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Corporate Social Responsibility
- 1. Six Social Initiatives for Doing Well by Doing Good Marketing Management Group 2 Wasana Athapaththu S. Shaseederan Ashok Sivakumaran 1
- 2. 2 Dr. Kajendra & All of you who are present here !
- 3. 3 Presentation Contents… • Corporate Social Responsibility • Introduction to Social Initiatives & its components • 3 Case Examples Starbucks Target Johnson & Johnson • Conclusion
- 4. 4 What is Corporate Social Responsibility?
- 5. 5 What is Corporate Social Responsibility? “Corporate Social Responsibility is the continuing commitment by businesses to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as the local community and society at large” - World Business Council for Sustainable Development
- 6. Our Definition… A voluntary initiative on the part of business to contribute to a better society and a greener and cleaner environment. 6
- 7. 7
- 8. 8 Ethical Responsibility Social Responsibility Legal Responsibility Economic Responsibility
- 9. 9 Myths surrounding CSR It’s too complicated & technical CSR is not for small businesses It’s too expensive It’s a market gimmick It’s a separate corporate initiative
- 10. 10 Culture as a norm CSR as a group concept Synchronisation of CSR with company business strategy CSR as a Corporate Culture
- 11. 11 Winning new businesses Enhanced Benefits of CSR relationship with stakeholders Attracting, retaining & maintaining a happy workforce Media interest & good reputation Access to funding opportunities Increase in customer retention Saving money on energy & operating Differentiating from competitors Enhancing influence in the industry cost
- 12. 12 CSR Projects for Businesses Market focused initiatives Product focused initiatives Employee focused initiatives Environmental focused initiatives Video: Approximately 6 minutes http://www.youtube.com/watch?v=yzvy5IgqTvw
- 13. 13 Presentation Covers… • Corporate Social Responsibility • Introduction to Social Initiatives & its components • 3 Case Examples Starbucks Target Johnson & Johnson • Conclusion
- 14. Introduction Social initiative is a strategic plan of action born from beyond the call of duty, realized through passion, diligence and a genuine concern for the enrichment of communities and the common good. Social Initiatives are proven vehicles for driving change which have blackened the pages of history for centuries. Unlike its cousin, the mass protest, the social initiative commands thoughtful leadership from a coalition of revered institutions and experienced professionals with governance by an executive Board of Directors. By the same token, it is a process by which great care, patience and strategy must be employed, giving way to revolution through evolution. 14
- 15. Six Components Marketing-Driven Initiatives Cause Promotion Cause-Related Marketing Corporate Social Marketing Corporate-Driven Initiatives Corporate Philanthropy Workforce Voluntary Socially Responsible Business Practices 15
- 16. 16 Six Components Marketing-Driven Initiatives Cause Promotion Cause-Related Marketing Corporate Social Marketing Corporate-Driven Initiatives Corporate Philanthropy Workforce Voluntary Socially Responsible Business Practices Cause Promotion A corporation provides funds, in kind-contributions, or other corporate resources for promotions to increase awareness and concern about a social cause or to support fundraising, participation, or volunteer recruitment for a cause. Example The Body Shop successfully promoting a ban in the European Union against the use of animals to test cosmetics
- 17. 17 Six Components Marketing-Driven Initiatives Cause Promotion Cause-Related Marketing Corporate Social Marketing Corporate-Driven Initiatives Corporate Philanthropy Workforce Voluntary Socially Responsible Business Practices Cause-Related Marketing A corporation links monetary or in-kind donations to product sales or other consumer actions designed to increase product sales & to generate financial support for the charity. Example Kraft Foods donates meals to Feeding America when consumers redeem coupons to get involved online with its Huddle to Fight Hunger program.
- 18. 18 Six Components Marketing-Driven Initiatives Cause Promotion Cause-Related Marketing Corporate Social Marketing Corporate-Driven Initiatives Corporate Philanthropy Workforce Voluntary Socially Responsible Business Practices Corporate Social Marketing A corporation supports the development and/or implementation of a behaviour change campaign intended to improve public health, safety, the environment and community well-being. It is most distinguished by this behaviour change focus. Example Allstate encouraging teens to sign a pledge not to text and drive
- 19. 19 Six Components Marketing-Driven Initiatives Cause Promotion Cause-Related Marketing Corporate Social Marketing Corporate-Driven Initiatives Corporate Philanthropy Workforce Voluntary Socially Responsible Business Practices Corporate Philanthropy A corporation makes a direct contribution to a charity or cause, most often in the form of cash grants, donations or in-kind services. Traditional method. More corporations are now experiencing pressures both internally and externally, to move to a more strategic approach, choosing a focus and tying philanthropic activities to the company’s business goals and objectives.
