Assignment CSR and Marketing Approaches

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Corporate Social Responsibility------MaazRashid-----Prof.Razaullah
Assignment
“Corporate Social Responsibility and Marketing
Approaches/Strategies”
1- CSR and Strategies to integrating CSR with Marketing----------------2
 Three Approaches to integrating CSR with marketing
 CSR and Marketing Approaches/ Strategies prospects
2- CSR and Marketing Approaches/Strategies according to Case studies------5
 Four Social Philosophies and Corporate Social Responsibility~ Approaches and
Issues for Companies:
 Four Case Studies on Corporate Social Responsibility: Do Conflicts Affect A
Company’s Corporate Social Responsibility Policy?
 Why Every Company Needs a CSR Strategy and How to Build It
Organizing for CSR Strategy Development
 Must Milton Friedman Embrace Stakeholder Theory?
Assignment Prepared by: Maaz Rashid 03459113521
Assignment Submitted to: Respectable Prof.Razaullah

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1- CSR and Strategies to integrating CSR with Marketing
Corporate Social Responsibility means that as charitable giving/contribution,strategic
philanthropy, community involvement, or cause related marketing.
Corporate social responsibility involves doing business in a responsible way
that delivers value not only to the organization, but also to its stakeholders and the
community within which it operates.
Corporate social responsibility covers five 5 areas.
1- Environment
2- Community
3- Employee welfare
4- Financial performance
5- Corporate governance
Three Approaches to integrating CSR with marketing
That’s may be difficult for company to make control on positioning of brand and
CSR strategies.
The only way for a company to achieve such positioning of brand and CSR
strategies, needs to bring their CSR and Marketing departments together to define
approaches.
 The Integrated Approach
 The Selective Approach
 The Invisible Approach
The Integrated Approach
In this approach, the brand and CSR operates in a same manner. That’s
applicable when market study/investigation shows responsible business practices to
be a key driver of brand preference.
The core strength of this approach is that companies with the right business
model can show a unified convincing level across all touchpoints (Buyer & Seller
contacting point). It means that a consistent performance across environment,
community, employee welfare, financial performance and corporate governance
commitments.
The company promise is all about sustainability, business brand CSR strategy
are directly linked. CSR strategy sets the standards for the products, it carries, the
way they sold, the way it treats its employees.

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Company employees known as team membersare encouraged to participate in
charitable activities in operation time. The result of this integrated strategy are proof
to be success and with double-digits growth rates over periods.
The Selective Approach
The selective approach is effective either when market research shows
responsible business practices make first choice.
A core advantage of the selective approach is that it can provide an effective
means of differentiation in competitative market while shielding the parent brand from
customers/stakeholders criticism (backlash) i.e. middle class, high quality products.
The Invisible Approach
In this approach, CSR may play an important strategic or philosophical role in
guiding the company, but plays a very limited role in external communications and
initiatives.
This allows companiesto use CSR as an asset to support (bolster) trust in their
brand and company.
This option a company who have CSR initiatives become part of companies
mainstream communication differentiate from others.
A Company deeply serious about CSR in all aspects does not show it in
communications, sometimes company difficulty (critically) dependent on maintaining
customers trust, usually surrounded by rumors of child labor, unethical labor
standards and the use of dangerous materials.
A Company offers quality at reasonable price. Thus a price is a key part of its
value proposition, they doesn’t want to be seen excessive philanthropist (with Profits to
share for Charities and not for consumers).
CSR is present in marketing activities; a company gives autonomy to individual
retail to include cause-related marketing initiatives as a part of marketing mix. While
these initiatives contribute to building company image as responsible, caring
business, as short term proportions and sales drivers.
CSR and Marketing Approaches/ Strategies prospects
Above approaches demonstrate (explain),there is more than one way to create
(build) successful connection between CSR and brand building activities.
The nature of business (Category, Customers, and Competitors) provides ways
for company should promote its CSR-related activities.Similarly, company needs to be
aware of risks and benefits that effectsefforts. This requires that CSR and Marketing

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cooperate to develop a sustainable effort that brings competitive advantages. CSR
initiatives must be part of actual business practices, consistent communications and
experienced by customers.
If the companies adopt this integrated approach and put CSR on marketing
agenda, stakeholder’s expectations will be met and CSR activities will help achieve
their desired result, build successful brand and businesses.

