Understanding the Dynamics of the Value Chain

Conclusion

A firm can meet its corporate social responsibilities through the effective management of the value chain. The way the activities in the value chain are managed will impact the greater society, while societal factors impact the performance of those activities. This effort must be guided by the concept of shared value, that there exists a mutuality of benefits to the firm and the greater society of which it is a part.

An individual firm cannot address all of society’s issues. Therefore, it should focus on those that intersect most closely with its business. In that way, its corporate social responsibility strategy may become part of the more general corporate strategy. This approach gives social responsibility staying power because ...