- 20. 20 Six Components Marketing-Driven Initiatives Cause Promotion Cause-Related Marketing Corporate Social Marketing Corporate-Driven Initiatives Corporate Philanthropy Workforce Voluntary Socially Responsible Business Practices Workforce Voluntary A corporation supports and encourages employees, retail partners and franchise members to volunteer at local community organisations and causes. Example AT&T working with the American Red Cross to supply phones for disaster relief efforts.
- 21. 21 Six Components Marketing-Driven Initiatives Cause Promotion Cause-Related Marketing Corporate Social Marketing Corporate-Driven Initiatives Corporate Philanthropy Workforce Voluntary Socially Responsible Business Practices Socially Responsible Business Practices A corporation adapts and conducts discretionary business practices and investments that support social causes to improve community well-being and protect the environment. Example DuPont deciding to slash energy use and green house gas emissions.
- 22. 22 Presentation Covers… • Corporate Social Responsibility • Introduction to Social Initiatives & its components • 3 Case Examples Starbucks Target Johnson & Johnson • Conclusion
- 23. 3 Case Examples for Further Illustration 23 Starbucks Target Johnson & Johnson
- 24. 24 Starbucks Starbucks Corporation is an American global coffee company and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 23,187 stores in 64 countries, including 12,973 in the United States, 1,897 in China, 1,550 in Canada, 1,088 in Japan and 927 in the United Kingdom.
- 25. A Strategic Focus on the “Environment” In 2008, a bold move to establish a set of ambitious global responsibility goals that would have the greatest impact on : • Environment • Ethical sourcing • Environmental stewardship • Community involvement “We have always believed Starbucks can – and should — have a positive impact on the communities we serve. One person, one cup and one neighborhood at a time”. 25
- 26. 26 Marketing- Driven Initiatives 1. Cause Promotion Supporting social causes through promotional sponsorships Example:(Cup summits) Encouraging the food industry to serve beverages in either reusable or recyclable containers. “BY 2015, 100% of our beverages will be served in cups that are either reusable or recyclable” Video: (Approximately 2 minutes) http://www.starbucks.com/responsibility/environment
- 27. 27 Marketing- Driven Initiatives 2. Cause Related Marketing Linking monetary or in-kind donations to product sales or other consumer actions Example:(Ethos water fund) Making a contribution to water projects around the world with every purchase of Ethos Water at a Starbucks store “Every time you buy a bottle of Ethos® Water, you contribute $.05US ($.10CN in Canada) to the Ethos® Water Fund, part of the Starbucks Foundation. So far more than $7.38 million has been granted to help support water, sanitation and hygiene education programs in water-stressed countries – benefiting more than 430,000 people around the world.”
- 28. 28 Marketing- Driven Initiatives 3. Corporate Social Marketing Supporting behaviour change campaigns Example: (Grounds for your garden) Introduced in 1995 Encouraging & supporting customers to change in backyard composting
- 29. 29 Marketing- Driven Initiatives 3. Corporate Social Marketing “Complimentary £5 bags of used coffee grounds to enrich garden soil” “10% discounts to encourage customers to use their own reusable mugs & tumblers”
- 30. 30 Corporate Social Initiatives 4. Corporate Philanthropy Making direct contribution to a charity or cause Example:(Environmental education for youth in Malaysia) Providing grants for environmental education of youth. “In 2010, a total of $22.4 million with $10.3 million in cash & $6.7 million in-kind contributions were made towards community building programs”
- 31. 31 Corporate Social Initiatives 4. Corporate Philanthropy A major grant recipient was the Children’s Environmental Heritage Foundation in KL, Malaysia for a program called “Instill a love of and care for the environment in young people” Video: (Approximately 3 minutes) http://www.starbucks.com/responsibility/community/youth-action/grant
- 32. 32 Corporate Social Initiatives 5. Workforce Volunteering Supporting employees to volunteer in the community Example:(Building a Green Neighborhood in Minhang, China) Organizing opportunities for employees to participate in community projects that enhance the environment
- 33. 33 Corporate Social Initiatives 5. Workforce Volunteering In 2011 Starbucks brought together 750 Beijing employees with their families, customers, and local college students in Shanghai, China to build a ‘GREEN’ neighborhood. Participants dedicated their time and energy working on a range of activities around Starbucks China’s ‘GREEN’ community service model, which comprises ‘Gardening,’ ‘Rubbish Management,’ ‘Eco-Class,’ ‘Energy and Water Saving’ and ‘Neighborhood Caring.”
