CSR AND SUSTAINABLE PRACTICES NEED TO BE ASSOCIATED TO COMMUNICATION AND MARKETING STRATEGIES IN ORDER TO CREATE VALUE OUT OF IT (CSR LEADING TO CFP)

Today is a recap of what has been covered until now

CRM: corporate promise to donate a certain amount of money to a cause when a service/product is purchased

Ads with cause-related message more effective undependently of the cause (cause fitting the brand or not) - brand-cause fit

Show experiment in the article and other examples

CSR used as a way to gain competitive advantage not related to the product attributes or its price. No head-to-head with the competitors

Article encouraging the direct participation of consumers rather than raising their awareness (take example)

Creation of business value is an outcome of creating social value - no need to hide a business strategy in that case. As seen with Dutch pharmaceutical company Royal DSM

Tailor activities to specific consumer segments (show case p.20)

Stakeholder theory defining a business as an open and flexible system made of diverse actors and active in a network of relationships with various other actors

The concept of stakeholder intelligence p.11-12

A CSR message to be effective needs to be endorsed by a third party.

2 inter-related processes: "giving sense" and "making sense" (example of Novo Nordisk)

Creation of shared value

Brand equity: the value of the brand itself

CSR perception positively influences brand equity

The higher the marketing capabilities the more positive the CSR perception - intro to next slide

CSR only will not create value, it has to be relayed by a relevant marketing capability.

Look at the conclusion of the article. CFO DOUBTING ABOUT THE RETURN IS UP TO 50%

CSR yet to be fully seen as part of a marketing strategy

Necessity to design CSR efforts with verifiable benefits to key stakeholders - going away from community-based charity to focus more on identifying stakeholders that will leverage value.

Link to Video: https://www.youtube.com/watch?v=fnwB7UcsG0A

In 2013 more than 4000 companies were expelled from the UN GLOBAL COMPACT programme mostly due to their inability to mesasure and communicate their efforts.

The issue is not anymore if yes or no CSR is to be implemented but rather how it should be reported and made credible & visible

CSR seen as an effective way to insure a firm towards negative events that would have harmed its financial performance without a CSR approach

Potential link between CSR strength and stock market (weak CSR meaning stronger stock market decline)

CSP lowering firm systematic risk (thus creating a finance-marketing interface)

Again necessity to taylor CSR strategy to business strategies.

Using corporation expertise to address societal problems leads to self-sustaining solutions

CSR is about building shared value rather than PR or damage control. Take example H&M, IKEA, Apple, Nike, etc.

Summary: When CSR means business