Aramex Case Study

What principles at Aramex strategically approach CSR and sustainability?

It is evident that Aramex is using a differentiation strategy that revolves around dynamic-interconnectedness between business and society that creates a strategic CSR orientation for Aramex. A number of principles lead to Aramex's strategic approach to CSR and sustainability. Firstly, managers at Aramex stressed that sustainability and CSR were not public relations (PR) tools. It is believed that sustainability at Aramex was a mature institutionalized practice and a core value that is ingrained at the heart of the company's culture. CSR and sustainability are essential to Aramex's differentiation strategy that focuses on long-term success for the business and its surrounding community rather than short-term profitability. Aramex's commitment to their strategy was demonstrated during the 2009 financial crisis when their budget for sustainability was not reduced at all. Aramex's refusal to reduce their sustainability budget actually translated into a 23 percent increase in net profits, demonstrating the effectiveness of the strategic CSR orientation. Another principle that was utilized by Aramex management was to move from share value to shared values. As previously mentioned, Aramex believes profit on its own is short-sighted and that the companies focus should be less on "share values and more on shared values". The principle of "share value to share values" goes hand in hand with the stakeholder-based view. It is believed that if Aramex manages to serve the needs of all stakeholders (not just shareholders) such as employees, customers, business partners, communities and society, and the environment and environment-related stakeholders, Aramex will be capable of building sustainable shareholder value. Many companies decide to pursue the short-term goal of achieving profits at the expense of stakeholders. Aramex has the view that interwoven interests and shared values are the key to...