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Corporate Social Responsibility: Microsoft Case Study - YouTube
Channel: Americas Business Channel
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hi everyone let's let's say you come
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across a company that has great roi
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pays high dividends has rising stock
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value but pollutes the environment
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would you invest in such a company now
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let's speak to the opposite a company
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with slower financial growth that cares
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about the environment
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would you invest in this one currently
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microsoft is rated one of the most
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eco-friendly and socially responsible
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companies in the world
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they make donations to indian farmers 80
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children in vietnam
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and help save and dangerous elephants
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species in africa among
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other initiatives they also rated carbon
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neutrality and contribute with
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billions of dollars to communities and
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ngos in 2018
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why should companies allot so much of
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their profit to csr
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instead of returning it to their
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shareholders
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does microsoft really know what
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stakeholders want
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let's take a deeper look into that
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nowadays the term sustainability green
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strategies
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and csr are frequently used but they
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always lead to a conflict of interest
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between
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what shareholders and stakeholders want
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on one hand we know that the main
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objective of the business is the
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generation of profits
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on the other hand business have an
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obligation to make decisions
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that would ultimately benefit society
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it seems that companies somehow have to
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balance out these two objects at the
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same time
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an editorial in the economies oneness
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asks that
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this form of collective capitalism will
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result in more harm than good
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why are so many people opposed to the
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concept of social responsibility
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well in fact there are a few different
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reasons why
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a company that invests in sustainability
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should be able to
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to get something in return but how would
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you we measure this return it is not
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really clear
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what society expects from business today
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this way companies tend to define for
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themselves
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what's good and what's bad leaving the
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society without a voice
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another problem related to the trades
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office some firms might face
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for example climate change being
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addressed that can backfire with job
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cuts in the oil and gas
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industry now let's think about csr
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initiatives from a customer's
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perspective
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some prefer greener options for instance
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one may choose a hybrid car
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over a standard model that may be
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cheaper
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but more pollutant however other
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consumers are more
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price sensitive and simply view
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sustainability attempts
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as merit propaganda indeed
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in some market segments a company that
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invests in csr
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achieves an advantage over its
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competitors
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now let's take a look at this issue from
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an economic development perspective
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emerging counters present a wide range
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of challenges in the csr agenda
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where their companies may lack funds to
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invest in such initiatives
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as a role making a financial
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contribution is usually seen as the most
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effective way a company can create
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social impact but customers
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csr issues in emerging countries present
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dilemmas and stressful choices despite
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large companies in developing countries
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adhering to csr policies there is
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still a lot of work to be done in order
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to effectively combat
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issues such as child labor and poor
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working conditions
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issues like this persist because there
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are several
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factors present in emerging countries
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that make it difficult for companies to
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successfully implement csr policies
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and reach their sustainability
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objectives these factors include
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economic volatility lack of investment
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among
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others most firms including large
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companies such as microsoft
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struggle to find a suitable win-win csr
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policy
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the high-tech this high-tech giant has
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become
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a two-time champion among the fairest
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companies
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according to the non-profit just capital
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and there is a good reason for this
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recognition
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a huge donation add up to 1.4 billion
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dollars
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provide outstanding benefits for its
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employees
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and commit to environmentally friendly
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decisions
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this way microsoft indicates which
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direction socially
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responsible companies should follow
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interestingly enough
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financially microsoft csr efforts are
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paying off
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taking a stance on sustainability
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slightly affecting its net income
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but the firm still has growing happiness
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maintain high return on invested capital
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and shares are
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surging with a huge demand this positive
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result indicates
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that consumers are more likely to engage
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with companies
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and brands that are responsible
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but what about consumers perception of
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the company's performance in practice
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well the microsoft needed as well
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the company was among the top 10 most
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reputable firms in the reputation
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institute in 2019
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of course there are other outstanding
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players
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who manage to satisfy both stakeholders
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and
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shareholders such as paypal
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anthem and procter and gamble due to
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corporate responsibility often being
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equated to philanthropy not to bring
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an easily identified financial returns a
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double win situation with
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like microsoft can be considered an
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exception
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another fact is that very few do
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rigorous
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research to find out how their key
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stakeholders view
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the same initiatives as we can see there
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will always be the clash of ideas
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regarding csr
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and more specifically between
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stakeholders and shareholders
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large companies like microsoft have
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demonstrated that they can
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handle this issue but what about smaller
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ones
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the way to make capitalism work better
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for all wouldn't
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require certain systematic changes
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for example a healthy competitive
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economy
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with anti-trust laws would stamp out
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today's lobbying and illegal bodies
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at the end of the day competition
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encourages firms to anticipate the
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interests of
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consumers workers and regulators
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and what about young managers who get
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job offers from companies do they
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consider
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how these companies tackle environmental
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and social issues before
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heading to an interview i'd like to hear
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your opinion in the comments below
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regarding sustainability what's more
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important for you
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in the corporate world do you like
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today's video
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this is a very important matter for you
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as a manager
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and for your company succeeding by
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making right
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choices can be extremely difficult
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especially
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when we face ethical dilemmas that are
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more common than we think
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it's crucial to our society and the
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planet
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that organ chains are made in the way
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business is done today
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this video is part of the three mini
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course about corporate social
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responsibility
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with microsoft case study and is
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supported by cool business school
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to enroll click the link on the
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description students receive a
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certificate of
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participation and scholarships for
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courses abroad
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thank you and see you soon here in the
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americas business channel
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or any other social media platforms see
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you
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take care
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