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  • Research shows how important CSR is for a corporation and a brand since consumers increasingly ask brands to be active in related fields.It shows that this is not restricted to the markets and countries of the Industrialised World. Increasingly, emerging markets (of which the APAC region) are an important part, demand brands that assume their social responsibilites
  • Consumers’ estimation of CSR does not end with a generic feeling of importance.Above and beyond this generic conceptualisation, CSR trickles down to the very concrete and tangible level of purchase decisions. This particular graph by Edelman shows that CSR is an important factor for consumers not merely in the decision to purchase a brand’s products but also to recommend and actively promote it; both concepts that become increasingly important in a world of eroded media trust. WOM is what we at Social@Ogilvy base our daily business on. CSR is an important tool to instigate such WOM. Hence, we need to take it seriously
  • Research further shows that in emerging markets consumers are seeking to take action more directly than in the markets of the WestEven though its still only an emerging trend, the lesser degree of trust in governments and more trust in themselves and their peers represents a trend that clearly shows the willingness and drive of consumers in emerging markets to take matters into their own hand.This is where it becomes most interesting from our and a our clients’ perspectives since Social Media (as we will show in this presentation) is an important tool that equips consumers with what is needed to translate this increased to wish to participate into real action.
  • Before going into the details of Social Media and its impact on CSR, however, it’s important to note that CSR as we know it today is an outdated model that needs change.It has both failed to solve any of the issues on our planet that it set out to solve as well as failed to woo consumers and convince them of a corporation’s or brand’s genuine interest in doing good. 65% of Indian consumers believe that brands engage in CSR only to build good PR and goodwill. Only 25% believe that brands do it because they really believe in its value.Hence, it is time to kiss good-bye to CSR 1.0 and lead a (r-)evolution of CSR 2.0
  • This graph show the detailed steps of the paradigm shift from CSR 1.0 to CSR 2.0The final part of this presentation will show how Social Media can help bring about this paradigm shift.
  • This graph show the detailed steps of the paradigm shift from CSR 1.0 to CSR 2.0The final part of this presentation will show how Social Media can help bring about this paradigm shift.
  • Interestingly, CSR 1.0 has a lot of lessons to learn from the Internet and the evolution it has undergone (and is still undergoing).Whilst Web 1.0 was mostly a one-way, non-interactive communication process and very paternalistic in nature, Web 2.0 has emerged as a collaborative and grassroot-driven way of communication.CSR 2.0 needs to develop into similar directions. And not only is the Internet the best idol after which CSR should model itself it is also the teacher and enabler that sees CSR through this development process since Social Media (probably the most prominent outcome of Web 2.0) is the tool that will make this development possible.
  • As outlined before, CSR 2.0 needs to be focused on the Social Enterprise and take into account stake holders and not just share holders. This is similar to what Michael Porter calls “shared value”, which propagates an integrated role of companies and businesses in society. Instead of treating ‘social responsibilities’ (and sustainability and all the other buzz words) as peripheral add-ons, Shared Value is about reconnecting a company’s success with societal progress, thus re-defining the very concept economic value (as an inextricable marriage of economic and societal progress)This is part of the re-definition of the concept of Corporate Citizenship.This re-definition is filled with new, unprecedented meaning by Social Media since for the first time since the inception of mass marketing and mass consumption, brands are able to connect to and communicate with consumers in a meaningful way beyond the mere proliferation of marketing messages.Consumers do the same. They actively communicate with brands, just as if they were parts of society . Hence Social Media can be understood as the birth of the real corporate citizen.Off the back of that, consumers expect brands to do more than merely donating money to various causes and play a much bigger role in society.more direct and genuine fashion.
  • In this development, Social Media is a double-edged sword for brands. For one, Social Media opens up a whole world of opportunities to engage consumers and genuinely practice CSR 2.0. In this way, Social Media is a push-factor for brands to become more activeOn the other hand, Social Media equips consumers with what is needed to really demand what they expect from brands in terms of CSR. Greenwash isn’t going to cut it much longer. In this way, Social media is a pull-factor from brands to respond to consumer increasing demands.
  • Over the last 2 or so years, the Internet has seen a great number of platforms emerge that use the logic of social media in order to empower people to do good. Judging by how well these platforms have been received, it seems that they tapped into a latent need of consumers to take action more directly.Just Giving: A for-profit platform that sets out to connect charities with consumers. Users can create an account, designate a cause they want to benefit (e.g. Cancer societies) and connect to other Netizens to invite them donate money for their cause. uPlej: A platform that directly harnesses the power of social networks. For each person of a users’ friend circle that signs up, money is donated to a designated charity / causeBlame Drew’s Cancer: A purely grassroot driven phenomenon. In 2009, a guy named Drew Olanoff was diagnosed with cancer. Trying to make the best out of his situation, he started a Twitter Hashtag #BlameDrewsCancer that people could use to blame what ever they wanted on Drew’s cancer. For each unique person who blamed something on Drew’s cancer, Drew Olanoff promised to donate USD 1 to a good cause (in his case, the LIVESTRONG foundation)Until this day, more than 14000 users have blamed more than 34000 things on Drew’s cancer, making it a huge movement!These phenomena show that people are seeking to direct action! This goes both for the people who invented the above platforms as well as for those or participated in them!!!
