Page 188 - Performance Leadership

Chapter 10 The Social Role of Organizations • 177

come up with most likely can be applied within TNT too and affect
the normal business. Volunteering helps build management skills.
Being active in a different environment provides a fresh perspective on
the work environment in general.
A consulting company allows and encourages some of its best and
brightest consultants to teach at business schools and universities. The
fees the school can pay do not compare to consulting rates, but the con-
sulting company feels it is an excellent social activity. It teaches stu-
dents about business, and they may remember their teacher when they
are in the position to hire consultants. But there are other advantages
as well. Consultants that need to teach students are forced to rethink
the basics and essentials of their profession and work on their teaching
skills. Teaching skills contribute to their professional development and
allow the consultants to advance their career. The consulting company
then can charge a higher rate for the consultant.
Encouraged by its CSR results, the same consulting company has
recently decided to partner with a few banks, contributing to building
a system to manage microcredits. This is interesting for multiple rea-
sons. First, because it helps other organizations, the banks, to be suc-
cessful with CSR, as part of the consulting firm’s own CSR program.
Furthermore, once the market opens for microcredits on a larger and
more commercial scale, the firm will have a leading position.
In general, there are soft advantages of CSR to organizational learning
too. Managers who are active in the community deal with different types
of constituents; this provides them with a fresh perspective on their own
organization and customers. Skills obtained during their community activ-
ities are likely to prove valuable within the company. Also, employees who
in their spare time do community work, already show a collaborative atti-
tude. This is bound to be applied in their daily jobs as well.

Financial Bottom Line
There is no demonstrated direct and positive link between financial
performance and CSR practices. There are a few explanations for
18
this. For instance, most organizations have decided CSR is impor-
tant, but don’t know yet how to exploit it or how these smart strategies
will affect market performance. Also, it is suggested there simply might
not be a business case for some initiatives. There is also a different way