- 34. 34 Corporate Social Initiatives 6. Socially Responsible Business Practices Adapting & conducting discretionary business practices & investments that support social causes Example:(Green buildings) Committed that all new company-owned stores would be built to achieve the Leadership in Energy and Environment Design (LEED) certification given by the U.S Green Building Council’s Their first LEED certified store was opened in 2005 in Hillsboro, Oregon. Since then they have continued to do this and currently they have extended it to 373 stores in over 18 countries
- 35. 35 Corporate Social Initiatives 6. Socially Responsible Business Practices Video: (Approximately 2 minutes) “Starbucks leads the retail sector when it comes to LEED certification around the world.” Mahesh Ramanujam, COO, U.S. Green Building Council http://www.youtube.com/watch?v=0PvyKfrNR18
- 36. 3 Case Examples for Further Illustration 36 Starbucks Target Johnson & Johnson
- 37. 37 Target The Target Corporation is an American retailing company, founded in 1902 and headquartered in Minneapolis,Minnesota. It is the second-largest discount retailer in the United States
- 38. A Strategic Focus on the “Education” Education is a longtime, top-priority social issue for Target, that it is a priority for their customers as well, as well, is no coincidence. 38 Target believes, “every child deserves the opportunity to graduate from high school & reach his/her full potential. That’s why we’re on the track to reach a total of $1 billion in education-related giving by the end of 2015.” Video: (Approximately 30 Seconds) https://corporate.target.com/corpora te-responsibility/education
- 39. 39 Marketing- Driven Initiatives 1. Cause Promotion Example:(Book festivals) Hosting book festivals for families to increase excitement about reading.
- 40. 40 Marketing- Driven Initiatives 2. Cause-Related Marketing Example:(The Redcard) Making a donations to a public school of choice based on purchases using a Target Credit Card (REDcard) Donates 1% of all target credit card purchases made at a target store or target.com Donates 0.5% of purchases made outside target as well.
- 41. 41 Marketing- Driven Initiatives 2. Cause-Related Marketing This has been a life changer for an Eight year old student who couldn’t read and felt labeled as “the dumb one” Since 2011 they have donated $ 298mn to K- 12 schools and well on course to achieve their goal of $425 mn by 2015
- 42. 42 Marketing- Driven Initiatives 3. Corporate Social Marketing Example:(Read Across America) Supporting a worldwide reading day where parents & children around the world read the same book. Video: (Approximately 30 Seconds) https://corporate.target.com/discover/article/building-better-readers-one-school- at-a-time
- 43. 43 Corporate Social Initiatives 4. Corporate Philanthropy Example:(Field trip Grants) Providing grants for school field trips to museums, cultural events and civic experience and historical sites. “Since 2007 they have provided 1.6mn students the opportunity to take 17,400 field trips & enabled 1 in 25 schools throughout the US to send a classroom on a field trip”
- 44. 44 Corporate Social Initiatives 5. Workforce Volunteering Example:(School library makeovers) Contributing employee time & talent to complete library makeovers Through the program they have transformed a total of 118 school libraries. A typical makeover costs around $200,000 including the infrastructure and new books. Video: (Approximately 30 Secs) https://corporate.target.com/corporate-responsibility/education/schools
- 45. 45 Corporate Social Initiatives 6. Socially Responsible Business Practices Example:(MBAs for employees) The employees get benefitted through this program by getting a reimbursement of $5,250 per year tuition fees for MBA courses They are been ranked 8th out of 69 companies for being the best place to launch a career
- 46. 3 Case Examples for Further Illustration 46 Starbucks Target Johnson & Johnson
- 47. 47 Johnson & Johnson Johnson & Johnson is an American multinational medical devices, pharmaceutical and consumer packaged goods manufacturer founded in 1886. They embrace research and science to develop innovative ideas, products and services to improve the healthcare and well-being of society. Johnson and Johnson is, • The worlds sixth largest consumer health care company • The worlds fifth largest biologics company • The worlds eighth largest pharmaceuticals company • The worlds largest and most diverse medical devises and diagnostics company
- 48. 48 Johnson and Johnson launched the Nursing Campaign in 2002 The Campaign provides a positive image about nursing It believes in a half a million nurses shortage which will arise in 2025 which will be filled in using the Campaign The main motive of the Campaign is to drive people in obtaining a nursing career www. Discover nursing. com is the platform used for sharing information regarding • Organizations • Schools • Hospitals • Health groups A Strategic Focus on the “Nurse Recruitment & Retention”
- 49. 49 “Nurse Recruitment & Retention” Recognition A Strategic Focus on the Corporate leadership award for demonstrating a deep commitment to innovative initiatives that empower employees and communities in 2004 Was awarded the “Presidents award for transforming the image of nursing” by National League for nursing (NLM) in 2010 Video (approximately 3 minutes) http://youtu.be/2PVeOq60GcA