  • As we have seen on the previous slide, an increasing number of people want to take action themselves. They use Social Media outlets to take action for a cause they think is relevant.Often, however, people have a hard time imagining what they could do and how they could have an impact on the cause they want to benefit.This is where brand can come in. Like in the case of GE, a brand can call for a crowdsourcing competition to invite consumers of all walks of life to submit ideas for specific problems. GE’s Ecomagination platform was used as a social media hub in order to invite consumers to participate in this competition. Twitter was used to proliferate information about the competition. After the 2nd of 2 phases, GE had received more than 4000 ideas from consumers. he 10 winners then received investment money from GE in order to bring their ideas to live. Ecomagination is GE’s commitment to green products.Pepsi followed a similar route by allowing consumers to suggest charitable causes on their Pepsirefresh platform. Users were then invited to vote for the best suggestions. Pepsi in turn channeled money out of an overall USD 20million fund to the winning suggestions. The clout, capital and impact of a brand combined with the wisdom, ideas and on-the-ground knowledge of consumers can go a long way to channel money into the right directions
  • In 2008, Sichuan, a province in Western China, was struck by 8.0 earthquake that killed tens of thousands of people and left millions homeless.It was a great disaster in a year that was meant to bring great joy and pride to China (It was the year of the Olympic Games).Toyota Guangzhou realised the great sorrow that had infected Chinese Netizens and came up with an idea to allow these Netizens to express their condolences.Partnering with MSN, Toyota and MSN agreed to donate CNY 0.1 each for every user who would add a rainbow in front of his name. This rainbow quickly became a symbol among Netizens for the rescue efforts of the Chinese People. In the way it was perceived, it went far beyond a branded campaign. It became the symbol for showing strength in a moment of weakness and sorrow. It was a symbol for Chinese netizens to stand together.All the money that was donated to the Beijing Youth Development Foundation to alleviate the pain and hardship of children that were impacted by the earthquake
  • As part of a project for Oxfam in the Philippines, Ogilvy conducted social listening to replace the classic research approach of survey research. Social Media platform, especially in many markets of the APAC region, are known for being very outspoken and honest (as opposed to to other more traditional forms of media). Compared to traditional survey research, Social Media channels are also less biased.Due to this outspokenness, Social Media platforms are a great source to understand local conditions and identify the most pressing issues in a community/society.In our Oxfam case, the findings were the following: The buzz around the 3 categories ‘agriculture’, ‘climate change’ and ‘food justice’ (three of the pinnacle topic Oxfam deals with) was relatively low. Instead, the topics of discussion with the most volume were ‘ agrarian reform’, ‘ agriculture trade’, ‘food security’ and ‘consumerism’.The research further showed that Oxfam wasn’t typically associated with these 4 hot topics by consumers/netizens. Hence, Oxfam was lacking relevance among these people.This is what we’ve done for Oxfam in the Philippines. Based on the findings, we could then help Oxfam to formulate strategies on what issues to tackle and which communication channels to employ.In general terms, Social Media is hence a great tool to build a connection with consumers on the ground and identify problems that need action.
  • We have previously mentioned the importance of a closer ties with communities and the re-definition of Corporate CitizenshipIn addition to this, research by Clone/Echo shows that consumers (globally) expect companies and brands to become active on local levels. Yes, it is of paramount importance that powerful and big brands see the bigger picture of their Social Responsibility and tackle problems like World Hunger, Injustice etc.BUT: At the same time, brands must not forget to keep an eye on the local level. Very often, consumers care more about what’s happening at their doorstep than what’s happening somewhere on the other side of the globe (even if many might not admit to this)Following 2 decades of Globalisation, we have witnessed in the most recent past (think Financial Crisis), a phenomenon of “back to local levels” in which things like local sourcing, local shoplocal farmer markets, local community activities and the like have increasingly come to the fore of consumers’ concerns again.Even though less an Asian phenomenon, the global survey shows that also Asian consumers expect brands to become active in local, or at least national issues instead of just global issues.Also, with the decease of physical distance that the Internet Revolution has brought about, brands are able to make good causes much more intimate. This increases the relevance of cause-related initiatives from a consumer’s perspective, which in turn leads to increased willingness to take action.
