A. Social responsibility is a positive force that drives businesses to balance
profit seeking with promoting the well-being of society and environment as
a whole (Czinkota, 2013). Jeff’s lack of understanding in terms of why social
responsibility is important can negatively impact the future of his company
because social responsibility is becoming a widely adopted practice around
the world. In nowadays society, consumers become increasingly conscious
of what companies they support with their dollars. In other words, they
support companies that align with their morals, which means there is a
correlation between social responsibility and increased profits. If Jeff
continues to understate the importance of corporate social responsibility,
he may find his company losing to Donovan’s and other competitors that
implemented social responsibility policies and strategies promptly.
B. Perry’s Printing absolutely should respond to the new strategic plan
published by their competitor to show current and potential customers that
Perry’s is up to par with the industry’s sustainability standards, has a
sustainability strategy in place, and has been adhering to it for a while
without making it public. This is very important in order to not undermine
their current success, profitability, and competitive edge. As Czinkota
(2013) noted, companies’ prosperity is dependent upon the inclusion of
sustainability in their strategy-making. If they chose to not respond, Perry’s
may be perceived indifferent toward sustainability concerns and their
legitimacy, reputation, and future profits may take a hit as consumers frown
upon businesses that disregard social responsibility.
C. In recent years, sustainability has become a golden standard of
conducting business due to a wide spread understanding by both
businesses and consumers that resources are limited and that their
preservation is no longer an option but rather a must. According to
Leinwand and Mainardi (2016), differentiation entails distinctive capabilities
that are not easily copied by competitors. These unique capabilities have to
be used to consistently execute better than competitors. With this in mind,
I believe sustainability cannot be a differentiation strategy because it is
becoming a common practice to conduct business in the current market
conditions. Most organizations have to adopt sustainability practices
dictated by the industry they operate in; otherwise, they may receive a low
rating by Kinder, Lydenberg and Domini & Co. (KLD). According to Chapter
10 of our weekly reading, KLD assesses companies based on their social,
governance, and environmental performance (p. 324). In conclusion,
sustainability can only be considered a strategy if a company created unique
sustainability practices or measures that cannot be copied by its
competitors.
References
Czinkota, M. (2013, January 13).
Global Consumerism And Sustainability
.
Professor Michael Czinkota. http://michaelczinkota.com/2013/01/global-
consumerism-and-sustainability/
Leinwand, P., & Mainardi, C. (2016, February 3).
Creating A Strategy That
Works
. strategy+business. https://www.strategy-
business.com/feature/Creating-a-Strategy-That-Works
