Tag Archives: CSR platform

CSR is no longer a bandwagon. It’s a standard.

The recently released Cone Cause Evolution Study makes it clear that in the eyes of consumers there can be absolutely no doubt about the importance of CSR. In fact, the data would seem to indicate that on many issues, positive attitudes to CSR have reached a natural zenith.

In the 2010 study, 85% of those surveyed said they have a more positive image of a product or company when it supports a cause they care about. That represents no change from a 2008 study that asked the same question but in a 2007 Cone study, 92% agreed with the statement.

Likewise in 2010, 80% said they would switch from one brand to another if the other brand is associated with a good cause. But in 2007, that number was 87% and in 2008 it was 79%.

Cone’s headline to the 2010 study was that Moms and Millennials are leading the way in CSR attitudes. In reality, millennial attitudes showed very little movement over time. In a 2006 Cone study on Millennials, 89% agreed with the “brand switching for a good cause” statement from above. In 2008, that number had dropped to 88% and in 2010 it rose to 93%. Once you factor in statistical probabilities, the numbers are close to identical.

One could try and make arguments to explain the rises and dips in these numbers but it seems to me that once the measured agreement with certain statements reaches particular levels, the movement in numbers is irrelevant. Whether its 85%, 89% or 92%, it is very clear that buying decisions are indisputably being made on the basis of the CSR profiles of products and companies. Would 95% be that much more impressive than 92% for example?

There is (at least) one sobering statistic that emerges from the Cone study. Only 19% of people said they would buy a more expensive brand because of its cause profile. So, while CSR is firmly a part of consumer thought, it may not yet be translating into action. But that number is likely on the rise and increasingly we will see CSR investment translating into revenue.

In our firm’s interaction with numerous companies and prospective clients, we find many that wonder about “that CSR thing” and whether there’s just a fad factor  – a bandwagon effect. The answer – that successful owners and managers have already discovered – is that the bandwagon has passed. A strategic CSR program is now a business standard and a necessity to effectively compete in the marketplace.

Passion Points:

  • CSR is not a passing fad. If your business doesn’t have a strategic CSR program, is time to develop one.
  • Those who have implemented CSR programs should be evaluating and improving. As CSR increasingly becomes part of buying decisions, the quality of CSR programs will have to keep suit.
Advertisements

To compost or not to compost

So, I was going to write an article about Frito-Lay/SunChips’ new biodegradable bag (which I purchased for the first time last week), and to initiate a discussion about whether or not, from a cause marketing point of view, the company has done a strategic job of leveraging their CSR efforts to their best business advantage.  But when I sat down to read up about SunChips’ marketing process, I learned that the biodegradable bag had been yanked due to noise levels!

Indeed, I noticed right away that the bag was noisy.  Like a freight train actually.  But as an environmentally concerned consumer, I felt good knowing that I could put the bag in my green bin. In fact – I wasn’t much of a SunChips enthusiast before the bag hit the shelves.  I bought the chips because of the bag.  And I suppose that was part of the company’s motivation for introducing a compost-able bag in the first place.  Again, as an environmentally concerned consumer, I was shocked that feedback over the bag’s noise level would have been enough to prompt an overhaul of SunChips’ heavily hyped and costly compost-able bag rollout. 

So what exactly is going on here?  Why all of the corporate flip-flopping around a fairly compelling and cutting-edge green packaging initiative?  My best guess is that Frito-Lay determined (after an assessment of focus groups and initial reactions) that the bottom line business gain resulting from their CSR efforts (after all, lots of folks like me would have probably continued buying the chips in spite of the noise) was going to be eclipsed by the broader public’s reaction to the bag’s noise level.  In other words, good business sense trumped the company’s interest in doing good

Frito-Lay is going to reintroduce a quieter version of their biodegradable bag soon enough, so they haven’t abandoned ship altogether.  But there is a fundamental lesson to be learned – that is, CSR efforts must be strategic.  They have to integrate with the bigger business picture.  They have to consider the needs and interests of target markets and corporate stakeholders.  In other words, while they have to be authentic, they ultimately have to help drive business (and certainly not undermine it). 

Sounds like basic stuff.  Also sounds like Frito-Lay learned the hard way.

Passion Points:

  • When considering a CSR or sustainability strategy, don’t lose sight of the business bigger picture
  • Consider the demographic of your key stakeholder groups – what are their priorities and interests, how will they react to your CSR platform?

CSR Harmony

Loblaw Companies Limited recently released its third annual Corporate Social Responsibility report titled “The Way We Do Business”, and true to form, the company continues to blaze trails in this arena. According to Galen Weston, Executive Chairman, Loblaw’s goal is to, “to meet the needs of today while preparing to address the social impacts facing Canada in the future.”

Loblaw’s CSR platform defines the nature of business which fuels a symbiosis that is exemplary.  “Doing Good” and “Doing Business” are enmeshed priorities that function as complements to one another.

Five pillars establish a corporate culture against which all business operations are measured: Respect the Environment; Source with Integrity; Make a Positive Difference in Our Community; Reflect Our Nation’s Diversity; and Be a Great Place to Work.

Clark Turner writes about the dangers of Greenwashing and counsels businesses on how to develop sustainability practices that are authentic and genuine.  And in fact all CSR initiatives (employee engagement programs, environmental projects, cause branding campaigns) should be rooted in genuine core corporate values.

If a company starts with a strong sense of its corporate identity – what it stands for, what its stakeholders care about, it’s vision for the future of the community it serves – than it is more likely that an authentic CSR effort will follow.  Too often, companies explore CSR and Sustainability practices as a knee-jerk reaction to stakeholder pressure, churning out programs that are ad hoc, and in no way a meaningful reflection of true corporate values.  We are seeing the implications of that process with BP and the oil spill.

Loblaw figured this out early on their process and they continue to reap the benefits on all fronts.

Passion Points

  • Let your corporate identity lead the way
  • Be true to your values
  • Practice what you preach
  • Make sure that your CSR practices reciprocally support your business model