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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