- 50. 50 1. Cause Promotion Supporting a social cause through promotions, awareness, fund raising and volunteering • Television spots Depicting the emotional and medical roles played by nurses in advocating “ Nurses Heal” • Videos “A day in a nurses life” promoting a emergency room nurse’s working day • Recruitment material Showing the future of nurses by issuing brochures of careers of being a different type of nurse. E g. Public health nurse, visiting nurse, school nurse, nurse educator and etc
- 51. 51 1. Cause Promotion • Online education Information for migrant nurses, refresher courses, events, educational resources have been posed online for any personnel will a desire to become a nurse to access • Other promotional material “ Nurses save our life” car stickers and “ Be a nurse” t shirts for nursing students • Social Media Elements Facebook users have free access to notes and other exclusive contents of nursing once they have liked the nursing fan page
- 52. 52 2. Cause related marketing Allocating a percentage of revenues for a specific cause based on sales or consumer behavior “The Art of Nursing: Portrait of thanks Mosaic Project” August 2011 to February 2012 Donating one dollar for every photo uploaded to the website with regarding to nursing scholarship fund (Foundation of the National Students Nurses Association)
- 53. 53 2. Cause related marketing Photo should be from a social event, on the job, family outing with regard to the nursing profession. Visit http://www.discovernursing.com All images uploaded are put in together to create a mosaic image which acts as a symbol of pride for all nurses around the world. The project obtained 7600 photos by the end of 21 February 2012
- 54. 54 3. Corporate Social Marketing Supporting behavior changing campaigns Stress management has been a growing issue within nurses when it came to turbulent times. It has become essential for nurses to understand the importance of stress management in providing a superior service to patients “Happy Nurse”, a free mobile app was launched to help nurses manage stress included Tips to de stress Encouraged breaks Taking care of your own self http://www.discovernursing.com/happynursegame#.U7j86lbGDC8 Online education programs such as ‘“ From Distress” to “De-Stress” with stress management’ http://www.discovernursing.com/resources/online-resources# category=nursing-the-basics
- 55. 55 4. Corporate Philanthropy Contributing directly to charity Supporting fund raising events for nursing scholarships, faculty fellowship, nursing school grants and development of nursing education E g Promise of nursing regional gala since 2002 Funded workshops for post trauma stress disorder and natural disaster information at the Mississippi Gulf Coastal area which was affected by Hurricane Katrina
- 56. 56 5. Community Volunteering Voluntary services to the community • Volunteering at school career day speeches • Mentoring new nurses • Communicating with elected officials for fund raising for nursing schools “ Nursing students are influenced by other nurses to pursue a career in nursing”
- 57. 57 6. Socially responsible business practices Driving business practices and investments to support a social cause J&J ongoing attitudinal survey to obtain information and evaluate services provided by healthcare partners The results of the above surveys are high rates in • Job satisfaction • Ability of nurses to maintain patient safety • Staff communication • Networking with other teams
- 58. 58 Conclusion In conclusion of Johnson and Johnson: The Campaign for nursing future Video ( approximately 3 minutes) http://youtu.be/cy1GRSCvVz0
- 59. 59 Presentation Covers… • Corporate Social Responsibility • Introduction to Social Initiatives & its components • 3 Case Examples Starbucks Target Johnson & Johnson • Conclusion
- 60. 60 Summary The Corporate Social Responsibility umbrella consist of the below mentioned Market driven • Cause Promotion Cause marketing, cause advertising, cause sponsorship and co branding • Cause related marketing Cause marketing and co branding • Corporate social marketing It can be considered as an integral part of cause marketing
- 61. 61 Summary Corporate driven • Corporate philanthropy Corporate giving, community giving, community development, community involvement, corporate social investments and community outreach • Community volunteering Community service, community partnerships, corporate citizenship programs • Social responsibility and business practices Corporate citizenship, corporate commitment
- 62. 62 Summary Based on the three cases we discussed today Starbucks A corporate theme for social responsibility can be expressed using all the six initiatives as discussed Target It is more common for a corporation to have several themes Johnson and Johnson One campaign can integrate all six initiatives
- 63. 63 Presentation Covers… • Corporate Social Responsibility • Introduction to Social Initiatives & its components • 3 Case Examples Starbucks Target Johnson & Johnson • Conclusion
- 64. 64