I guess the underlying assumption is that lot of the CSR stuff is done by a company to boost its own bottom line - enhanced reputation, corporate image and the like, turning into $$. Is that a bad thing? Not at all - seems like a win-win for the corporation and the beneficiaries. It is no wonder that lot of the companies use every opportunity to boast their CSR credentials.
Parterning with and raising/donating money to non-profit organizations fits the bill for most CSR activities. The conundrum presents itself when a corporation leverages a macro-social issue (global warming, climate change, teen-violence, poverty, etc.) to promote its offering (product/service) and make a buck. Their intention is to ride the wave of that burning social issue and use it as an advantage to emphasize the "goodness" of their offering in addressing that social problem - would that fit the definition of CSR? Or more importantly, will that qualify for a cause-related marketing we understand it to be? - since this is not vanilla CSR of just giving $ away.
Some of my thoughts... as I prepare to pick my project...
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Interesting reading. Would love to see what your thoughts are when you finally pick a project. Good Work.
ReplyDeleteI worked in fund development for a non profit organization prior to entering graduate school and we used the concept of cause-related marketing to lure corporate donors. To sell it, we highlighted two pieces equally: giving back and letting the community know about it (good PR). The corporations we solicited didn't just "ride the wave of a burning issue"; they selectively chose organizations that aligned with their mission and brand. I guess without further research I'd argue that cause-related marketing is a form of CSR.
ReplyDeleteYes, there have been some real good studies and articles written on CRM (cause-related marketing) as a vehicle to promote "good" in society, while benefiting the company. In fact, they espouse CRM being more effective compared to run-of-the-mill CSR (e.g. United Way support).
ReplyDeleteFurther, in many ways, corporate CRM is distinct from traditional CRM (e.g. for NPOs) -the delineation of "own good" vis-a-vis "societal good", who would be the target segments (given that the donors are the companies themselves), finding the right "fit" with a partner NPO, to name a few.
Well, my project promises to be an interesting, exploratory journey...
Ok Amanjeev. I'm back to settle this ongoing discussion. One of the readings Christy posted is titled, Cause-related Marketing - More Buck Than Bangy. Here's their definition of CSR:
ReplyDeleteWe prefer the term because-related marketing
because it indicates a focus on a specific cause, not the larger social good. CRM projects are not general "feel-good" or consciousness raising exercises; rather, they are attempts to generate resources,
usually financial, for specific concerns.
Importantly, too, the word "related" refers to something along side the cause, namely the business, which is co-promoted.
So you're right that your business has to find a related non profit partner, but it's also important to remember that the social good is not the main focus in this. In fact, it's probably at the bottom of the totem pole.
Ooooh, I wish I was still peer-reviewing your blog. I just found this other article in the California Management Review arguing that CSR is not always in demand. I think you touched on this in class, about picking the new fad. So your project would meet just about all of the requirements for a good CSR project: a specific cause that matches your company's brand and a topic that is on the social radar. Good job!
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