CSR

What is CSR?

Corporate Social Responsibility —> a company being socially responsible

What does a CSR business model look like?

It is a business model where companies integrate social and environmental concerns into their operations.

Traditional marketing vs. CSR marketing

• Traditional marketing: focuses solely on profit

  • product benefits, short-term sales, profit-driven, transactional (buying and selling exchange between people)

    • focused on brand loyalty, long-term customers

• CSR marketing: considers the “triple bottom line”

  • company values, long-term brand building, purpose-driven, emotional connections

What is the “triple bottom line”?

1. people

2. planet

3. profit

Describe people in the “triple bottom line”

social impact and community welfare

describe planet in the “triple bottom line”

environmental sustainability and protection

describe profit in the “triple bottom line”

financial success that supports the other 2 pillars

The 4 pillars of CSR

1. Environemntal Responsibility

2. Ethical Responsibility

3. Philanthropic Responsibility

4. Economic Responsibility

Describe the evironmental pillar

reducing carbon footprint, sustainable practices

describe the ethical pillar

fair labor pradtices, supply chain transparency (legal/law responsibility fits in this category)

describe the philanthropic pillar

community investment, charitable giving, giving back

describe the economic pillar

creating jobs, supporting local economies (AKA financial responsibility)

Ben & Jerry’s Social Mission

• Climate justice and social equity initiatives integrated into business model

• uses ice cream flavors to promote social causes

• takes public stances on controversial issues

Risks/benefits of taking a stance on a controversial issue:

push people in that agree with you, BUT push people out that don’t agree with you

Microsoft Environment Commitment

• carbon negative pledge: remove more carbon than they emit by 2030

• $1 billion climate innovation fund launched

• demonstrates how tech companies can lead environmental change

• environmental pillar

The power of authenticity

• modern customers, expecially Gen Z, can detect inauthentic CSR efforts

• 73% of consumers will pay more for sustainable products

• 83% of millenials consider company values when making purchases

• authentic CSR increases brand loyalty by 47%

Greenwashing

false or misleading environmental claims

Warning signs of greenwashing

vague claims, minor efforts highlights, green imagery without substance

How to EVALUATE the authencity of a CSR campaign/efforts

• third-party validation

• transparency

• consistency

• align with the company’s core values

• commitment: long-term

negatives of CSR

• if done incorrectly, customers will turn away

• greenwashing

• high financial investment required for CSR

ESG investing

environmental (renewable, reducing waste) social (relationships with employees) and governance (ethical how being led/managed diverse, inclusive) investing

Coca-Cola

• ESG

• women’s empowerment

• sustainability packaging

• watersecurity

• recyled 62% of cans and bottles in 2023

• they have the “aim of collecting and recycling every bottle, making their packaging 100% recyclable,” in order to have a ‘world without waste’ (their motto).

• They are centered on sustainability through 3 areas: climate, packaging, and product quality. 

Lots of companies in UAE putting CSR in work force

Google

• DEI

• carbon neutral

• want NET 0 by 2030

• innovative tech

• wildlife preservation

• economic environment

• high levels of employee engagement

• big on environmental causes

• bike ride day

• 20% of the time, employees can spend working on projects meaningful to them

Cadence Design System

• electronic design

• ethical to employees

• incorporate women into AI tech

Costco

• treat employees with very high respect

• high wages, yeilds companies success

Pepsi

• works with farmers

• recyled plastic bottles

• safe working conditions

negative CSR brand

• Shell: top carbon emitters

• IKEA: took wood from a bad place

• KEURIG: not recyclable

• DELTA: false claims of carbon neutrality

CSR should…

align with brand values (long-term values)

positive employee impact

• Afinity group

  • Like-minded people can come together and elaborate

• volunteering (still a paid day)

• feedback

4 things to check if CSR efforts are good

1. shared value

2. shareholders are informed

3. sizeable impact on brand image

4. CSR efforts correlate with brand mission

positive CSR brand

• CSR not correlated with brand

  • Merch & Co

  • CISCO

  • Microsoft

• CSR correlated with brand, next level

  • Patagonia

  • Toms

  • Starbucks

CSR strategies

• healthy environment workplace

• measureable results

• have goals that relate to business

• socially responsible

• feedback to better company from customers

CSR in hospitality

• ex> restaurants, hotels

• better treatment of workers leads to better service

• hotels

  • hotels & lodging, food & beverage and events management

  • energy efficient

  • waste management

  • water conservation

CSR in future

• climate change more important to consumers

• how companies introduce AI into their business models

Johnson & Johnson

1. have been focused on their impact on the planet for THREE decades.

2. continues to seek out renewable energy options with the goal of having 100% of its energy needs from renewable sources by 2025.

LEGO

1. Has taken steps to reduce its environmental footprint

2. aims to produce all core products + packaging in non-plastic materials

3. reducing box sizes, introducing plant-based building pieces, etc 

Starbucks

1. Starbucks has redefined ethical sourcing through its Coffee and Farmer Equity (CAFE) practices, ensuring that 99% of its coffee is eco-friendly and obtained through fair contracts. By prioritizing economic and environmental standards, Starbucks builds stronger connections with coffee growers and provides a sustainable supply chain

Federal initiative

Environmental Policies

• National Environmental Policy Act (NEPA): This law requires agencies to disclose the environmental effects of their actions.

• Clean Air Act: This law regulates air pollution from industries and vehicles to protect public health and the environment.

• Endangered Species Act (ESA): This law has strict requirements to protect rare species and their ecosystems.

challenges

• Lack of Community Participation: There is a lack of interest from consumers in contributing to CSR activities of companies.

• Issues of Transparency: Companies not being honest with their efforts. This lack of transparency negatively impacts the process of trust-building between companies and their consumers.

• Political Pushback – Shifting government priorities can disrupt or weaken CSR commitments tied to climate policies.