Environmentally speaking…

This is a special post because it responds to the request of BlogActionDay for a blog post in every blog around the world that will cite an environmental issue (of the bloggers’ choice) for today: Monday 15 of October of 2007.

Because of the fact that my blog is related with business issues, I will discuss about CSR initiatives. Corporate Social Responsibility can take many and various forms; one very important aspect of CSR can relate to corporate environmental “sensitivity”. Many corporations globally choose to focus their corporate social initiatives and programs in the protection and sustainability of the environment. Some very common environmental initiatives may be the following:

• Recycling various materials (print paper, glass, plastic)
• Reduction of Energy consumption (power saving policies, use of technological innovations)
• Reforestation (of burned forests)
• Cleaning of the sea and the coastline
• Fighting global warming (reduction of CO2 emissions, etc.)

Environmental initiatives are most likely to be undertaken by large corporations with industrial activities. This is because such corporations usually pollute or deteriorate the environment and they now realize the outcome of their actions and the future impact they will have on the lives of all living beings. Large industrial corporations take on these initiatives to improve their brand name by “compensating society for their deeds”. These corporations start to use air filters that decrease air pollution and toxic gas emissions, they implement power saving tactics such as low energy consumption devices, they use recycled raw materials e.g. recycled paper, glass, etc. Moreover they infuse that environmental friendly philosophy in their employees to act respectively both in their workplace and in their private lives.

On the other hand there is a great number of heavy industrial units that do not compromise with laws and environmental policies. They often evade law procedures and engage into lobbying tactics to avoid acts against them. Sometimes the only powerful weapon against those kind of corporations is branding. People are getting more concerned about environmental issues in recent times and they start to demand firms not to pollute and act in accordance with nature. The consumer has great power and should start boycotting the former type of corporations. Only then top management in these unethical corporations will realize the deterioration in their brand name and may start implementing environmental friendly policies.

CSR and True Devotion…

Here is a tough question: Is it really possible for a firm to show real devotion to a cause or social initiative? I mean real and authentic interest. Do you believe that this can be the case? Most of the companies that have implemented a CSR program claim that they are truly interested in solving or contributing to a social problem. They do not cite as their main reason for a CSR campaign the branding and marketing benefits that by all means seek. I personally believe that almost all the companies that are involved in a corporate social responsibility initiative and cause have as their prime goal branding and marketing benefits. However, in this pursuit for differentiation and advantage they can make a truly great impact in the society. I also hold the opinion that there might be a very small percentage of corporations that are devoted to a cause because of the cause itself and not for all the potential (marketing and branding) benefits that they may reap.

Blogging for Corporate Social Responsibility

Corporate Blogs can disclose information about the firm’s social responsibility campaigns and initiatives. Such actions deliver very effective messages to a greatly wide range of stakeholders. Social Responsibility Initiatives and Programs add a really great value in a brand name. The whole process may be done with a formal or an informal way of blogging and the disclosure of information may be delivered with the same style.


Some examples

• Regular posting on everyday initiatives’ progress

• Posting about some major and minor events

• Posting about new initiatives undertaken

• Posting about weekly – monthly aims / goals and their results

• Posting thoughts and ideas for new initiatives or improving old campaigns

• Posting meetings’ outcomes

• Posting self-assessment on how one is contributing on a CSR initiative

• Posting about how a team devoted to a social cause works together

• Posting about tough problems and challenges that appear and need solutions

Interactivity

A blog about corporate social responsibility enable great interactivity and feedback from every potential stakeholder group and that can become a strategic competitive advantage that will take a corporation a step ahead of even the most innovative and creative (in terms of CSR and marketing) competitors.

Social Causes

One great use of social media and user generated content of any form (text, audio and especially video) is to support a cause and a social initiative. Corporations in particular can utilize that form of communication to publicize and enhance awareness of the cause and their contributions as well. Corporate social initiatives and corporate social responsibility are current trends that have great impact in brand reputation and equity. I believe that businesses will realize the potential benefits that social media could add to their CSR campaigns and start utilizing these as strategic tools.

An example of my previous statement can clarify what I mean. Suppose you are a business that starts a new social initiative, for example a race against deforestation. You can host videos and other forms of content (such as photos, text comments, etc.) of local people and your employees planting trees. On each event you plan and host you can add valuable content of that kind to inspire more people to join your efforts, to show that while doing these activities you can have fun and to show that you support and embrace your community and its members. These videos or media of any kind you choose to implement can also have a great educational value.

Kinds of Corporate Social Initiatives and major problems-challenges when designing a Corporate Social Responsibility Program

Those involved with the development of corporate social responsibility initiatives always face the problem of which kind of corporate programs about social responsibility to adopt. This is indeed a great challenge for a marketer and may lead to an unprecedented success or a complete disaster! Hence there is great need for a careful plan to be designed and be successfully integrated. Although there are several categories that social initiatives fall in, it is preferable for a company to choose one or more categories rather to implement many different programs which will likely cause little cooperation and may confuse the customers. A full descriptive study about different types of CSR initiatives is included in Kotler’s and Lee’s book: Corporate Social Responsibility. The writers group the most common CSR programs (those which fall into the corporate social responsibility concept umbrella) in 6 categories: cause promotion, cause related marketing, corporate social marketing, corporate philanthropy, social responsibility practices and employee volunteering. Also note that this categorization is not the only one. For example many companies choose to categorize programs in group of similar activities such as environmental activities etc. Or other companies implement social responsibility programs categorized according to the respective stakeholder. For each CSR category there are specific steps in creating the plan of action. Many of these steps are similar for different categories or even exactly the same.