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2- CSR and Marketing Approaches/Strategies according to Case studies
Four Social Philosophies and Corporate Social Responsibility~ Approaches and
Issues for Companies:
Corporate social responsibility involves implementing activities that meet society’s
expectations.
The question is what society expects from companies?
In this regard companies are subject to work on selection/collection of various demands
from various stakeholders (A person, group or organization that has interest or concern in an
organization).
In this regard to examine society’s essential expectations is to look at four social
philosophies that have survived historical valuation and criticism.
Utilitarianism
Utilitarianism implies, companies to maximize the overall happiness of society, also companies
satisfy the stakeholders.
But they raise issues;
- There is a risk that the interests of certain groups might be sacrificed; means it may
lead to the greater happiness of one group at the expense of another. i.e. Cost cuts.
- Second issue, to determine whether society or specific stakeholders are happier than
before, If the Government performs this role, it may intrude actively in the
company’s operations on the pretext of public welfare(they violate public
interests).If the company’s takes the role itself, it may apply Illogical principles and
its decisions may go unchallenged.
Libertarianism
Libertarianism implies, companies to maximize shareholder profits within basic legal
restrictions.
According to Milton Friedman, the role of corporate managers is to meet expectations of
shareholders (an individual, group, or organization that owns one or more shares in a
company), by whom they appoint to maximize profits through free and open competition
without optioning to fraud or dishonesty.
But they raise issues;

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-It prioritizes shareholder benefits, it may increase profits for shareholders, and it causes
economic and social losses for other stakeholders. Because shareholders have different
expectations, its level of satisfaction also differs.
-A company might try to increase its profits by taking advantage of legal loopholes.
New Liberalism
New Liberalism recognizes the right of companies to earn profits by utilizing their strengths,
but it believes that this should be conditioned on, firstly their providing equal employment
opportunities and Secondly, improving the lives of people living under poor circumstances.
New liberalism seeks Government intervention (Government role) and corporate
compliance (agreement) with additional regulations. The government thus indirectly
encourages companies to behave ethically and make social contributions.
But it is also criticized for the following reasons;
-There is no clear explanation of “people living under poor circumstances.
-A company may neglect government policies to protect its personal interests. Other
stakeholders (workers, subcontractors) interests should be given superiority over those
consumers in unfavorable and unfortunate conditions.
-New liberalism emphasizes the role of government. It means companies given
importance to government judgments. This may result in companies disregarding the
interests of their stakeholder.
Communitarianism
Communitarianism implies, companies to respect and assign to core community values
(autonomy, order, social bonds, and virtues like trust. Communitarianism focus on the interests
of the community.
It attempts to resolve the contradictory (conflicting) demands of freedom and rights.
But it arise some problems;
-Any grouping from the country of corporate registration and the region where factories
and offices are located to entities in the supply chain, investor, shareholders, and
industry group can be interpreted as constituting a “community”.
-How to determine the core community values. Whether the party in such agreement
truly represents the community. It is possible that these values may actually block
proper judgment and actions due to agreement.

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-Company may achieve close bonds among employees, gain customer loyalty, and win
the trust of local residents but some companies may take advantages of such
achievements to act in ways that betray(disloyal) the community trust.
Summary
The four philosophies often have conflicting in expectations. Utilitarianism, for example, would
demand that companies maximize happiness, while Libertarianism would seek free
competition. New Liberalism would prioritize equality and rights, while Communitarianism
would seek to balance autonomy and order. Corporate social responsibility involves fulfilling
these expectations. The challenge how to resolve conflicting demands.
This requires companies to (i) become aware of both the demands made and the issues
raised by each philosophy, (ii) to stand before the business challenges based on this awareness.
These criteria focus on demands of four philosophies makes of companies and summarizing the
issues raised by them.
Four Case Studies on Corporate Social Responsibility: Do Conflicts Affect A
Company’s Corporate Social Responsibility Policy?
In contrast, Japanese companies prefer to fixate on areas where their contributions can be
statistically quantified. Interest in gregarious aspects of CSR is significantly less pronounced
than in other industrialized countries. In Japan there are no concrete provisions regulating CSR.
However, the 1988 law that promotes categorical non-profit activities is of major paramount in
this context. Early notions of CSR on an academic level can be traced back to the 1960s. In 1991
Carroll presented CSR as a multi-layered concept that consists of four interrelated aspects:
economic, licit, ethical and philanthropic responsibilities. Carroll proposed a pyramid that
analyses the dimension of CSR.
This article provides an overview of four case studies regarding different multinationals,
namely Apple, Canon, Coca-Cola and Wal-Mart. These companies have been involved in CSR
conflicts in different areas. This article will investigate whether the conflicts have affected the
CSR policy of these multinationals and whether the companies subsequently set concrete
targets. Coca-Cola,for example, has set a target to reduce its overall carbon footprint by 15% by
2020, compared to its 2007 baseline.
How the company resolved the conflict and whether the company implemented specific CSR
policies with measurable targets as a response to the conflict.
Analysis
This article presented four case studies on the CSR policy of Apple, Canon, Coca-Cola and Wal-
Mart. These multinationals have been involved in social and environmental conflicts. he article

