Introduction
The social impact of Pinduoduo’s (PDD) value chain is to provide to facilitate the connection between manufacturers and customers and ensure low prices. The mission of the firm is to serve all and benefit all, which assumes strategic CSR mindset, yet its actions showcase a greater interest in profit and preserving reputation. The reason why social influences on competitiveness are so prevalent in PDD’s case lies in the timing of the company’s CSR efforts.
Discussion
First, the actual strategy of PDD was to lower costs at the expense of customers’ satisfaction. It is evident in the complaints regarding the quality of sold products as well as their legal veracity. It was not until PDD’s reputation prevented it from expanding to developed cities that it altered its strategy to fit CSR standards. It led the company to address two social issues – lack of business opportunities and low quality of products. Therefore, the shift to CSR was motivated by the desire to cut costs, rather than genuine concern for society.
Second, the corresponding corporate social agenda was in line with the company’s barriers to making profit. It is evident in the way PDD benefited from the greater influx of farmers who were willing to use the company’s digital platform. Not only were workers incentivized by lower costs, but they could also take advantage of the PDD’s educational program. Combined with the greater participation of children in rural areas, the increase in the number of farmers using PDD’s platform provided the company access to richer cities.
Conclusion
Altogether, it should be evident that PDD engages in responsive rather than strategic CSR. The company started investing in CSR solutions only after its management realized that reputation damage prevents them from accessing developed cities. Although the subsequent efforts did help society and farmers, none of them were outlined in the initial strategy, which was to lower costs. A genuine strategic CSR company would first ensure the quality of products and not see it as a way of attracting new customers.