Now more than ever, we are starting to see companies join in their efforts towards philanthropy or some form of corporate social responsibility. Linda Novick O'Keefe writes in her article, Social Ethics: A Peek Into 2012, "In an era of global connectivity and instant media, companies increasingly view philanthropic campaigns as an intrinsic component of a successful business strategy, rather than an external obligation". Companies are becoming more aware of global conscious consumers and are reaching out to those consumers through social media sites in hopes to increase their future margins.
The American Marketing Association (AMA) defines social responsibility as "Concern for the ethical consequences of a person's or institution's acts as they might affect the interests of others. Corporate social responsibility is seriously considering the impact of the company's actions and operating in a way that balances short term profit needs with society's long term needs, thus ensuring the company's survival in a healthy environment".
Although this is a broad definition, companies are implementing marketing strategies that help to define the concept of Corporate Social Responsibility. As O'Keefe puts it, "The field is growing and changing so rapidly that its boundaries are still being drawn".
According to the Committee Encouraging Corporate Philanthropy (CECP), total corporate giving are beginning to reach those levels pre-recession era. Aggregate total giving in 2010 surpassed 2009 levels by almost 18% and 53% of companies gave more in 2010 than in 2007, before the economic crisis set in.
One of the companies on "My Top 10 Innovative & Socially Responsible companies to work for" (still working on other companies to include), is New Belgium Brewing. NBB was named Outside magazines Best Place to Work in 2008 a year in which they recycled 88% of its waste. New Belgium Brewing is the first fully wind powered brewery in the US reducing its carbon imprint by 1800 metric tons a year and obtains 100% of its electricity from renewable resources.
Besides the regular medical and dental health programs, employees get a free lunch every other week, a free massage once a year, and they can bring their children and dogs to work! Cool Huh? Employees who stay with he company for five years are given an all expensed paid trip to Belgium where they can "study beer culture". Employees also earn stock in privately held corporation granting them votes in company decisions in which the employees own 32% of the companies stock! Another cool incentive is that employees are given a fat tired cruiser bike after one year employment to help with sustainability efforts rather than driving to work. In addition, NBB sales force drive Toyota Prius hybrids provided by the company.
NBB is a great example of a company not just using a marketing strategy to leverage them as a socially responsible company, but uses a business structure that allows them to incorporate their beliefs.
Being socially responsible isn't something that can be built overnight and should be part of the corporate culture. The most important aspect of instilling corporate social responsibility involves giving around issues that relate to what the company does, employee engagement, and communication. Companies that are able to realize this will have the most to gain, building brand loyal consumers that reward companies truly making a difference.
What companies do you know of that are making a difference?
2 comments:
How do you feel about companies who do this at the expense of their company image.. Example. Chic fil a donates to 10 anti gay associations
I think that if the event or cause can be potentially damaging to their company image, it is a no brainer, don't do it. I don't know if I would consider Chic Fil A's actions something that I would personally consider damaging to their image. I think is a person to person bases, although religion does play a big fact due to the founders views. Interesting perspective Grace.
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