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CSR
CORPORATE SOCIAL RESPONSIBILITY
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Teach India Campaign of Times of India
Birla Group leprosy campaign
J&J employee welfare campaign
ITC and HUL rural welfare campaigns
Tatas all round community campaigns
Cadbury environment and Education
campaigns
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What is CSR?
Also known as:
Corporate Responsibility
Responsible BusinessSustainable Responsible Business
Corporate Social Performance.
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CSR
Its all about Good Corporate Citizenship
Doing well.
Giving back something to the society in returnof what you make out of it. J N Tata
Corporate (organisation)Social (community business or non business)
Responsibility (duty)
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CSR Strategy
Corporates expected to do well bottomline
Support social issues:1. Philanthropy (Birla Temples)
2. More than philanthropy today a
philosophy, and business strategy3. Practice with internal support, and passion
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Commitment by business to behave ethically andcontribute to economic development, improvingquality of life of employees, community and
society at large. CSR emphasizes obligation and accountability to
society
Part to of the companys mission and vision
Encompasses the economic, legal, ethical anddiscretionary (philanthropic) expectation thatsociety has of organisations today.
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Case for doing some good
Corporate Social Responsibility is a
commitment to improve the community well
being through discretionary business practicesand contributing of corporate resources.
Corporate social initiatives are major activities
undertaken by corporates to support social
causes and fulfill commitments to the society.
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Trends:
Increased giving
Increased reportingEstablishing of a Corporate Social Norm to do
good (brand it)
Shift:
From obligation to strategy!
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Why CSR?
Customers and Investors expectation to
behave responsibly
Consumer awareness about green and ethicalconsumerism
Legislation on sustainability, codes of practices
Globalisation and adoption of best practicesfor consumer and legal acceptance
ADDS VALUE
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Why CSR?
Enhanced image and reputation, and clout
Increased sales and market share
Strengthened brand positioning
Ability to attract, retain and motivate
employees. And customers
Increased appeal to investors and financialanalysts
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Challenges in doing good
Choosing a social issue
Supporting and helping image and business
goals
How important is the issue, government, andindustry
How exclusive it will be for us
How it will give us Publicity in our addressing theissue
Mileage. Visibility
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Developing and Implementing the
Programme Plan
Budget/Monetary resources
People Corporate Communications
Department and others Justification of expense. Benefit (ROI)
Exit strategy (if required to)
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Admin and Reporting CSR
CSR projects/campaign may be administered via:
Special section or department
PR department
HR department
Directly CEO and/or Board of Directors
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Options for Doing Good
Cause Promotion sponsorship ofprogrammes
Corporate Social Marketing sustainability,
development and implementation
Corporate philanthropy charity, donations,grants in cash or kind
Community volunteers employees andothers
Corporate practices and interests -- internal
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Infosys,Wipro, Tatas
Stan Chart and TCS Marathon on the 16th
AIDS, Drunken Driving, Condoms (BalbirPasha)
Disaster relief earthquake, floods,
epidemics like Swine Flu
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Increasing awareness and concern for
Social Cause
Persuasive communication. Image building
Creating awareness and concern
Persuading people to donate time, money andnon-monetary resources
Persuading people to participate and support
the social cause and events Educating people to work things for
themselves
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Corporate Benefits
Strengthens Brand Positioning
Builds traffic and customer loyalty
Creates brand preference among and in target markets
Provides customers ways to contribute and participatein the cause/s
Provides employees opportunities to be involved insomething they care about
Create partnership and bonds with people and markets Strengthens corporate image and reputation good
corporate citizen
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Corporate Benefits
Good to do business with!
Good to work in!
Good to invest in!
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Potential Concerns in CSR Programmes
Visibility for Corporate (gets lost?)
Takes away the focus from core business.
Sustainability of the programme and promotion
Tracking ROI difficult
Getting swamped with requests for contributions
Time and involvement fatigue and loss of
interest Replicating of promotion by others and removing
competitive advantage
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May appear cosmetic, without genuine social
benefit Business not equipped to handle social
activities
Limits the ability to compete
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Key to Success
Developing partnerships
Incorporating and emerging visibility (image)
of corporate brand Working out a way to measure and track
results and impact
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Key to Success
Selecting an engaging and relevant issue
Aligning with corporate mission and businessobjectives (internal and external)
Motivating employees and their making a realdifference
Whole hearted commitment at all levels. Avoidpromises you cant fulfill (not a marketing exercise)
Develop programme goals and tangible outcomes
demonstrable Ensure key stakeholders are aware, engaged and
involved
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When to consider CSR?
When company has easy access to the targetmarkets
When cause or issue can be connected and
sustained by company and its brands When the opportunity exists to contribute
underutilized in-kind services
When employee involvement will support the
cause and motivate employees When there is co-branding opportunity and
impacts the target group/markets
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Developing a CSR Campaign
Conduct a situation analysis
Select and define the target audience
Select and finalise the project/issue
Set the objectives and behavioural change
required (quanti and quali terms)
Determine barriers and motivations tobehavioural change in the target markets
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Develop a complete implementation plan with
a marketing mix (4 Ps)
Assign responsibilities among employees targets/kras
Develop a plan for monitoring, feedback and
evaluation
Find funding resources and fix budgets
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Developing Employee Volunteering
and Contribution Plan
Develop guidelines for involvement
Determine type and level of support -- and
time Develop a plan for training and assesment
Develop an internal communications plan
Develop a recognition (reward) plan
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Best Practices for a CSR ProgrammePhilip Kotlar and Nancy Lee
Choosing Social Issues to Support
Choose only a few social issues to support
Choose those that are of concern in communities whereyou do business, if possible
Choose issues that have synergy with your mission, values,products and services
Choose issues that have potential to help your businessgoals: marketing, increased productivity, cost reductions
Choose issues that are of concern to your key consituent
groups: employees, customers, investors, corporate leadersand government
Choose issues that can be supported over a long term
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Selecting Initiatives to Support Social Issues
Select initiatives that best meet business objectivesand goals
Select initiatives that meet priority needs for the cause
Select multiple initiatives for a single cause, addingones missing for current cause efforts
Select initiatives representing most potential for strong
community partners Select initiatives where you have a history of
experience, and will leverage current resources
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Developing and Implementing Programme Plans
Form internal, cross functional teams to developplans
Include community partners in plan development
Establish clear objectives and measurable goals(outcomes) for the company
Establish clear objectives and goals for the cause
Develop a communications plan Identify and plan for additional strategic inputs
Get top management buy-in
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Evaluating Efforts
Determine and fix purpose and process of feedback andevaluation
Monitor and measure report resource outputs
Measure and report outcomes for the company based oninitiative objectives and goal
Measure and report outcomes for the cause, based on theinitiative objectives and goals
Monitor status of social issues that the initiatives are
supporting Allocate adequate resources for measurement and
reporting including people and timing
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These guidelines must be developed and
undated appropriately in the short and long
term.
As always, executive management approval
and enthusiasm for these will be critical to
their usefulness. The ultimate scenario would
be that they actually own the guidelines andembody a passion for doing the most good.
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Readings/Examples
IDEA Case study
Drunken Driving case
Economic Times Awards this year.
end