects of their products;
-The blind eye turned to the exploitation of off-shore workers, including
children, by some of the most famous branded goods companies;
-The connivance with corrupt officials and governments by some extraction
companies keen to protect valuable leases and mining rights;
- The popular movies and books, such as The Corporation or Michael
Moore’s works, which have presented these sorts of infamy to an
increasingly receptive audience.
The organizational slack perspective: those firms who
earn good returns can devote more resources to social
equity and environmental integrity;
The positive synergy perspective – combining the idea of
resource availability and good management the
advocates of this view suggest that, along with all the
other things they do well, good managers in firms with
available resources also do well in terms of social equity
and environmental integrity;
 The social impact hypothesis – the actual costs of social
equity and environmental integrity are small compared
with the higher risk entailed by failing to meet these
requirements. Increasingly those firms that are indifferent
to broader stakeholder demands will pay a price in terms
of reputational disadvantage and/or a higher risk premium
on debt/equity
Three theories linking CSR and financial performance

1. To what extent do you
think companies like
McDonald’s are
responsible for the eating
habits of their customers?
2. What should McDonald’s
do?

1. What do you think about
Monstanto’s position and
where do you stand?
2. What would you do if
you were CEO of
Monsanto today?
1. Whereabouts would you
place Johnson & Johnson in
terms of tables 10.1. and 10.2
from the chapter?
2. How might this placement
contribute to Johnson &
Johnson’s sustainable
competitive advantage?
3. What are the strengths and
weaknesses of The Credo from
a strategic management
perspective?
4. Would you advise other
corporations to develop their
own Credo’s to help guide their
strategy making in an ethical
way?


1. Discuss the “causes” of
the maltreatment of
workers as presented in
this case?
2. What can Enrico do?
3. How can these problems
be overcome?
1. Why do you think Handi
Ghandi Curries are so
resistant to changing the
name of the company?
2. What do you think
Handi Ghandi Curries
should do now? Can you
think of a way that the
Company can satisfy the
Gandhi family, be seen as
a good corporate citizen
and help develop their
sustainable competitive
advantage?

NEW LOGO
OLD LOGO
1. Why do you think Il
Ngwesi’s strategy has
been so successful?
2. Why do you think
“ecotourism” is a growing
industry?
3. The Il Ngwesi’s
sustainable competitive
advantage is obviously
connected to sustainable
development. But do you
think this is necessarily the
case for all corporations
these days?

1. Do you think The Post
Office’s management
should have handled the
relationship with Pat
differently?
2. How might the
association with Pat be a
part of The Post Office’s
sustainable competitive
advantage? Develop a
business case (or strategic
rationale) that would
support bringing back Pat
as the symbol of The Post
Office’s character.

Sunday, 19 November, 2000, 12:24 GMT
Postman Pat gets the sack
Postman Pat and Jess the cat: Waving goodbye to the Royal Mail
The services of the popular TV character Postman Pat are no
longer required by the organisation whose good name he did so
much to promote.
The Royal Mail says it has dumped the cheery delivery man
because he no longer fits in with the company's "corporate
image."