The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Wednesday, March 26, 2008

Strategic CSR - Microsoft

The article in the url link below reports on a recently announced offer from Microsoft to donate parts of its MSN software code to high schools around the world:

“The bid to attract future developers is the latest extension of Microsoft's long-running battle to keep open-source software at bay, while also fending off advances by companies like IBM and Adobe.”

Microsoft is clear that its goal is competitive—to encourage software students to learn about its technology and integrate it into their work, but there is also an implicit message of social responsibility (i.e., the firm is donating this code for the good of society). Is this social responsibility, however, or is it just common sense competitive business strategy? Is it philanthropy or is it shrewd marketing? Is Gates adding social value by helping educate the software developers of the future, or is he detracting value by squeezing open source software and limiting competition (or both)?

“As many as 40m students around the world who study maths or science-related subjects will eventually have access to the software, Microsoft executives estimated.”

And, is this story so different from the recent story in which McDonald’s (Issues: Wages, p204; Special Cases of CSR: Fast-Food Industry, p283; McDonald’s, p295 and p305) was forced to withdraw its sponsorship of school report cards due to consumer concerns over advertising to children? Maybe I am becoming too skeptical, but my sense is that Microsoft is wrapping an effective business strategy in clever CSR marketing.

Take care
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther

Gates woos schools with free software.
By RICHARD WATERS
430 words
19 February 2008
Financial Times
London Ed2
Page 25
http://www.ft.com/cms/s/0/6202f720-de7b-11dc-9de3-0000779fd2ac.html