  • Doing good often meant donating money in the past. This was a very transactional process. Even though consumers could get an emotional benefit from it, it was per se not very engaging.Social Media changes this. It turns the transactional act of donating money into an engaging experience from which consumers can derive more pleasure whilst maintaining the positive outcome of her charitable intentionsFor Sunpower, Ogilvy developed a Social Media Strategy to educate consumers. At the core of it was a Facebook based game, the “Social Discovery Game” through which users could familiarise themselves with the benefits of Solar Energy. The game was an educational quiz that tested users’ knowledge about solar energy. Weekly updates of the questions and bi-weekly prize giveaways ensured that users would come back to the game. The person with the highest number of points (earned by answering questions correctly) would get the Grand Prize of complete SunPower Solar Energy System worth up to USD 25,000.RESULTS: The game created 2x higher interest for an in-home consultation vs. brand website; average time spent per session with game: 17.48 minutes vs. 6.5 minutes brand website; 600 fans a weekP&G’S Friendly Future challenge offered consumers a P&G donation of one day of clean drinking water to Children’s Safe Drinking Watera pledge to commit to saving energy, conserving water or reducing waste for 90 daysa custom app to post participation in ‘The Challenge’ to their Facebook wall and their friends’ home pagestool to challenge their friends, send a page invitation and share their ‘Challenge’ tips with others based on their experiencesRESULTS: > 20,000 followers have taken the challenge and committed to saving energy, water or reducing waste for 90 days – this translates to over 20,000 days of clean drinking water donated> 7,000 posts have been made by supports with their tips and experiences on how to save energy, conserve water and reduce wasteApprox. 48,000 followers who built an active and engaged communityIt is this kind of community engagement that will ultimately lead to a long-term engagement with a good cause. Instead of of making a one-off donation, Social Media offers the opportunity to actively engage consumers in communities that they will become long term members of.
  • Currently, CSR often lacks transparency, which makes consumers (especially) in Asia rather suspicious towards such efforts.A recent example is the China Red Cross Society and the scandal it got involved in that evolved around Guo Mei Mei posing and showing off in front of expensive sports cars. This prompted netizens to question how someone related to a Charity Organisation could effort such luxury. Further allegations referred to various cases of corruption.No matter if true or not, the case had massive impact on consumers’ willingness to spend with charitable giving going down 88.6% from June to August this year according to an article of the Southern Metropolis DailyThe scandals usually have one thing in common: They are either unearthed of amplified exponentially on Social Media channels. The Red Cross Society case is no exception. SinaWeibo was the channel on which coverage gained traction and made the story go viral.Social Media is hence the most transparent channel available. This is a double-edged sword: On the on hand, it forces brands to act in truthful and honest fashion. On the other hand, it enables brands (who do this) to build trust and goodwill with consumers.
  • In the course of this presentation, the importance of CSR and the impact Social Media has on it have become obvious.Last but not least, it’s important to say that CSR is often understood as either treating the environment well or ensuring appropriate working conditions. Without a doubt, these are two aspects of paramount importance.However, we need to move towards a more comprehensive and integrated conceptualisation of CSR that integrates company internal and environment-related aspects.Going upstream in a companies supply chain, aspects like sourcing, working conditions, waste management etc become importantDown stream, brands need to actively engage consumers in their CSR initiatives and start acting like members of societyInternally, companies need to ensure things like equal opportunities, fight corruption, ensure appropriate work conditions etc.Social Media can play a role in all of these aspects and can hence become a 360 degree tool to ensure an all-permeating commitment to CSR.Downstream: Social media can be employed to create engaging and impactful campaigns that engage consumers in CSR initiatives. Through social listening, brands can further tap into the wisdom of the crowds and identify pressing issues through social listening exercisesInternally, Social Media can be employed as a tool to ensure proper conduct. Anonymous whistle bowing, aggregating employees’ ideas and suggestions are but two possible things companies could use Social Media for internally. Things like internal Wikis can be employed to lay out rules and regulations and increase awareness of and understanding for these.

Transcript

  • 1. CSR 2.0
    The Social Media Revolution of CSR
  • 2. 1
    Why CSR matters
    2
    How CSR needs to change
    3
    The impact of Social Media on CSR
    4
    Wrapping it up
  • 3. 1
    Why CSR matters
    2
    How CSR needs to change
    3
    The impact of Social Media on CSR
    4
    Wrapping it up
  • 4. 1
    Importance of CSR
    Asian consumers are increasingly demanding when it comes to brands’ CSR efforts
    “I think it’s very important that companies
    improve their behaviour with…”
    93% of Indian consumers say companies
    and brands MUST engage with CSR
    7%
    56%
    45%
    93%
    APAC
    APAC
    Environment
    Society
    Source: LOWE/Lintas, 2011
    Source: Nielsen, 2009; n=25,253 (51 markets)
  • 5. 1
    Impact of CSR
    Consumers in emerging markets are more influenced by CSR
    “I would __ a product from a brand that does CSR”
    80%
    78%
    77%
    INDIA
    CHINA
    BRAZIL
    Global Average
    Source: Edelman, 2010; n=7,000+ (13 countries)
  • 6. 1
    Looking for empowerment
    Consumers in emerging markets want to take action more directly
    “Which one of the following entities do you think should be doing the most to support good causes?”