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researched the conflicts, the measures the companies have taken to resolve these conflicts and
their CSR policy in relation to those conflicts. The article aims to answer the question: ‘Do
conflicts affect a Company’s CSR policy?’
In general, the authors found that the four analyzed multinationals had already
implemented a basic CSR policy before experiencing the conflicts studied. Canon is the
company with the longest history of implementing what we now refer to as CSR. Canon
introduced the corporate philosophy of kyosei as part of its global corporate plan in 1988.
Another early implementer of CSR policies is Wal-Mart. Since the early 1990s Wal-Mart had
codes of conduct in place for their suppliers. Coca-Cola had taken early steps to report on the
company’s activities and adopted the GRI guidelines in 2001. Apple has made its annual
supplier responsibility progress report available on its website since 2007. Although most of the
companies’ conflicts were of a different nature and with different degrees of severity, in the
cases of Apple, Coca-Cola and Wal-Mart the issues resulted in a poor corporate reputation.
Coca-Cola’s conflict in India involved claims of water pollution and over-extraction of
groundwater as well as allegations that Coca-Cola beverages produced in that country
contained high levels of pesticide residues. The media attention that the conflict received was so
widespread that the negative effect on the corporate image was not limited to India, but they
also spread to the US. In addition, this conflict affected the company economically, with
dropping sales and revenue losses.
The conflicts experienced by Wal-Mart that were studied in this research were of a labor
nature. One of them consisted of a class action lawsuit by (former) female employees, the Dukes
v. Wal-Mart Stores case, where the plaintiffs alleged gender-based discrimination. This lawsuit
was not the first one to be experienced by Wal-Mart, which is one of the most often, sued
companies in the US. But its relevance rests in the fact that the plaintiffs were suing on behalf of
themselves and all women employed by Wal-Mart nationwide since December 1998,amounting
to approximately 1.5 million women. After a long litigation process, the US Supreme Court
concluded that the case could not be ruled in the plaintiffs’ favor because they did not have
enough in common. The second analyzed conflict experienced by Wal-Mart consisted of media
attention alleging that two of Wal-Mart’s sub-contractors in Bangladesh were using child labor.
Apple’s suppliers were also caught using underage labor. In addition, Apple is often linked to
the suicides at Foxconn. The employees work up to 70 hours a week, ten hours above the
maximum set by Apple’s Supplier Code. Also, in February 2011 he Guardian reported on
another labor issue that Apple faced: the poisoning of Wintek workers by n-hexane.
Finally, Canon had non-severe problems that related to stress-related illnesses among
employees in the company’s subsidiary in Denmark, as well as to findings that Japanese
employees were forbidden to sit down during working hours. Neither these conflicts nor any
other conflict that Canon has had ever resulted in much media attention.

