To realise the developed India by 2020

Sunday, April 6, 2008

RE: [India_Vision_2020] Debate: Is CSR a brand building exercise or a social service activity?

Dear All,

Communications departments are the eyes and ears of companies whose very existence depends on the favor of their key constituencies. Their understanding of environmental and social risk and opportunity can be a major asset in engaging stakeholders and finding common ground. And it's no surprise that corporations' communicators are leading the charge. Many already have experience collecting CR data, conveying CR messages across an organization and executing stakeholder engagement. Their new challenge: Helping the business units fully grasp the value of CR to their bottom line and conveying the importance of balanced reporting.

Today, CSR activities and effective communication of the same is extremely important to all stakeholders for a company – Employees; Customers; Investors; Industry Partners, etc, and hence cannot be ignored.

Communicating about CSR to employees

This is a subject workers clearly care about—so much so that about 94 percent at a recent poll conducted, said they would take a smaller salary to work for a socially responsible company.

Considering that the study found that employees (along with investors) are the most important audiences for CSR communication, companies often need to do good job of targeting them.

"Most companies interviewed [for the study] agreed unequivocally that employees are the most important audience for CR communications. Why? Because directing CR communications at employees further ingrains CR into the company's culture, while also providing personal satisfaction and empowerment among the employees."

Companies should use a wide variety of tools to explain the company's CSR efforts—and how employees can help. Those profiled in the report have used everything from e-mail and newsletters to town hall meetings to get the word out to workers.

Across the board, those organizations have received overwhelmingly positive response from workers.

Employees' and potential employees' interest in CR is hardly passive. They are not simply interested in their company's CR practices, but are clearly willing to participate—that is, to be directly involved with working on products or services that advance social causes and promote environmental responsibility.

Communicating about CSR results in good business ideas

Indeed, it has been found that when communication about CSR became more frequent, widespread and open, it "created new dialogues within the company—between the corporate communicators and the brands, for example. As and when key groups open up their lines of communication, new ideas and products have sprung forth.

For example, in 2006 Timberland employees came up with the idea of not only making environmentally friendlier packaging for the company's footwear products, but also of adding a "nutrition label" with details on the product's environmental footprint.

The 'Our Footprint' label appears on the side of each footwear box so consumers 'know exactly what went into making the shoes you put on your feet'. Resembling the 'nutrition facts' label found on food and beverage products, the Timberland label gives consumers an easy-to-digest way to learn more about the company's environmental efforts.

Don't forget prospective employees

It has also been found that many companies are actually missing out on this 'valuable opportunity to communicate to all company stakeholders'.

JPMorgan, however, has seized that opportunity. The financial giant hosts an annual social venture competition for undergraduate and graduate students. Students are encouraged to select a nonprofit organization and make the business case as to why JPMorgan should invest in it. The best cases are selected to present to JPMorgan executives at the company's global headquarters in New York. The winning team's nonprofit receives $25,000, while JPMorgan is awarded with the chance to closely interact with an intelligent, ambitious and socially responsible group of potential employees.

Corporate communications is a key driver to the success of a CSR program. Here are what companies that are already succeeding are doing:

• Communicating with third-party groups (such as NGOs) as a means of connecting with other key stakeholders

• Using opinion leaders to generate media coverage, which garners employees' attention, and in turn influences consumers.

Regards,

Reema

Reema Sarin | AVP, Marketing & Corporate Communications | AppLabs
Plot # 83 & 84, Road # 2, Banjara Hills, Hyderabad - 500 034
Office: +91 40 2355 8000 | Mobile: +91 9849647772 | Fax: +91 40 2355 8111
reema.sarin@applabs.com | AppLabs.com

no doubt about it

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From: India_Vision_2020@yahoogroups.com [mailto:India_Vision_2020@yahoogroups.com] On Behalf Of Prime Point Srinivasan
Sent: Thursday, March 20, 2008 7:42 PM
To: Image Management group; Prpoint Group; India Vision group
Subject: [India_Vision_2020] Debate: Is CSR a brand building exercise or a social service activity?

 

dear friends

 

We propose to have our April issue of ezine with the theme 'Corporate Social Responsiblity' (CSR).  Presently  CSR has become the new buzzword amongst the Corporates. 

 

Many Corporates have  now started creating new departments for CSR.  Even Public Relations Agencies have started opening up CSR wings within their own Agencies. 

 

I want members to share their views  on the following: 

 

(1)  how far this CSR concept is taken seriously by the Corporates?

(2)  Do the Corporates use this CSR as their Brand building exercise?  If so, is it acceptable or not?

(3)  How the Corporates can implment CSR effectively?

 

Some of the good views will be published in our April issue.

 

srinivasan

Moderator 

 

 

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