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Gaining sustainable competitive advantages through CSR engagement and communication

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A case study of Starbucks

A case study of Starbucks

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  • 1. Gaining sustainable competitive advantages through CSR engagement and communication A case study of Starbucks Tine  Grarup     January  27th  2012     Corporate  Communica7on  Exam   MARSTER  of  ARTS  in  CORPRATE  COMMUNICATION  
  • 2. Agenda The  Findings   CSR  Cri/cism   Gaps  in  the  corporate  brand   Starbucks:  Green  or  Greenwashing?   Ques/ons  and  Comments   Why  have  a  Unified  Corporate   Brand?   Transparency   How  to  overcome  CSR  Challenges  
  • 3. The Findings •  CSR:  a  valuable  and  central  element  of  corporate  strategy   •  First  mover  advantage   ▫  Capitaliza7on  on  compe77ve  asymmetries     ▫  Mission  central,  corpora7on-­‐specific  and  stakeholder  visible  CSR  engagement     •  Stakeholder  management  and  communica7on   ▫  Reputa7onal  benefits     ▫  Behavioral  commitment   •  Unique  corporate  brand  -­‐>  sustainable  compe77ve  advantage  
  • 4. CSR Criticism •  CSR  is  misused  as  a  marke7ng  ploy   ▫  Is  Greenwashing  now  CSR  washing?   •  Abuse  of  power  through  CSR   •  CSR  favors  the  interest  of  business  over  the  righVul   concerns,  demands  and  expecta7ons  of  wider  society   •  Are  companies  using  CSR  to  hide  unsavory  business   ac7vi7es?   “There  is  one  and  only  one  social  responsibility  of  business  –  to  use  its  resources   and  engage  in  ac7vi7es  designed  to  increase  its  profits”  Friedman,  1970  
  • 5. Gaps in the Corporate Brand Starbucks: Green or Greenwashed? Vision   Image   Culture   Ø     Stakeholder  awareness   Ø     Effec/ve  communica/on  of  vision  
  • 6. Why have a Unified Corporate Brand? •  To  integrate  the  corpora7on’s  stakeholders   •  Internal  commitment  and  iden7fica7on  with  the  CSR  agenda     •  Give  customers  a  sense  of  community  –  brand  iden7fica7on   allows  for  premium  pricing   •  Corporate  brands  create  common  grounds   •  No  ma[er  the  product,  the  corporate  logo  will  aspire   corporate  values  
  • 7. CSR scandals Ø Nike  accused  for   using  sweatshops   (1990’s  )   Ø BP’s  oil  spill  in  the   Gulf  of  Mexico  (2010)   Ø MaOel  using  lead   poisoning  paint  in   their  toys  (2007)  
  • 8. Transparency Ques/oning  Transparency…   •  The  double-­‐sided  nature  of  transparency   •  Are  stakeholders  really  interested  in  more  informa7on?   •  Corpora7ons  are  (re)defining  boundaries  of  transparency   •  Is  transparency  simply  a  simula7on  of  openness?   •  Transparency  –  now  a  tool  of  power   “You  cannot  stop  people  talking  about  you,  but   you  can  show  a  willingness  to  be  open  an  honest”
  • 9. How to overcome CSR Challenges Is  it  socially  responsible  to  influence  behavior?     •  Corpora7ons  take  advantage  of  consumer  trends  and  a_tudes.     However…     •  Consumers  want  to  be  a  part  of  the  solu7on  not  the  problem.       The  corporate  idenCty  is  not  worth  much  without  a  favorable  image   Think  twice   Be  aware  of   context   Tell  a  true   story   Keep  CSR   central  

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