Danone, a leader in the food and beverages sector, aims “to bring health through food and beverages to a maximum number of people” (Danone, 2008a). The company‟s CSR policy, which goes back to the 1970s, is highly strategic and integrative (Garriga & Melé, 2004: 53-60). According to the company, sustainability which is how it refers to CSR) is part of its DNA (quoted in IUCN, 2008: 12). After briefly describing the context of its operations and the company‟s history, I will analyse three domains where the company is actively involved in CSR activities: health & nutrition; human resources and organisational learning; and social enterprise. Finally I will use Baron‟s issue life cycle (Baron, 2000: 35) to examine how Danone has reacted – or proacted – the threat emanating from the anti bottled water campaign. Overall, the company‟s CSR activities are linked to its key competencies and play a key role in strengthening its competitive advantage.

1. CONTEXT, COMPANY HISTORY & OVERVIEW. CSR in France. CSR in France has evolved as a result of endogenous and exogenous factors, as a result of the interplay between local traditions and global evolutions. At a national level, France is characterised by a strong public sector, and the public sentiment is that this should remain so. In 1977, France passed a Social Reporting Law (“bilan

social”), which made it mandatory for listed companies to report on social and environmental issues. France is also characterised by large social movements, often involved in strongly conflictual relations with the State and employers; this explains
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to a certain extent the prominence of labour issues in French CSR. It must also be said that there exists a general mistrust towards the idea that the private sector can provide for the public good; this in turn has consequences in the way CSR is communicated to the public (Beaujolin & Capron, 2005; Berthoin Antal & Sobczak, 2007). Hence, “the dynamic towards CSR started through pioneer