Corporate Social

Responsibility
Doing the Most Good for Your
Company and Your Cause

Philip kotler & Nancy Lee

 Nabila Zalzabila Lausepa
Direktorat SDM dan Umum
Corporate Social Responsibility
Chapter 1.
The Case for
Doing at Least
Some Good

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“Corporate Social Responsibility
is a comitment to improve
community well-being through
discretionary business practics
and contributions of corporate
resources” - author
World Business Council for
Sustainabile Development
CSR as ‘business’
commitment to contrribute
to sustainable economic
development, working with
employees, their families, the
local community and society The Organization Business
at large to improve their for Social Responsibility
quality of life CSR as ‘operating’ a business
in a manner that meets or
exceeds the ethical, legal,
commercial, and public
expectations that society has
of business

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In the last decade, directional signals point to:
× increased corporate giving;
× increased corporate reporting on social
responsibility initiatives;
× the establishment of a corporate social norm to do
good;
× an apparent transition from giving as an obligation
to giving as a startegy.

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The Major Current Challenges to
Doing Good
× Choosing a social issue
× Selecting an Initiative to Address the Issue
× Developing and Implementating Program Plans
× Evaluation

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Chapter 2.
Corporate Social Initiatives:
Six Options for Doing Good

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Six Options for Doing Good
× Cause Promotions
× Cause-Related Marketing
× Corporate Social Marketing
× Corporate Philanthrophy
× Community Volunteering
× Socially Responsible Business Practices

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Chapter 3.
Corporate Cause Promotions:
Increasing Awareness and
Concern for Social Causes

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Corporate Cause Promotions: Increasing Awareness and
Concern for Social Causes
Potential Corporate Benefits
Typical Cause Promotions
× Building awareness and
concern about a cause
× Persuading people to find out
more about the cause
× Persuading people to donate
their time to help those in
need
× Persuading people to donate
money that will benefit a
cause
× Persuading people to donate
nonmonetary resources
× Persuading people to
participate in events
Potential Concerns
× Strengthens Brand
Positioning
× Builds Traffic and Customer
Loyalty
× Creates Brand Preference
with Target Markets
× Provides Customers
Convenient Ways to
Contribute and Participate in
Causes
× Provides Opportunities for
Employees to Get Involved in
Something They Care About
× Creates Partnerships
× Strengthen Corporate Image
× Visibility for the corporation can
get lost
× Most promotional materials are
not sustainable
× Tracking total investment and
return on promotional
investments is especially difficult
× You may get swamped with
requests for contributions from
other organizations connected to
the cause
× This approach requires more time
and involvement than writing a
check
× Promotions are often easy to
replicate, removing any
competitive advantage
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Example: Ben & Jerry’s and
Global Warming
“Product Mission: to make, distribute and sell the finest quality,
all natural ice cream and euphoric concoctions with a continued
commitment to incorporating wholesome, natural ingredients and
promoting business practices that respect the Earth and the
environment”

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 Example:
Parade Magazine
and Hunger
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“Most Corporate benefits
are marketing related, with
advocates asserting that a
cause promotion can
strengthen brand
positioning, create brand
preference, increase
traffic, and build customer
loyalty”

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Chapter 4.
Cause-Related Marketing:
Making Contributions to Causes
Based on Product Sales

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Typical Corporate Cause-Related Marketing Initiatives

• A specified dollar amount for each product sold

• A specified dollar amount for every application or account opened
• A percentage of the sales of a product or transaction is pleged to the charity
• A portion of the sale of an item
• The company matches consumer contributions related to prouct-related
items
• A percentage of net profits from sales of a product or products is pledged
• The offer may be for only a specific, designated product
• It may be for a specific time frame
• The corporation may decide to set a ceiling for their contributions from sales

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Potential Corporate Benefits

• Attracting new customers

• Raising Funds for a Cause
• Reaching Niche Markets
• Increasing Product Sales
• Building Valuable Partnerships that
Support the Effort
• Building Positive Brand Identity

