Final Presentation

One of the other CSR models is called 3-theater model. Based on research, conducted by
Rangan, Chase, and Karim, CSR practices are divided into 3 theaters.
The theaters are the following:
Philanthropy
Operational Improvements
Business Model Transformation

Companies at the first stage is focusing on philanthropy. The goal here is to support social
welfare, charitable donations or health and human rights. It’s not necessarily the case to
generate money or enhance business performance. Engagement with community initiatives
and support for employees are more important.

Operational Improvements:
At this stage the organization has an existing business model, and the goal is to make it more
effective to bring social and environmental benefits to the company. Generating revenue
might be the case here. Some examples of this theater are investing in healthcare,
education, or employee working conditions. Initiatives for reducing waste.

Business Model Transformation:

Here, the company’s goal is to come up with a completely new business model to solve
social and environmental issues. Instead of extending the business model companies create
new models that are likely to improve financial performance.

Issue:

Right to proper healthcare. Although, Hungary has a tax-funded universal healthcare system
that covers 100% of the population, the hospitals are not well-equipped, and the country is
lacking educated doctors. This is the reason why the wealthier population of Hungary pays
extra for private healthcare services, however they are too costly and not that many people
can afford to pay more.

In conclusion, I recommend Calvin Klein to provide healthcare related promotions to its

employees, such as healthcare packages of private health companies. Or make donations for
health-related charities such as Bátor Tábor which is a non-profit organization that provides
therapeutic methods and summer camps for chronically ill children.