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Six Social Initiatives for Doing Well by Doing Good Marketing Management Group 2 Wasana Athapaththu S. Shaseederan Ashok Sivakumaran 1
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Corporate Social Responsibility

Jun 20, 2015

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Corporate social responsibility. Case study of Star Bucks, Target and Johnson and Johnson.
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Page 1: Corporate Social Responsibility

1

Six Social Initiativesfor Doing Well by Doing Good

Marketing Management

Group 2

Wasana AthapaththuS. Shaseederan

Ashok Sivakumaran

Page 2: Corporate Social Responsibility

2

Dr. Kajendra

&

All of you who are present here !

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Presentation Contents…• Corporate Social Responsibility

• Introduction to Social Initiatives & its components

• 3 Case ExamplesStarbucksTargetJohnson & Johnson

• Conclusion

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What is Corporate Social Responsibility?

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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

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Our Definition…A voluntary initiative on the part of business to contribute to a better society and a greener and cleaner environment.

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Economic Responsibility

Legal Responsibility

Social Responsibility

Ethical Responsibility

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Myths surrounding

CSR

CSR is not for small businesses

It’s too complicated & technical

It’s too expensiveIt’s a market

gimmick

It’s a separate corporate initiative

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Culture as a norm CSR as a group concept

Synchronisation of CSR with company business strategy

CSR as a Corporate Culture

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Benefits of CSR

Winning new businesses

Enhanced relationship

with stakeholders

Attracting, retaining &

maintaining a happy

workforceMedia

interest & good

reputationAccess to funding

opportunities

Enhancing influence in the industry

Differentiating from

competitors

Saving money on energy &

operating cost

Increase in customer retention

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CSR Projects for Businesses

Market focused initiatives

Product focused initiatives

Employee focused initiatives

Environmental focused initiatives

Video: Approximately 6 minuteshttp://www.youtube.com/watch?v=yzvy5IgqTvw

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Presentation Covers…• Corporate Social Responsibility

• Introduction to Social Initiatives & its components

• 3 Case ExamplesStarbucksTargetJohnson & Johnson

• Conclusion

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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.

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Six Components

Marketing-Driven Initiatives

Cause Promotion

Cause-Related Marketing

Corporate Social Marketing

Corporate-Driven Initiatives

Corporate Philanthropy

Workforce Voluntary

Socially Responsible

Business Practices

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Six ComponentsMarketing-

Driven Initiatives Cause Promotio

n

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

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Six ComponentsMarketing-

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.

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Six ComponentsMarketing-

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

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Six ComponentsMarketing-

Driven Initiatives

Cause Promotion

Cause-Related

Marketing

Corporate Social

Marketing

Corporate-Driven

Initiatives Corporate Philanthr

opy

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.

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Six ComponentsMarketing-

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.

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Six ComponentsMarketing-

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.

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Presentation Covers…• Corporate Social Responsibility

• Introduction to Social Initiatives & its components

• 3 Case ExamplesStarbucksTargetJohnson & Johnson

• Conclusion

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3 Case Examples for Further Illustration

Starbucks

Target

Johnson & Johnson

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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.

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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”.

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Marketing- Driven Initiatives1. Cause PromotionSupporting 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

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Marketing- Driven Initiatives2. Cause Related MarketingLinking monetary or in-kind donations to product sales or other consumer actionsExample:(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.”

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Marketing- Driven Initiatives3. Corporate Social MarketingSupporting behaviour change campaigns

Example: (Grounds for your garden)Introduced in 1995 Encouraging & supporting customers to change in backyard composting

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Marketing- Driven Initiatives3. 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”

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Corporate Social Initiatives4. Corporate PhilanthropyMaking 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”

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Corporate Social Initiatives4. Corporate PhilanthropyA 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

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Corporate Social Initiatives5. Workforce VolunteeringSupporting 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

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Corporate Social Initiatives5. Workforce VolunteeringIn 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.”

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Corporate Social Initiatives6. Socially Responsible Business PracticesAdapting & 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

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Corporate Social Initiatives6. Socially Responsible Business Practices

Video: (Approximately 2 minutes)http://www.youtube.com/watch?v=0PvyKfrNR18

“Starbucks leads the retail sector when it comes to LEED certification around the world.”Mahesh Ramanujam, COO, U.S. Green Building Council

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3 Case Examples for Further Illustration

Starbucks

Target

Johnson & Johnson

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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

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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.

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/corporate-responsibility/education

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Marketing- Driven Initiatives1. Cause Promotion

Example:(Book festivals)Hosting book festivals for families to increase excitement about reading.

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Marketing- Driven Initiatives2. Cause-Related MarketingExample:(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.

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Marketing- Driven Initiatives2. Cause-Related MarketingThis 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

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Marketing- Driven Initiatives3. 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

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Corporate Social Initiatives4. 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”

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Corporate Social Initiatives5. 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

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Corporate Social Initiatives6. 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

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3 Case Examples for Further Illustration

Starbucks

Target

Johnson & Johnson

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Johnson & JohnsonJohnson & 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

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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”

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Recognition

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

A Strategic Focus on the “Nurse Recruitment &

Retention”

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1. Cause PromotionSupporting a social cause through promotions, awareness, fund raising and volunteering

• Television spotsDepicting 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 materialShowing 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

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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 ElementsFacebook users have free access to notes and other exclusive contents of nursing once they have liked the nursing fan page

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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)

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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

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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 includedTips to de stressEncouraged breaksTaking 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

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4. Corporate Philanthropy

Contributing directly to charity

Supporting fund raising events for nursing scholarships, faculty fellowship, nursing school grants and development of nursing educationE 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

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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”

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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

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Conclusion

In conclusion of Johnson and Johnson:

The Campaign for nursing future

Video ( approximately 3 minutes)http://youtu.be/cy1GRSCvVz0

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Presentation Covers…• Corporate Social Responsibility

• Introduction to Social Initiatives & its components

• 3 Case ExamplesStarbucksTargetJohnson & Johnson

• Conclusion

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Summary

The Corporate Social Responsibility umbrella consist of the below mentioned

Market driven

• Cause PromotionCause marketing, cause advertising, cause sponsorship and co branding

• Cause related marketingCause marketing and co branding

• Corporate social marketingIt can be considered as an integral part of cause marketing

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Summary

Corporate driven

• Corporate philanthropyCorporate giving, community giving, community development, community involvement, corporate social investments and community outreach

• Community volunteeringCommunity service, community partnerships, corporate citizenship programs

• Social responsibility and business practicesCorporate citizenship, corporate commitment

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SummaryBased 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

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Presentation Covers…• Corporate Social Responsibility

• Introduction to Social Initiatives & its components

• 3 Case ExamplesStarbucksTargetJohnson & Johnson

• Conclusion

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