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The responses of the multinationals to the conflicts varied, ranging from attempting to
repair reputation damage and denying the claims, to providing a remedy. Coca-Cola’s initial
approach consisted of denying that the accusations were true. The company was very open
about this and used the media, its website and its reports to make statements about its position
in the conflict. For instance, Coca-Cola replied to news articles and made public statements, and
it also included in both its sustainability report for India and on its website an update about the
conflict in India. These efforts, however, mainly had the purpose of re-establishing the integrity
of the company by providing evidence to prove that the accusations were untrue. But as was
illustrated in the case study, making public statements and reporting on the conflict were not
sufficient for the company to repair the reputation damage and to regain the trust of Indian
customers. In response, the company took a more proactive approach that aimed at repairing
and preventing damage to Indian water resources. Wal-Mart faced a lawsuit, which it strongly
contested and it denied the claims. The case against Wal-Mart did not succeed, but currently the
claimants have taken out another lawsuit based on individual cases per state which shows an
eminent threat. When Wal-Mart was caught using child labor it responded by reporting in its
2005 Report on Ethical Sourcing the existence of child labor in the factories of its sub-
contractors. While confirming the accusations in the media, this report also turns this
unfavorable situation into a positive one by claiming that the increase in underage violations
were due to the implementation of more stringent anti-child labor measures. The Labor issues
with the suppliers had an impact on Apple’s reputation. About 18 month’s after the media
reported on the suicides, Apple joined the FLA, striving to set a new standard in the electronics
industry and having a supply chain that can be seen as a model for the industry. Although
Canon did not have to deal with any damage to its reputation, after the stress-related illness in
Denmark had occurred, the company also took a proactive approach in preventing the
emergence of future conflicts. In its European and global Canon policies, Canon therefore
included measures to reduce stress in the workplace.
The case studies provide evidence that after the multinationals experienced a conflict,
the companies made changes to their CSR policies. A common feature of Canon,Coca-Cola and
Wal-Mart’s policy the case studies provide evidence that after the multinationals experienced a
conflict, the companies made changes to their CSR policies. A common feature of Canon, Coca-
Cola and Wal-Mart’s policy changes is the establishment of specific goals that they aim to
achieve at company level. Although Apple did not set concrete targets, it has pledged to change
its supplier responsibility practice. Furthermore, the sustainability reports in which the four
multinationals present their CSR policies are created as long-term commitments and not just to
resolve the current conflict.
Perhaps Coca-Cola can be said to be the company that adopted one of the most
ambitious CSR policies after experiencing the conflict in India. Coca-Cola appears to be strongly
determined to address its operational impacts on the environment, particularly on water. Given
the nature of the impacts, the company has the possibility of carrying out research and taking
steps towards preventing and remedying damage, with results that can be measurable. Coca-

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Cola initiated such efforts by adopting initiatives that are tailored to remedy the water problems
it caused in India and to improve its image towards its customers.
Such initiatives include research and partnerships with the Indian local government.
Subsequently, Coca-Cola adopted water management as one of the core elements of its global
CSR policy and the company has committed itself to meet quantifiable targets concerning water
management efficiency. Coca-Cola does not admit that the conflict in India is the main
motivation behind the adoption of the water policies.
However, given the severe damage to its reputation – and the consequent revenue losses
experienced – it is very likely that the conflict in India influenced the corporate decision to
implement a CSR policy on water management efficiency in its global operations.
Wal-Mart as an early implementer of CSR regulations strengthened its existing policies
after the conflicts. It now has policies to appoint women to management positions and set up a
board in charge of fighting gender discrimination. Wal-Mart has also increased the number of
audits to control child labor employment.
Negative publicity eventually resulted in Apple setting a new standard for the
electronics industry. After the FLA report on Foxconn, Apple stated that it fully supported the
recommendations of the FLA and publicly committed itself to try to change it practices. he FLA,
external stakeholders and consumers will look to see if Apple adheres to its pledge.
To conclude, the case studies of Apple, Coca-Cola and Wal-Mart illustrate that the
multinationals have adopted changes in their CSR and reporting policies after the conflicts
occurred. These companies are transparent about those conflicts by publicly addressing them
either through the media or in their annual or sustainability reports. Although Canon has not
mentioned any labor issues, internet research showed that Canon was involved in labor issues
as well. In order to uphold sustainability standards it is important for companies to be
transparent. As was presented in the research by Zwart & Tulder, companies that have been
‘on thin ice’ usually turn into frontrunners as far as CSR is concerned. Apple, Coca-Cola and
Wal-Mart have been under public Scrutiny, but nowadays they can be seen as companies which
have become models for their industry.
Coca-Cola has taken a proactive approach and implemented initiatives to solve the
water problems.
Wal-Mart strives to be the greenest corporation in the world. Apple is aiming to set a
new standard in the industry. Time will only tell whether it will stick to its promise to change
its supplier responsibility practice. Canon is different in this respect, as its CSR policy was not
impacted by media pressure. At first instance it might appear as if it is not comparable to the
other mentioned companies. However, this article shows that companies like Canon need to be
closely monitored as well.