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Keys to Success

• Select a major cause that the company and the target audience
has passion about
• Choose a charity partner that has a broad base of existing and
potential relationships
• Target a product offer that has the most chemistry with the cause
• Research the idea with targeted customers
• Give the effort considerable visibility with potential buyers
• Keep the offer simple
• Be willing to recognize errors and make changes

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Example: American Express
 American Express recognized the need for, and comitted itself to being
an active part of, a process of healing, renewal, and revitalization in
lower Manhattan, Following the terorist attacks of 9/11

 American Express launched the campaign to Reopen the Statue of

Liberty. Recognizing the importance of the statue as a world symbol of
liberty and freedom an its place as one of the most significant
attractions in bringing people to lower Manhattan, American Express
pledged a minimum of $3 million to the statue. The funds will help
support critical safety improvements to the statue, which has been
closed to the public since September 11, 2001.

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 Promotional material for American
Express’s campaign to help reopen
Lady Liberty (Reprinted courtesy of
American Express)

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Chapter 5.
Corporate Social Marketing:
Supporting Behavior Change
Campaigns

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Typical Corporate Social Marketing Campaigns

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Potential Corporate Benefits
× Supporting Brand Positioning
× Creating Brand Preference
× Building Traffic
× Increasing Sales
× Improving Profitability Through Reducing
Costs
× Attracting Enthusiastic and Credible Partners
× Having a Real Impact on Social Change
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Chapter 6.
Corporate Philanthropy:
Making a Direct Contribution to a
Cause

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  Most Often in the form of cash grants,
donations and/or in-kind services

 The most traditional of all corporate social initiatives

and has historically been a major source of support
for comunity health and human service agencies,
education, and the arts, as well as organizations
with mission to protect the environment

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Typical Programs
× Providing cash donations
× Offering grants
× Awarding scholarships
× Donating products
× Donating services
× Providing technical expertise
× Allowing the use of facilities and distribution channel

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 Potentioal Benefits
 Building Reputation with Respected
Organizations
Example: ConAgra Foods and Feeding
Hungry Children

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Cont..
 Creating Community Goodwill and National Attention
 Strengthening the Corporation’s Industry
 Building and Securing a Strong Brand Position
 Having an Impact on Societal Issues in Local Communities
 Providing Opportunities for Noncash/In-Kind
Contributions

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Keys to a Successful
Philanthropic Program
× Actively engaged employees at all levels of the company,
particularly those at retail stores
× Secure the support of leadership
× Communicate results
× Celebrate Success

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“Philanthropic activities are the
norm for most corporations and
are always a consideration when
the corporation has citizenship
or philanthropic goals.”
Chapter 7.
Community Volunteering:
Employees Donating Their Time
and Talents

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Typical Programs
× Promoting the ethic through corporate
comunications that encourage employees to
volunteer in their community and that may provide
information on resources to access in order to
explore volunteer opportunities
× Suggesting specific causes and charities that the
employee might want to consider and providing
detailed information on how to get involved
× Organizing volunteer teams for a specific cause or
event
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× Helping employees find opportunities
× Providing paid time off during the year to do
volunteer work
× Awarding cash grants to charities where
employees spend time volunteering
× Recognizing exemplary employee volunteers
through gestures such as mentions in internal
newsletter

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Developing Community
Volunteering Programs
× Develop guidelines for employee involvement
× Determine types and levels of employee support
× Develop an internal communications plan
× Develop a recognition plan
× Develop an external communications plan
× Develop a plan for tracking and assesment

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Chapter 8.
Socially Responsible Business
Practices:
Discretionary Business Practices
and Investments to Support
Causes

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Typical Socially Responsible
Business Practices
× Designing Facilities to meet or exceed environmental
and safety recommendations and guidelines
× Developing process improvements
× Discontinuing product offerings that are considered
harmful but not illegal
× Selecting suppliers
× Choosing manufacturing and packaging materials
× Providing full disclosure of product materials and their
origins and potential hazards

