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RESPONSE - Insead

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Recommendations Recommendations for policy and standards<br />

resource allocation and investments, etc.) are made that ought to be adapted to<br />

integrate in an explicit and concrete way the assessment of the impact of those<br />

decisions on the stakeholders of the company and the societal context in general. The<br />

first step in this process of focusing the CSR debate on the challenges of internal<br />

corporate change could be to simply edit the definition of CSR proposed by the EU<br />

Commission as follows:<br />

“CSR is a concept whereby companies integrate social and environmental concerns in<br />

their strategic decision­making processes, in their business operations and in their<br />

interaction with their stakeholders on a voluntary basis”<br />

4. A New Way to Conduct Research on Business & Society. Moving from the<br />

implications of the results of <strong>RESPONSE</strong> to those derived from our experience in<br />

managing the research process, we believe that there are some important lessons to<br />

learn about the model of research that might be conducive to best results in this<br />

particular field of social science research. <strong>RESPONSE</strong> has been characterized by a<br />

stable cooperation between corporations, global stakeholders and scholars through all<br />

the phases of the research, from the formulation of the questions to pursue to the<br />

development of the design and of the research tools, to the recruitment of other<br />

participant companies all the way to the sense­making of the results of the analysis and<br />

the dissemination of the output. The results, despite the increased coordination costs,<br />

seem to be valuable particularly in terms of achieving a real balance between academic<br />

rigor and managerial relevance in the output of the research. We see this as the<br />

possible foundations of a new model to conduct academic research in this area, and<br />

suggest policy­makers and research funding agencies to take this experience into<br />

account as they search for ways to enhance the quality of future research endeavours.<br />

The existence and pursuit of a stable relationship and commitment to cooperation<br />

between research centre(s), business corporations and key stakeholders might be<br />

viewed as a necessary condition, and recognized as such, for the development of<br />

research plans that can aspire to real breakthrough results with both academic as well<br />

as managerial audiences.<br />

5. A New Role for the Partnership between Business and Society. The observations<br />

offered above can be integrated into one final recommendation on how to give content<br />

and purpose to the recent initiative by the EU Commission towards the establishment<br />

of a partnership between business and society (including academia) to enhance the<br />

quality of their mutual understanding, of their multiple interactions and of their<br />

development and growth. Our suggestion is to articulate and focus the concrete<br />

outcomes of the “partnership” on the facilitation of a profound change process inside<br />

both business corporations as well as their societal counterparts. The change process<br />

can be characterised in the following way:<br />

a. Establish the partnership. Even though the results of this study point to the fact<br />

that stakeholder dialogue might not be enough to effectively align managers<br />

and stakeholders’ understanding, for many corporations this might still be the<br />

first order of priority since the standard way to operate is to decide/act first, and<br />

communicate later. This is the logical first step for the establishment of any<br />

partnership.<br />

b. Partner for internal change, first. The enactment of any partnership, however,<br />

cannot rely solely on open and trust­based dialogue. It has to be supported by<br />

joint activities producing concrete output which improves the position of the<br />

“extended enterprise” (including all the “inner ring” stakeholders), thus creating<br />

a self­reinforcing cycle of results, commitment and adaptation (Doz and Hamel,<br />

1998). The content of these activities could be distinguished between<br />

externally focused (aimed at improving global societal issues, in the spirit of a<br />

“world­view”) vs. internally focused (aimed at changing the way business<br />

corporations and their social partners operate and function to integrate broader<br />

social responsibility principles). The core results of the <strong>RESPONSE</strong> project<br />

suggest that the priority among these two types of change initiatives ought to<br />

be given to internal change processes. In addition to the production of<br />

concrete output, such as for example innovative products with lower or better<br />

environmental or social impact, the advantage of this type of prioritisation<br />

<strong>RESPONSE</strong>: understanding and responding to societal demands on corporate responsibility<br />

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