CSR

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CSR

  1. 1. Jakarta CMO Club Wednesday, 26th March 2008 Corporate Social Responsibility (CSR) What is CSR? What are the costs of not having CSR? What are the benefits of CSR? What are the types of CSR? How to decide what CSR to engage in and how much is enough?
  2. 2. “Corporate Social Responsibility is a commitment to improve community well-being through discretionary business practices and corporate resources.” Philip Kotler and Nancy Lee, “Corporate Social Responsibility,” Wiley, 2007
  3. 3. With Nancy Lee at Kotler’s 75th Birthday celebrations in Kellogg, Aug 7, 2006
  4. 4. With Philip Kotler, Hermawan, Michael and Ariana at Kotler’s birthday celebrations in Kellogg, Aug 2006
  5. 5. “Corporate Social Responsibility is a commitment to improve community well-being through discretionary business practices and corporate resources.” Philip Kotler and Nancy Lee, “Corporate Social Responsibility,” Wiley, 2007
  6. 6. Basic Business Philosophy
  7. 7. Basic Business Philosophy Seven Principles states the codes of conduct for employees in their daily work Contribution to Society Fairness and Honesty Cooperation and team Spirit Untiring Effort for Improvement Courtesy and Humility Adaptability Gratitude Profit is the reward and measure of contribution to society
  8. 8. Companies that got into trouble due to CSR issues Dasani mineral water (part of Coca-Cola)
  9. 9. McDonald’s was forced to withdraw an advert that claimed that after selecting its potatoes, “we peel them, slice them, fry them and that’s it.”
  10. 10. McDonald’s was forced to withdraw an advert that claimed that after selecting its potatoes, “we peel them, slice them, fry them and that’s it.” This omitted par-frying the chips, freezing them, adding a dextrose solution and salt.
  11. 11. CSR examples IBM UK Reinventing Education Partnership programme Interactions and sharing of knowledge through a web-based technology - the “Learning Village” software. Culture of openness and sharing of good practice
  12. 12. Avon – a partnership with Breakthrough Breast Cancer, and its Breast Cancer Crusade has raised over 10 million pounds since its launch 12 years ago.
  13. 13. 6 Options the types of CSR? of Doing Good What are Cause Related Marketing Corp Social Cause Marketing Promotions Socially Corporate Responsible Philanthropy Business Practices Community Volunteering Source: Philip Kotler and Nancy Lee, Corporate Social Responsibility.
  14. 14. Cause Promotions Provides funds, in-kind contributions, or other organization resources to increase awareness and concern about a social cause
  15. 15. Option 1: Cause Promotions Cause promotions MTV – Staying Alive Campaign Example
  16. 16. Cause related marketing Commits to making a contribution or donating a percentage of revenues to a specific cause based on product sales e.g. donate 10% of the price of each product sold
  17. 17. Option 2: Cause Related Marketing Cause related marketing RED Campaign Example It is the first time that the world’s leading companies have made a commitment to channel a portion of their profits from sales of specially– designed products to the Global Fund to support AIDS programmes for women and children in Africa.quot;
  18. 18. Social Marketing Supports the development and/or implementation of a behavior change campaign
  19. 19. Social Marketing Anti-Smoking Campaign
  20. 20. Corporate Philanthropy Makes a direct contribution to a charity or cause, most often in the form of cash grant, donations, and/or in-kind service
  21. 21. Corporate Philanthropy Warren Buffett Example
  22. 22. Community Volunteering Supports and encourages employees, retail partners, and/or franchise members to volunteer their time to support local community organization and causes
  23. 23. OptionVolunteers Example GE 5: Community Volunteering
  24. 24. Socially responsible business practices Adopts and conducts discretionary business practices and investments that support social causes to improve community well- being and protect the environment e.g. community trade, environmental friendly process
  25. 25. Socially responsible business practices The Body Shop Example
  26. 26. Jakarta CMO Club Wednesday, 26th March 2008 Corporate Social Responsibility (CSR) What is CSR? What are the costs of not having CSR? What are the benefits of CSR? What are the types of CSR? How to decide what CSR to engage in and how much is enough?
  27. 27. Future Leaders Series: Corporate Social Responsibility W.O.W! Take Good Care of the Environment and Peace and Fulfilment of Humankind's Potential the Community; The Community and the Environment will take good care of you 1
  28. 28. Talk given to the Nanyang Fellows, Nanyang Business School, Nanyang Technological University by Pak Kuntoro Mangkusubroto 2005
  29. 29. Philip Kotler Hermawan Kartajaya Hooi Den Huan SC Johnson Distinguished Professor President Vice-Dean (Corporate Services) of International Marketing World Marketing Association Nanyang Business School Kellogg School of Management President Nanyang Technological University MarkPlus Inc Northwestern University International Advisor, SBM, ITB

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