Post on 08-Apr-2015
Jakarta CMO ClubWednesday, 26th March 2008
Corporate Social Responsibility (CSR)
What is CSR?What are the costs of not having CSR?What are the benefits of CSR?What are the types of CSR?How to decide what CSR to engage in and how much is enough?
“Corporate Social Responsibility is a commitment to improve community well-being through discretionary business practices and corporate resources.”
Philip Kotler and Nancy Lee, “Corporate Social Responsibility,” Wiley, 2007
With Nancy Lee at Kotler’s 75th Birthday celebrations in Kellogg, Aug 7, 2006
With Philip Kotler, Hermawan, Michael and Ariana at Kotler’s birthday celebrations in Kellogg, Aug 2006
“Corporate Social Responsibility is a commitment to improve community well-being through discretionary business practices and corporate resources.”
Philip Kotler and Nancy Lee, “Corporate Social Responsibility,” Wiley, 2007
Basic Business PhilosophyBasic Business Philosophy
Basic Business PhilosophyBasic Business PhilosophySeven Principles
Contribution to SocietyFairness and HonestyCooperation and team SpiritUntiring Effort for ImprovementCourtesy and HumilityAdaptabilityGratitude
Profit is the reward and measure of contribution to society
states the codes of conduct for employees in their daily work
Companies that got into trouble due to CSR issues
Dasani mineral water (part of Coca-Cola)
McDonald’s was forced to withdraw an advert that claimed that after selecting its potatoes, “we peel them, slice them, fry them and that’s it.”
McDonald’s was forced to withdraw an advert that claimed that after selecting its potatoes, “we peel them, slice them, fry them and that’s it.”
This omitted par-frying the chips, freezing them, adding a dextrose solution and salt.
CSR examples
IBM UK
Reinventing Education Partnership programme
Interactions and sharing of knowledge through a web-based technology - the “Learning Village” software.
Culture of openness and sharing of good practice
Avon
– a partnership with Breakthrough Breast Cancer, and its Breast Cancer Crusade has raised over 10 million pounds since its launch 12 years ago.
Community
SociallyResponsible
Corp SocialMarketing
Cause RelatedMarketing
CausePromotions
CorporatePhilanthropy
Volunteering
BusinessPractices
6 Options of Doing Good
Source: Philip Kotler and Nancy Lee, Corporate Social Responsibility.
What are the types of CSR?
Provides funds, in-kind contributions, or other organization resources to increase awareness and concern about a social cause
Cause Promotions
Option 1: Cause Promotions
MTV – Staying Alive Campaign Example
Cause promotions
Commits to making a contribution or donating a percentage of
revenues to a specific cause based on product sales
e.g. donate 10% of the price of each product sold
Cause related marketing
Option 2: Cause Related Marketing
RED Campaign Example
It is the first time that the world’s leading companies have made a commitment to channel a portion of their profits from sales of specially–designed products to the Global Fund to support AIDS programmes for women and children in Africa."
Cause related marketing
Supports the development and/or implementation of a behavior
change campaign
Social Marketing
Anti-Smoking Campaign
Social Marketing
Makes a direct contribution to a charity or cause, most often in the
form of cash grant, donations, and/or in-kind service
Corporate Philanthropy
Warren Buffett Example
Corporate Philanthropy
Supports and encourages employees, retail partners, and/or franchise members to volunteer
their time to support local community organization and
causes
Community Volunteering
Option 5: Community VolunteeringGE Volunteers Example
Adopts and conducts discretionary business practices and
investments that support social causes to improve community well-being and protect the environment
e.g. community trade, environmental friendly process
Socially responsible business practices
The Body Shop Example
Socially responsible business practices
Jakarta CMO ClubWednesday, 26th March 2008
Corporate Social Responsibility (CSR)
What is CSR?What are the costs of not having CSR?What are the benefits of CSR?What are the types of CSR?How to decide what CSR to engage in and how much is enough?
1
Peace and Fulfilment of Humankind's Potential
W.O.W!
Take Good Care of the Environment and the Community;
The Community and the Environment will take good care of you
Future Leaders Series:
Corporate Social Responsibility
Talk given to the Nanyang Fellows, Nanyang Business School, Nanyang Technological University by Pak Kuntoro Mangkusubroto
2005
Philip KotlerSC Johnson Distinguished Professor
of International MarketingKellogg School of Management
Northwestern University
Hermawan KartajayaPresident
World Marketing AssociationPresident
MarkPlus Inc
Hooi Den HuanVice-Dean (Corporate Services)
Nanyang Business SchoolNanyang Technological UniversityInternational Advisor, SBM, ITB