Managing Turnaround with Responsible Entrepreneurship: The Kedrion Case
ROLE OF THE CEO: MANAGING BEYOND MATRIX, Pramod Rao and Simantee Sen, eds., Icfai University Press, 2007
25 Pages Posted: 17 Dec 2010
Date Written: October 23, 2006
In the present paper we argue that discipline and enthusiasm (or commitment) are two basic drivers of CSR within an organization. This distinction aims to capture “how” CSR is actually promoted and spread within an organization, while scholars seem to place greater attention on the “why”, that is the reasons for CSR. We explore this issue with the aim of Kedrion, an Italian, family – owned, medium – sized company, active in the hemoderivatives industry, that reacted to financial difficulties also by investing significant managerial resources to CSR and business ethics.
The Kedrion case suggests that discipline and enthusiasm can play very important, even if different, roles in promoting and spreading CSR within a medium – sized company. In case of discipline, CSR has as primary function that of reducing a firm’s risk profile and saving reputation, focusing on formal rules and specific organizational structures, and tends to have a relative loose linkage with corporate strategy. Instead, commitment and enthusiasm can become powerful drivers of a CSR when corporate strategy is inherently socially valuable, and a company’s decision makers put social value of corporate strategy at the core of both internal and external communication.
Keywords: CSR, business ethics, case study, Italy, corporate strategy
JEL Classification: M14
Suggested Citation: Suggested Citation