The second more important decision, beyond what social issue should one get tied with, is if one should include partners (both for-profit or not-for-profit) and if so, what partners and what kind of partnership to tie? Partnerships can play a very important role in a CSR’s program success. Strong Partners can wield great influence upon pressure groups and consumers and thus they can reinforce the company’s brand name and add value for the firm. Moreover partners can link the company with several stakeholders, they can add validity and reliability to a CSR initiative and provide with the necessary know-how.

Corporate Social Responsibility # 2: Business Ethics

Continuing the article about CSR (corporate social responsibility), I would like to discuss about the ethical part of businesses and the part ethics play both in the performance of a company and in the planning of a CSR program.

Ethical questions arise very often in the business world not only in strategic level but also in everyday decisions about normal and usual activities of the company. Managers should follow the guidelines and the main principals of the company in order to resolve ethical problems and answer to difficult questions. Under the context of CSR and Business Ethics a manager should always seek to find the moral answer to his questions and decide to act good to the environment and the society in general. Reasons to support the context of CSR have been discussed in an older post below. Consequently, managers when deciding which option to choose, the first which cause harm or the second which has a positive impact on society, should choose the latter.

Real problems arise when both choices are ethically right and good!!! On occasions like this –which are not very rare – managers face great dilemmas as to which option to choose and which good practice should sacrifice in order to provide greater welfare to individuals and society. A good idea then is to consult the main principles of the company or organization in which he/she works and find which option is evaluated as more important and higher in the main objectives list. One can ask guidance from his/her supervisors, from code of ethics of one’s company or relevant manuals, etc. However there are some dilemmas which are not being addressed by the code of ethics of the company (or organization) or are ambiguous. In those occasions things are even harder for managers to decide. The real interest and an integrated education and deployment of ethics in the organization in which ethical questions have not been addressed can provide the ground for the solution of the problem/challenge, while the final answer would be made by the manager. An example of such a good against good decision is given –among others – in the book “Business Ethics” by Chris Moon, Clive Bonny et al., (Profile Books Ltd.): A company has very strict rules against bribery but when it comes about human lives which can be saved (for example a pharmaceutical company during a war), decisions are very tough to be made and may be against shareholders opinions, law and reputation. Thus when one have to choose between conceding bribery for many lives to be saved or against bribery (in favor of company integrity, legitimacy and good reputation) and loss of lives, could be in deep water. Many examples could be cited (one is referred to the above book), but the questions are not being addressed.

On conclusion, as above, moral integrity and ethical education can provide the frame for answering difficult moral questions but cannot provide solutions to real dilemmas, who have to been addressed effectively by individual managers.

Another good reference is: Kotler Philip, Lee Nancy, Corporate Social Responsibility, John Wiley & Sons Inc., 2005

Corporate Social Resposibility

I 've been inactive for a while, sorry about that!

I would like to discuss a few things about corporate social responsibility, a fast growing concept which is not as considered such a new idea!

Corporate Social Responsibility

Corporate Social Responsibility is about activities undertaken by corporations and organisations as regards environmental and social issues. It is about environmental protection measures such as reforestation or activities against sea contamination; sociatal issues such as unemployment programs, human rights support, local communities support etc.

Social Responsibility while it seems to be against shareholders' interests and share value can have a positive impact to the price of a share. Several researches from many countries have shown that although there are some others with ambiguous results.

Corporate Social Responsibility:

• Can boost a corporation's reputation (by increased publicity, strong Brand name building, word-of-mouth, etc.)
• Can save millions from prosecutions, negative publicity, riots, provoked by dissatisfied customers, pressure groups, local communities and the sevaral stakeholders (there are many examples of corporations which have been damaged in millions dollars and reputation)

There are several programs that corporations undertake, some of them may be:

• Support for literacy
• Support for Humal Rights and Labour Relations
• Fight against environmental pollution (air pollution, sea contamination)
• Fight against hunger, diseases (such HIV), race and other discriminations
• Support for child's rights and against children's employment
• Local community support (local umemployment, sustainable development and resources of local communities)
• Support for culture, science, sports etc.

There is not any standard program to undertake or any best policy to adopt. The best way to involve into corporate social responsibility practises is to find the needs of your corporation, the obtainability of your objectives and the impact your business has to the sociaty and the environment. Then you can choose the best program to fit your business goals and objectives and create your plan of action. It is also crucial to enable channels for interaction and communication with your stakeholders (shareholders, state, employees, suppliers and customers, pressure groups etc.) and support feedback from those groups. Thus you can be enable to predict the impact of your actions, mentain a good and honest communication and relation with your stakeholders something which will give you their help and support.

That's for now! Stay tuned-in for more articles and resources about Business and Marketing practices...