Corporate Social Responsibility

andCause Related

MarketingSubmitted by:Diva Samnotra (12 MBA2012) Madhur Gupta (26 MBA2012) Nikhil Gupta (32 MBA2012) Sahil Sharma (44 MBA2012) Sakshi Gupta (45 MBA2012)

INTODUCTION

Corporate Social Responsibility is the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large

- Lord Holme and Richard Watts

CORPORATE SOCIAL RESPONSIBILITY

Redefining business as ethical business.

Not mere charity.

Has different meanings for different people.

the brand image , the reputation & profitability.

The concept of CSR is not new.

WHAT IS CAUSE RELATED MARKETING?

Any marketing with a cause.

Traditional View?

Begin in 1983.

CRM and media campaigns.

Do well by doing good

CSR & CRM RELATIONSHIPCSR CRM

CSR means to go beyond

the legal requirements

and try to connect

business with society as

well as environment.

CRM is when

companies partner

with charitable

organizations to help

non-profits better

achieve their goals.

CRM & CSR are often used interchangeably and sometimes CRM is taken to be the subset of CSR.

What comes in your mind when you think of following?

All are top 10 Fortune 500 companiesAll these companies neglected their

responsibilties towards community.

• BP• Chevron• Exxon Mobil

SITUATION IN INDIA

Earlier in India not much companies were

interested in the concept of CSR & CRM.

Companies Bill 2009 and 2011 mandates

companies falling in a certain category

allocate at least 2% of profits to CSR

initiatives.

INDIAN COMPANIES

UNDERTAKING CORPORATE

SOCIAL INITIATIVES

ITC INITIATIVESITC – the first and only one of seven Indian

companies to adopt the Global Reporting

Initiative's (GRI) triple‑bottom‑line reporting on a

voluntary basis.

ITC economic and social objectives are not

different. 

Initiatives to manage natural resources.

Initiative to generate sustainable livelihoods

Initiative to generate sustainable livelihoods

CAUSE RELATED

MARKETING

PROCTER & GAMBLEWorld’s best cause marketer. P&G has been consistently taking up several cause

related marketing initiatives in every country they operate in.

SHIKSHA is an integral part of P&G's global philanthropy program.

“Padhega India, Badhega India”

TESCO COMPUTERS FOR SCHOOLSMost successful cause-related marketing

programme in the UK from both the business and the cause point of view.

“EVERY LITTLE HELPS”

IMPLICATIONS

Regardless of the type of corporate social responsibility (CSR) is appropriate to use, corporate social responsibility can be used to benefit an organization.

Corporate social responsibility proves to be an important tool to communicate an organisation’s good images to the public.

Helps a firm immensely in having an edge over other competitors.

Ethical consumerism has lead the consumers to be biased towards an org. with some CSR.

The effects of CSR and cause-related marketing on the company:

Enhanced public perception of the brand of the organization.

Rise in sales.Positive media coverage.Creation of a unique selling proposition over the

competitors.Strong incentives for customers to switch to the brand.Increased long-term customer loyalty.Improved relationship with retailers and supply chain.Improved employee loyalty and morale.

Marketing Implications because of Cause related marketing:

Marketers can use cause related marketing with generally two benefits–

Better social responsibility Better commercial advantages

THE FUTURE OF CORPORATE SOCIAL RESPONSIBILITY

Stringent Govt. policiesIncreased expectations from the societyIncreased competition in the marketGrowth and advancement

• Demographic• Increase in consumption• Health related issues• Technological advancement

THE FUTURE OF CAUSE RELATED MARKETING

A shift from CSR to CRMCSR: shoe companyCRM: classmateMerger of marketing and social responsibility• Increases sales• Creates goodwillCreation of a win-win situation

TRENDS IN CSR- a shift from charity to responsibility

Collaboration with NPOs

Community development

Environment management

SUGGESTIONS & RECOMMENDATIONS

Need for the awareness among the general public

Removing communication gap between corporations and general public

Small and medium enterprises should be brought under CSR domain

Role of government in rewarding the good work in CSR activities by the corporate houses

Taking the CSR program to the rural areas.Making CSR as compulsory discipline in the

business schools.Pooling the CSR activities by different

corporations towards the growth of the nation.Creation of an independent auditing agency

for mainstreaming and institutionalizing CSR in the main business framework of the companies.

THANK YOU