    52%
    42%
    Enter Social Media…
    13%
    12%
    12%
    9%
    9%
    8%
    8%
    7%
    6%
    2%
    1%
    4%
    4%
    4%
    4%
    3%
    Emerging Markets
    Global Average
    Source: Edelman, 2010; n=7,000+ (13 countries)
  • 7. 1
    Outdated CSR 1.0

    In its current state, CSR is not able to fulfill consumers’ demands or impact the world
    Corporate social responsibility has been a complete failure at seriously addressing the real issues of sustainable business practices.

    - Dr Wayne Visser
    “Why do you think brands do CSR?”
    65%
    25%
    22%
    Build reputation
    True
    belief
    Build better products
    Source: LOWE/Lintas, 2011
  • 8. 1
    Why CSR matters
    2
    How CSR needs to change
    3
    The impact of Social Media on CSR
    4
    Wrapping it up
  • 9. 2
    Paradigm shift towards CSR 2.0
    CSR 1.0
    Charity Projects
    Shareholder
    Paternalistic
    Image - driven
    Marginal (“add-ons”)
    Used to mitigate risk
  • 10. 2
    Paradigm shift towards CSR 2.0
    CSR 1.0
    CSR 2.0
    Charity Projects
    Social Enterprise
    Shareholder
    Stakeholder
    Paternalistic
    Collaborative
    Image - driven
    Performance - driven
    Scalable
    Marginal (“add-ons”)
    Part of the core purpose
    Used to mitigate risk
  • 11. 2
    Learning from Web 2.0
    CSR can learn from the Internet in order to become more effective
    Grassroot
    Web 2.0
    Social Media
    Collaborative
    Paternalistic
    Web 1.0
    CSR 1.0
    Top down
  • 12. 1
    Why CSR matters
    2
    How CSR needs to change
    3
    The impact of Social Media on CSR
    4
    Wrapping it up
  • 13. 3
    Moving Corporate Citizenship Towards Shared Value
    Social Media enables
    Shared Value: Changing social responsibility from “earn and give back” to connecting a company’s success with society’s progress.
    - Michael Porter*
    *http://hbr.org/2011/01/the-big-idea-creating-shared-value
  • 14. 3
    Social Media’s Double-Edged Push and Pull
    93%
    Social Media increases opportunities for brands and demands from consumers
    Push
    Pre Social Media
    Social Media
    Push
    Engage
  • 15. 3
    Empowering grassroots movements
    Emergent “giving” platforms employing Social Media
  • 16. 3
    Creative and Collaborative
    Through Social Media, brands can empower people and engage them in good causes
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    $
    Submit ideas
    Crowd Sourcing
    Donation
    Vote
    Ecomagination
    Chosen Winners
  • 17. 3
    Scalability
    Through Social Media, brands make their CSR efforts scalable
    6,216,469
  • 18. 3
    Responsiveness
    Through Social Media, brands can identify issues that really matter to people
  • 19. 3
    Glocality or the end of Globalisation?
    Social Media helps brands connect with consumers and become part of the community
    Consumers want companies to focus on issues that improve the quality of life ___
    30%
    33%
    37%
    Locally
    Nationally
    Globally
    Source: Cone/ECHO, 2011
  • 20. 3
    Engagement
    Social Media shifts from transactional experiences to engaging ones
    Sunpower “Solar Discovery Game”
    P&G “Future Friendly Challenge”
  • 21. 3
    Transparency
    Less room for ‘greenwashing’ and more need for honesty and sincerity
    Guo Mei Mei’s Weibo was shared over 1000 times within 2 hours after it was first discovered. She later became subject of a big Human Flesh Search.
  • 22. 1
    Why CSR matters
    2
    How CSR needs to change
    3
    The impact of Social Media on CSR
    4
    Wrapping it up
  • 23. 4
    360º CSR
    CSR applied to a company as a whole and its environment
    Social Listening
    CSR campaigns
    Down Stream
    • CSR campaigns
    • 24. Cause-related promotion
    • 25. Ethical products
    Up Stream
    impact
    • Waste
    management
    Internal CSR
    Crowdsourcing / Social Listening
    Information sharing / support
  • 31. Thank You!