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Why Every Company Needs a CSR Strategy and How to Build It
Organizing for CSR Strategy Development
Ideally, well-managed CSR creates social and environmental value, while supporting a
Company’s business objectives and reducing operating costs, and enhancing relationships with
Key stakeholders and customers. It is therefore imperative that corporations establish a CSR
unit whose primary responsibility is coordinating and integrating initiatives in all three theatres
in which a company is engaged in, even if responsibility for the various initiatives remains
dispersed throughout the company. This CSR unit, however, needs to be headed by a person
who has senior management rank and holds the position as his/her primary responsibility. It is
not uncommon for CSR offices to be headed by managers who split their time between CSR and
other corporate responsibilities, such as head of Human Resources or Operations. For example,
the 2011 survey of CSR managers and executives revealed that in all three CSR domains,
dedicated CSR executives spent an average of only about 35 percent of their time on managing
and administering CSR programs, with some professionals devoting less than that percentage
of their time to CSR responsibilities. The remainder of CSR professionals’ time was devoted
primarily to Human Resource functions, or for managers leading supply-chain initiatives, their
remaining hours were spent supervising and managing production lines and “sourcing
“functions. This underscores the widespread lack of commitment to the strategic aspects of
CSR.
In order to craft and implement a company-wide CSR vision, the senior manager, and
his/her staff, needs to be committed to and focused on this priority. For companies that are
engaged in a wide range of CSR initiatives in all three theatres, and which are managed by
separate business units, this is undoubtedly challenging. While the CSR officer cannot
conceivably be present at every CSR program everywhere in the company, his/her surrogate
should be a knowledgeable presence at the program including having decision rights in its
design and execution. Having the knowledge and overview of the range and depth of the
various initiatives, it should be the responsibility of the CSR office to elevate strategic CSR
topics and priorities for discussion at the company’s highest levels, and to ensure CSR is
incorporated into the appropriate operating committee discussions at the business unit level.
Devising a cohesive direction governed by a vision that expresses the company’s overarching
priorities is imperative for crafting a coordinated and effective CSR strategy.

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 Different Motivations and Measures & Developing a CSR Strategy

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Must Milton Friedman Embrace Stakeholder Theory?
Milton Friedman famously stated that the only social responsibility of business is to increase its
profits, a position now known as the shareholder model of business.
Subsequently, the stakeholder model, associated with Edward Freeman, has been widely seen as a
heuristically stronger theory of the responsibilities of the firm to the society in which it is situated.
Friedman’s position, nevertheless, has retained currency among many business thinkers. In this article,
we argue that Friedman’s economic writings assume an economy in which businesses operate under the
protections of limited liability, which allows corporations to privatize their gains while externalizing their
losses. By accepting limited liability, Friedman must also accept a view of business as embedded in social
interdependency, which serves as the logical and moral foundation for corporate social responsibility
(CSR). To achieve consistency with his economic principles, Friedman must either abandon limited
liability or modify his doctrine on CSR and his related shareholder model of business.
In this article, we argue that Friedman cannot maintain his position against corporate social responsibility
if he wants to sustain other key economic principles, on which his theories depend, most notably, the
principle of limited liability. If Friedman accepts limited liability, which must be the case given his other
views on the economy, he would have to move from the shareholder model to the stakeholder model.
This is due to the fact that limited liability is a fundamental element of the free market system that allows
corporations to “socialize” or externalize their losses while privatizing their profits. This “privilege”
constitutes a kind of tax on other people without their direct consent, which violates the voluntary nature
of the exchange. In this way, various constituencies are made the bearers of business risk and, in effect,
forced into a stakeholder relationship with the business. Limited liability reveals the contradiction that
exists between the exclusive claim on profits by a business and the potential costs associated with
business risks borne by the business’s stakeholders. By accepting limited liability, Friedman affirms a
view of the corporation as embedded in an interdependent relationship with its stakeholders. And yet, by
accepting limited liability, Friedman demonstrates that his commitment to private property and
voluntary exchange is not absolute. Moreover, as these two principles constitute the cornerstones of his
rejection of corporate social responsibility, we see an internal contradiction. By accepting limited liability,
Friedman must also accept a view of private property and voluntary exchange that are embedded in a
context
of social interdependency, and it is this interdependency that serves as the logical and moral foundation
for corporate social responsibility. To restore consistency to his economic principles, Friedman must
refuse limited liability or modify his doctrine on corporate social responsibility. Although Friedman
neither accepts nor rejects explicitly limited liability, nevertheless it is clear from his writings that limited
liability is assumed. Insofar as the acceptance of limited liability implies the stakeholders are going to
bear some of the costs, they should also reap some of the benefits. Therefore, by accepting limited
liability, Friedman has no other choice than to move from a shareholder model toward a stakeholder
model, and in so doing, integrate corporate social responsibility into the corporate ethos. This acceptance
of corporate social responsibility has nothing to do with the generation of greater profit for shareholders,
as Freeman argues, but because it follows from the logic of private property ownership and the
requirements of fairness that accompany the acceptance of risk distribution inherent in a system
involving limited liability.

Assignment CSR and Marketing Approaches

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