CSR in consumer behavior, CSR in marketing

Marketing Theory and Marketing Management in the Digital

Age - lecture Nr. 12
12 December 2019
Prof. Rita Lukács PhD
Learning objectives

Understand the need for consumer trust and the idea of CSR.
Identify main practices for integrating CSR into marketing communications.
Literature: Kotler-Keller / Chapter 23
What is CSR?
Corporate Social Responsibility

„integrating social,
environmental, ethical,
consumer, and human
rights concerns into their
business strategy and
operations”
Source: European Union,
retrieved 30.10.2019
UN Sustainable Development Goals

Source: UN, retrieved 30.10.2019

Expectations vs. performance ➔ changed social contract
Society’s
expectation of
business’s
performance
Social performance: expected

Social
problem
and actual

Social Business’s actual

social performance
problem

1960s 2020
Source: Carroll – Buchholtz (2017): Business and Society, 10th edition, p. 15
The result: lack of trust
Corporate Reputation framework (by Fombrun)

Source: Reputation Institute retrieved 30.10.2019

Increased customer expectations

Source: 2019 Edelman Trust Barometer special report, p. 2

CSR in marketing communication
Where and how to start?

Preparation
Think global, act local [understand the local environment].
Know your stakeholders and their expectations [map the stakeholders].
Find reliable and credible partners.
Communication
Start a dialogue with stakeholders, engage them into planning & execution.
Talk the walk [communicate about your programs].
Align purpose / campaign with
Brand values (e.g. being innovative, family-centred)
Core business (e.g. McDonald’s & the Olympics)
Main environmental, social impacts (e.g. energy-efficiency in banks)
Competitor’s activities (to differentiate the company)
1. CSR labels & certifications

Labels and certifications can be

Local, industry- or brand-specific
Environmental or social
Signs for a high-level CSR-performance
Marketing advantages:
Trust thanks to certified quality / performance
Easy-to-communicate signs to be used on the
packaging, in the marketing communication
Increase sales in specific target groups
Better reputation (only if it is differentiating from
competitors)
2. Cause Promotion

Corporate funds, contributions, other resources to increase

awareness for a specific cause
Marketing advantages:
Better reputation
Increase sales & loyalty
Generate consumer traffic
Motivate employees and partners
Source: Yves Rocher, yvesrocher.ca retrieved 30.10.2019
3. Cause Related Marketing (CRM)

Links donation to product sales (or other

consumer action)
Marketing advantages:
Co-branded communication and advertisements
(increased credibility)
„Ownership” of a good cause, considered as a brand
attribute
Increased sales due to specific promotions
Engage customers (short term)
Improve reputation (long term)
Source: Avon, avon.com retrieved 30.10.2019
4. Corporate Social Marketing

Using business resources to implement a

behaviour change campaign
Intend to develop / improve:
Public health
Safety
Environment
Community well-being
Awareness for a specific cause
Marketing advantages:
„Ownership” of a good cause, considered as a
brand attribute
Brands can find their specific segments & fans
! It can threaten conservative attitude, can
damage the brand, start a debate!
5. Corporate Philanthropy

Corporate contribution to a charity /

cause
Most frequent forms: cash grants,
donations, in-kind services
Marketing advantages:
Increase brand awareness (thanks to
press coverage)
Better reputation (being a good citizen)
Incarnation of corporate values
Increase employee engagement

Source: Carroll – Buchholtz (2017):

Business and Society, 10th edition, p. 39
Source: Patagonia, patagonia.com retrieved 30.10.2019
6. Community Volunteering

Encourage employees or members of

the local community to engage with
non-profit organizations and causes
Community volunteering
Expert volunteering
Marketing advantages
Increased loyalty among employees
Better reputation (in general, and in local
community, as well)

Source: I Run Success retrieved 30.10.2019

7. Socially Responsible Business Practices

Corporate business practices to

Support social causes
Improve community well-being
Protect the environment
Marketing advantages
Differentiate among competitors
Increase green / social competition in the market
Brands can find their specific segments & fans
Educate and inspire customers & increase their
awareness

Source: Patagonia retrieved 30.10.2019

Source: IKEA, ikea.com retrieved 30.10.2019
Thank you for your attention!