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× Developing programs to support eployee well-being
× Measuring, tracking, and reporting of accountable
goals and actions
× Establishing guidelines for marketing to children
× Providing increased access for disabled populations
× Protecting privacy of consumer information
× Making decisions regarding plant, outsourcing, and
retail locations

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Potential Corporate Benefits
× Decrease Operating Costs
× Increases Community Goodwill for the corporation
× Creates brand preference with target markets
× Build influential partnerships
× Enhances employee well-being and satisfaction
× Contribute to desired brand positioning

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Example: Kraft Foods Global
Obesity Initiative
× The people at Kraft Foods believe they have a
responsibility along with many others to be part of
the solution, and they want to be.

× They make it clear that the following initiative

described by a Kraft excecutive is not a cause
promotion, but rather an initiative directed at their
own policies, practices, and behaviors as a
corporation

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 “Perhaps, more that with any
other social initiative, corporate
motives for new and more
responsible business practices
will be questioned, actions will be
judged, and results will be
scrutinized”
Chapter 9.
Twenty-five Best Practices for
Doing the Most Good for the
Company and the Cause

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Choosing Social Issues to
Support
1. Choosing onlu a few social issues
2. Choose those that are of concern in the
communities where do business
3. Choose issues that have synergy with mission,
values, products, and services
4. Choosing issues that have potential to support
business goals
5. Choose issues that aare concers to key constituent
groups
6. Choose issues that can be supported over a long
term

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Selecting initiatives to Support
Social Issues

7. Select Initiatives that best meet business

objectives and goals
8. Select initiatives that meet priority needs for
the cause
9. Select multiple initiatives for a single cause,
adding ones missing for current cause efforts
10.Select initiatives representing the most
potential for strong community partners
11.Select initiatives where you have history of
experience
12.Select inititatives that will leverage current
abundant resources
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Developing and Implementing
Program Plans

13.Form internal, cross-functional terms to develop plans

14.Include community partners in partners in plan
development
15.Establish clear objectives and measurable goals for the
company
16.Establish clear objectives and measurable goals for the
cause
17.Develop a communications plan
18.Identify and plan for additional strategic elements
19.Get senior management buy-in

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Evaluating efforts

20.Determine purpose of evaluation\

21.Measure and report resources outputs
22.Measure and report outcomes for the company, based on initiative
objectives an goals
23.Measure and report outcomes for the cause, based on initiative
objectives and goals
24.Monitor status of social issues that initiatives are supporting
25.Allocate adequate resources for measurement and reporting

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Chapter 10.
A Marketing Approach to Winning
Corporate Funding and Support for
Social Initiatives: Ten
Recommendations

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Recommendation 1:
Start by developing a list of social issues that
your organization or agency is currently
charged with supporting and that would
benefit from additional resources. Be
specific.

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Recommendation 2:
Identify a short list of corporations that these social
issues might have a connection with, something that
relates to their business mission, products and
services, customer base, employee passions,
communities where they do business, and/or their
corporate giving history

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Recommendation 3:
Approach corporations and/or their communication
agencies and find out more about their interest and
experiences relative to supporting social initiatives

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Recommendation 4:
Listen to their business needs

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Recommendation 5:
Share with them the social issues your organization supports,
the initiatives you are considering or engaged in, and your
strengths and resources. Find out which, if any, they find most
appealing

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Recommendation 6:
Prepare and submit a proposal to those corporations most
interested in your social issues . Present several optional
initiatives for potential support, ones that are the best match
for their stated business and marketing needs

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Recommendation 7:
Participate in developing an implementation
plan

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Recommendation 8:
Offer to handle as much of the
administrative legwork as possible

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Recommendation 9:
Assist in measuring and reporting outcomes

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Recommendation 10:
Provide recognition for the corporation’s
contribution, in ways preferred by the
company

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Thanks!

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