Introduction
Corporate Social responsibility, or CSR, has been defined as the continuing commitment by business to contribute to economic development, while improving the quality of life of the work force and their families as well as of the community and society at large (World Business Council for Sustainable Development, n.d.). At their heart, CSR initiatives aim to increase goodwill, money, and recognition of a cause, but have no specific intention of influencing customer behavior, which would seem to be a little at odds with the reason most corporations exist. The solution to this seemingly paradoxical conundrum is where corporate social marketing, or CSM, comes in.
Purpose Statement
This article will illuminate the importance of the growing trend of Corporate Social Marketing and its impact on branding efforts, improving corporate profits and on the creation of an effective marketing plan-- all seen through the prism of the consumer’s idea of self identity.
Corporate Social Marketing
Phillip Kotler, a widely acknowledged expert in the field of modern marketing, described the concept of societal (or social) marketing as the organization’s task to “determine the needs, wants and interests of target markets and to deliver desired satisfaction more effectively and efficiently than competitors in a way that preserves or enhances the Consumers and the society’s well-being” (Vashisht, 2005). On its face it seems simple, but not every initiative or cause will resonate with every consumer. However, if CSM can be executed successfully, the company
can gain brand recognition, improve profits, add substance to the marketing plan, and create a brand that truly resonates with its audience on multiple levels. The trick of course, is to create a scenario in which the marketer can truly understand the motivations of the consumer. If a company is to strategically integrate a Corporate Social Responsibility element into their marketing, they must start by acknowledging the interests and attitudes of their many stakeholders, both internal as well as external. Those stakeholders can have a significant impact on the bottom line of a company, and if a proper CSM program is implemented to such a degree that it becomes a part of the brand identity, constituent stakeholders will typically begin to exhibit pro-company behavior (Hildebrand, Sen, Bhattacharya, 2011).
The Self.
When a consumer compares himself to a social ideal, his self-judgment actually impacts his own self-esteem. Whether that social ideal is income, prestige, social conscience, or whatever, the ideal self is a person’s conception of how he should be, or how he would like to be with regard to that social ideal (Solomon, 2013a). Because the ideal self usually differs from the actual self, consumers strive to affect the characteristics of the ideal self, based on the person they wish to be. Self-image, or self-perception, is very closely associated with the personality in that consumers tend to buy products and services from companies with personalities very similar to their own (Gountas, & Mavado, 2003). Moreover, it is becoming increasingly apparent that consumer self-perception is leaning toward the socially responsible end of the spectrum. In fact, more than 88% of consumers think companies should try to achieve their business goals while improving society and the environment, and 65% of employees (another key stakeholder) would consider leaving their job if their employer hurt the environment (Epstein-Reeves, 2010).
It is also important to note that a close relationship between actual self-image/product image congruity and consumer choice in product preference, purchase intention, product usage, ownership, and consumer loyalty has been supported by numerous studies (Sirgy, 1982). It is because of this fact that it becomes critical to take stakeholder self image into consideration when incorporating CSR into a marketing /branding plan.
Branding
Whether influence comes from a changing zeitgeist, or individual awakening to the idea that corporations need to give back to society, more and more people are aligning their self-image and their ideal self-concept with a mindset of conservation, charity and sustainable production models. As a result, a key factor driving the growth of CSM initiatives is the realization that consumer perceptions of a company as a whole and its role in society can significantly impact a brand’s strength and equity (Hoeffler & Keller, 2002). In fact, branding guru Kevin Lane Keller has stated, “although firms provide the impetus for brand creation through their marketing programs and other activities, ultimately a brand is something that resides in the minds of consumers” (Keller, 2013). It becomes imperative then for a company to be cognizant of how consumers feel about themselves, and in-turn how their organization can align with those self-perceptions.
Brands often have clearly defined images, or “personalities” created by advertising, packaging, branding and other marketing strategies (Solomon, 2013b). CSM initiatives can impact those other activities by serving as a means for improving overall brand recognition. Of course the type and amount of recognition a brand receives from CSM initiatives is largely a
function of the amount and nature of its communication in the company’s branding (Hoeffler & Keller, 2002). For a brand to grow in today’s marketplace, it must become relevant in some way to the consumer. Relevance can be created by incorporating a strong CSM element into the overall marketing plan, but the CSM initiatives must be proactive in responding to actual trends, understanding the consumer’s concerns and self perceptions, as well as demonstrating that the participation by the company will actually meet a societal need.
