A study was carried on by Reputation Institute (RI) in 170,000 companies from 15 countries to find out how customers perceive governance of the companies from whom they buy brands and services. It was found that consumers prefer companies who work towards achievement of a social cause. Also, how companies treat their employees matters consumers’ impression about a company. RI is a global business consulting firm that helps big organizations to build their credibility with their people force. The result of the study was that the world watches organizations closely on their CSR theme. People are concerned whether organizations think of CSR as just a giveaway, or are they really concerned. Consumers watch organizations closely whether they treat their employees respectfully, how ethical they are in operations, and whether the company respects the ecosystem. Consumers prefer companies marketing brand with a cause.
Businesses have to handle societal changes by recognizing its magnitude in effect of its responsibilities for the future of civilization. Businesses do not exist in vacuum. Social responsibility has become increasingly important for companies over the last several years. Whether it is by empowering women, serving the environment, trying to end poverty, towards the cause of education, towards improving healthcare facilities etc. We are seeing more and more companies incorporating social responsibility into their overall business strategy. The social issues may be local, national, or global, but a concern for the health and wellness of others in society cannot be ignored.
For aligning the cause of the CSR, organizations need to match their brand with a cause. A strong alignment between organizational brand’s goals and the cause it wishes to support is very critical to the success of its CSR initiative. If the match is poor, the CSR programme ends up confusing consumers and it makes them feel disconnected. It sometimes even results into the brand’s values slowly falling off the radar. If companies want to look at how to get good value from investing in CSR they should look at aligning it with their brand.
A strong brand offers many different business benefits ranging from the ease of acquiring good talent at reasonable costs and often earning customer loyalty in enhancing their business. All these benefits translate into improving the brand equity. The Coca-Cola Company’s global commitment is to enable the economic empowerment of 5 million women entrepreneurs across the company’s value chain by 2020. It has given facelift to brand Coca-Cola.
An easy way to ensure that CSR matches the company’s vision is to check if there is a logical tie between operations of business and the cause. For instance, Lifebuoy soap and hand wash aims to improve health through better hygiene. This daily use product helps prevent disease and improve people’s health and well-being; ultimately, helping to save lives. HUL’s this product enjoys a robust market share. In another example, two divisions of ITC namely foods and greeting, gifting and stationery work with a strong CSR message. On purchase of Aashirwad, Sunfeast or Kitchens of India products, consumers invariably support issues such as water conservation and tree plantation. How does this happen? A percentage of the sales proceeds get channelized into these areas. Similarly, the sale of ITCs Expressions Greeting Cards helps the cause of SOS Villages that look after orphan children in India. Again, on the purchase of ITC’s Classmate notebooks, Re 1 is donated for the cause of rural development and children’s education.
P&G has been championing the cause of gender equality both inside and outside the company. P&G will expand its supplier development and sourcing from women owned businesses across the world. This imitative of P&G has given boost to millions of women in world. In India, P&G hires 50% women into entry level management roles and they get promoted in their next assessments at the same progression as men. P&G was the also the first consumer goods company with a license to employ women in Kingdom of Saudi Arabia. It employs 15% women managers in KSA across all commercial divisions including HR, Finance, Operations and IT.
Engage employees in CSR: Global consumers expect companies to do more than make a profit, but also operate responsibly to address social and environmental issues. For developing an authentic CSR programme it is important for organizations to engage their employees in the formation of ideas process. This is helpful in boosting employee engagement and thus helping retention. Some employees at American Express Corporation initiated CSR with the issue of restoration of Statue of Liberty. American Express is known for their smart marketing ideas.
Connect with consumers: Consumers like companies that make the world a better place. Today’s millennials (generation Y) are 66 percent more likely to buy from a company that not just sells a quality product but also gives back to society. Companies use social media platforms to create awareness for an effective cause and for attracting donations. It’s been observed when companies are not honest to their cause and not regular in their efforts, consumers overlook their products.
Partner with other organizations: Partnering with organizations for the CSR cause enhances the achievements of organizations especially when CSR is aligned with the brand’s vision and goals. It is the fastest way to generate more results and goodwill. However, it requires a clear intent and budget in mind to make it work. The process of choosing an NGO partner typically involves a screening process. This includes a credibility test, a field visit, and background checks. It also requires regular assessment from the NGO.
Gradually, organizations all over world are aligning their brand to a worthy cause.
