Gaining sustainable competitive advantages through CSR engagement and communication A case study of Starbucks Tine Grarup January 27 th 2012 Corporate Communica7on Exam MARSTER of ARTS in CORPRATE COMMUNICATION
Gaining sustainable competitive advantages through CSR engagement and communication A case study of Starbucks
Tine Grarup
January 27th 2012
Corporate Communica7on Exam MARSTER of ARTS in CORPRATE COMMUNICATION
Agenda The Findings
CSR Cri/cism
Gaps in the corporate brand Starbucks: Green or Greenwashing?
Ques/ons and Comments
Why have a Unified Corporate Brand?
Transparency
How to overcome CSR Challenges
The Findings • CSR: a valuable and central element of corporate strategy
• First mover advantage ▫ Capitaliza7on on compe77ve asymmetries ▫ Mission central, corpora7on-‐specific and stakeholder visible CSR engagement
• Stakeholder management and communica7on ▫ Reputa7onal benefits ▫ Behavioral commitment
• Unique corporate brand -‐> sustainable compe77ve advantage
CSR Criticism
• CSR is misused as a marke7ng ploy ▫ Is Greenwashing now CSR washing?
• Abuse of power through CSR
• CSR favors the interest of business over the righVul concerns, demands and expecta7ons of wider society
• Are companies using CSR to hide unsavory business ac7vi7es?
“There is one and only one social responsibility of business – to use its resources and engage in ac7vi7es designed to increase its profits” Friedman, 1970
Gaps in the Corporate Brand Starbucks: Green or Greenwashed?
Vision
Image
Culture
Ø Stakeholder awareness
Ø Effec/ve communica/on of vision
Why have a Unified Corporate Brand?
• To integrate the corpora7on’s stakeholders
• Internal commitment and iden7fica7on with the CSR agenda • Give customers a sense of community – brand iden7fica7on allows for premium pricing
• Corporate brands create common grounds
• No ma[er the product, the corporate logo will aspire corporate values
CSR scandals
Ø Nike accused for using sweatshops (1990’s )
Ø BP’s oil spill in the Gulf of Mexico (2010)
Ø MaOel using lead poisoning paint in their toys (2007)
Transparency
Ques/oning Transparency…
• The double-‐sided nature of transparency • Are stakeholders really interested in more informa7on? • Corpora7ons are (re)defining boundaries of transparency
• Is transparency simply a simula7on of openness?
• Transparency – now a tool of power
“You cannot stop people talking about you, but you can show a willingness to be open an honest”
How to overcome CSR Challenges
Is it socially responsible to influence behavior?
• Corpora7ons take advantage of consumer trends and a_tudes.
However…
• Consumers want to be a part of the solu7on not the problem.
The corporate idenCty is not worth much without a favorable image
Think twice Be aware of context
Tell a true story
Keep CSR central