An example of a company that successfully uses CSM to support its brand position is SUBWAY® Sandwich Shops. SUBWAY® is the first fast food restaurant to earn the American Heart Association’s Heart Check for serving heart-healthy meals (Subway, n.d.). With more and more people voicing concern for diet, health and overall wellbeing, SUBWAY® has incorporated CSM initiatives that reach to the very essence and core of their brand. The company has attempted to fill a real societal need that resonates with their stakeholders and is clearly benefitting from their partnership with the American Heart Association. The SUBWAY® brand is now indelibly associated with being a heart-healthy option, even though all of their offerings don’t necessarily fit the criteria. The societal impact is that the brand not only makes healthy alternatives available, but also actually encourages a contingent of the population to take control of their lives by eating healthier meals.
Improving Profits.
Today, amid the lingering remnants of a fierce recession that has ravaged corporate profits and intensified pressure from shareholders, companies are endeavoring to create newer and more comprehensive CSR models than ever before (Knowledge@Wharton, 2012). The more cynical stakeholders may view CSR and CSM as mere gimmicks that pander to the audience and that are
only implemented in order to increase sales and gain attention. Ultimately, the initiatives can improve sales and will gain attention, but only if they are conducted in accordance with the brand’s ethical obligations and are meaningful to society on the macro level, and individual self perceptions on the micro level.
A simple example of a company employing a CSM program to build profit is the Best Buy recycling program. The program offers consumers the ability to recycle up to three items per day, and almost everything electronic is included. The initiative is ecologically sound and earth friendly, while giving consumers an incentive to go to a Best Buy location. Consumers are offered discounts and trade options related to their recycling items, and have shown to be likely to replace items while in the store. While the program is still relatively new, it is profitable, if only barely. Leo Raudys, senior director of environmental sustainability said that Best Buy really has multiple revenue streams from this program. First, they get a cut of the commodity sales from their recycling partners, and then they also receive revenues from its manufacturing partners who are bound by federal regulation to recycle a certain portion of their product a year. Although Best Buy considers the program a “value added service” for their customers, they do enjoy incremental sales associated with the program (Aston, 2012). Of course it goes without saying that Best Buy is reaping benefits measured in brand equity and recognition.
Incorporating CSM Into the Marketing Plan
As we have seen, a CSM program can be a very effective and beneficial component of a company’s marketing strategy and should be formally written into the plan. Garratt Hasenstab, the Director of Sustainability at the Verdigris Group stated that they have made it not only a marketing policy, but also a corporate policy to become a world leader in CSR. The policy is not
only written into their marketing plans, but permeates the very fiber of the company, and they benefit in a number of ways (Thorpe, 2013). Most company managers will be amenable to supporting a CSM component because they know it is good business to be perceived as a socially responsible organization, and they would be right. The problem then is how does the marketing team execute the CSM plan? A good start would be an in-depth research study to determine the thoughts and feelings of the various stakeholder segments to gain a deeper understanding of not only how they perceive the world around them, but also how they perceive themselves and their role therein. It will also be imperative for marketing managers to be proactive in initiating a program rather than creating one as a response to pressure from the competition. In other words, it has to be real. Consumers are savvy and cynical and will see right through a corporate responsibility measure enacted for the wrong reasons. The cause has to be familiar to, and resonate with, the consumers first, and then its also critical that it supports the company’s overall mission statement, goals, products and/or services.
Conclusion
As the practice of including a social responsibility element in marketing plans proliferates across most industries, there are many examples of companies that are doing it well, and reaping the rewards. Incorporating such a strategy doesn’t happen overnight however. It takes significant planning, commitment, thought, and most of all, research. The bottom line is that, much in the same way organizations have to prepare to market their products, companies also need to fully understand their constituencies and what motivates them before they can choose the right CSM program and execution. If for example a company specialized in the manufacture of shotguns for duck hunting purposes, chose a CSM plan that helped to preserve the wetlands so
future generations had a place to hunt ducks, the initiative would probably be fairly well received and successful with all segments of their stakeholders. If on the other hand, they chose to replace the wetlands with a retirement village so that old people could have a nice place to spend their twilight years, it probably would do them more harm than good. Even though the retirement village scenario represents a good cause, it doesn’t mesh with the company’s business and most likely wouldn’t resonate with the stakeholders.
If a company is willing to do the required research and investigation so that the potential CSM program they choose fits with their brand and resonates with their consumers, they have a great chance of seeing a marked positive impact on both brand equity and potentially profits as well.
References:
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