Accommodative strategy is a strategy that companies use to respond to the social and environmental pressures which take into consideration the interests of their stakeholder and society.
This comprises taking the initiative to tackle social and environmental problems even if the company is not involved in them.
Definition of Accommodative Strategy
An accommodative strategy is “a strategy that involves making changes to one’s own behavior or expectations in order to get along with others” – Morris & Keltner,
An accommodative strategy is “a strategy that involves giving in to the demands of others” – Druckman
An accommodative strategy is “a strategy that involves sacrificing one’s own interests in order to preserve the peace” – Mayer
Why Companies Use Accommodative Strategies
Companies use accommodative strategies for a variety of reasons, including:
- To improve their public image and reputation: Companies that show commitment to the society and environmental responsibility create good reputation for them and draw more customers and investors.
- To follow legal and regulatory requirements: Many governments have imposed legislations and statutes compelling corporations to deal with the social and environmental problems. Companies can avoid legal cases and penalties by adopting an accommodative strategy.
- To grow a positive relationship with stakeholders: The company may raise concerns among stakeholders, including employees, customers, investors, and the community about the social and environmental impact. Accommodative strategy can be vital in developing trust and loyalty among stakeholders.
How Companies Put in Accommodative Strategies
Accommodative strategies can be install in various ways, including:
- Corporate Social Responsibility (CSR) activities: Companies can engage in CSR activities such as donating money to charity, supporting community initiatives, and promoting environmental sustainability.
- Compliance with legal and regulatory requirements: Companies can ensure they are meeting all applicable laws and regulations related to social and environmental issues.
- Ethical decision-making: Companies can integrate ethical considerations into their decision-making processes, ensuring they are not causing harm to society or the environment.
Examples of Accommodative Strategies
Here are some examples of how companies can install accommodative strategies:
- Investing in sanitization programs to improve public health: Companies can partner with local governments or non-profit organizations to provide sanitation infrastructure and services in underserved communities.
- Supporting education initiatives in rural areas: Companies can sponsor educational programs, build schools, or provide scholarships to students from underprivileged backgrounds.
- Investing in water conservation and waste management programs: Companies can develop water-saving technologies, install recycling initiatives, and reduce their environmental footprint.
- Promoting employee development programs: Companies can offer training, mentorship, and skill-building opportunities to their employees to grow their career prospects.
- Supporting healthcare initiatives in underserved communities: Companies can partner with healthcare organizations to provide accessible medical care and support to those in need.
- Contributing to rural development projects: Companies can invest in infrastructure, agriculture, or job creation programs to uplift rural communities.
The Four Generic Strategies of Social Responsiveness
Also to accommodative strategies, there are three other generic strategies of social responsiveness:
- Reaction: Companies adopt a reactive approach, when they do not address social or environmental concerns until they are forced to do so by legal, regulatory, or stakeholder pressure.
- Defense: Companies adopt a defensive approach when they resist or downplay social or environmental concerns in an attempt to protect their business interests.
- Proaction: Companies adopt a proactive approach when they expect social or environmental issues and take steps to address them before they become problems.
The accommodative strategy lies between reaction and defense, demonstrating a willingness to engage with social and environmental issues while seeking to balance the company’s interests with societal concerns.
Proactive strategies represent a more forward-thinking approach, while reactive strategies rank short-term interests over long-term sustainability.