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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