HESM 006 strategic management control.pptx

strategic control

1. HESM 2404 CORPORATE COMMUNICATION STRATEGY 006 CORPORATE SOCIAL RESPONSIBILITY

2. Corporate social responsibility (CSR) is an useful tool for companies to engage in environmental and social projects and is, moreover, an effective marketing tool which gains more and more popularity within companies. However, CSR communication is a difficult undertaking because it bears a variety of threats and opportunities. For this reason the right CSR communication strategy is essential to effectively influence consumer attitude and behavior . At the heart, Corporate Social Responsibility (CSR) is how corporations interact with the world around them. Large companies are not only expected to carry out work and provide opportunities but also share social responsibilities with communities. 

3. CSR theories Many different theories have been presented during the years that research has been conducted on CSR. The first theories were discussed in the 1950s and 1960s based on the book “Social Responsibilities of a Businessman” written by Howard Bowen in 1953. These 24 studies seem to be the first research made on the relationship between corporations and society , even though it had been discussed to some extent earlier. (Min-Dong, 2008, p.56) During the 1970s the focus shifted towards a debate about how CSR could be less controversial by discussing the advantages with CSR to the stockholders as well. Now it was claimed that a socially minded corporation was positively linked to the stockholders’ longterm interests. ( Wallich and McGowan, 1970 in Min-Dong, 2008, p.59)

4. Six different strategy components and how CSR may be implemented in the components; 1. The first component, mission, is described as a statement of intent for the company . ( Galbreath , 2008, p.113) When creating a mission statement it is important for companies to remember that not all social issues are possible to consider for one company ( Sethi , 2003 in Galbreath , 2008, p. 114) but rather the purpose of a mission is to know what to do as well as what to not do (Porter, 1996 in Galbreath , 2008, p.114 ) To build CSR successfully into a corporate mission it is vital to consider what the company is trying to achieve with the mission ( Galbreath , 2008, pp.113-115).

5. 2. The second component involves the strategic issues a company may face. Knowing and understanding the environment where the company is operating is a crucial part of the company strategy. To be able to create a successful mission companies need to properly examine the surroundings through both research and medial sources . ( Galbreath , 2008, pp.115-116) 3. Strategy component number three, markets, is explained by Kotler and Armstrong as consisting of “the set of all actual and potential buyers of a product or service” (Kotler and Armstrong, 2005 in Galbreath , 2008, p.116). One step towards finding the targeted customers is to segment the market. To understand the characteristics of the targeted market and successfully combine CSR with company strategy it is crucial to look at the social dynamics variable. This variable explains which factors that are important and valuable to specific target groups. By understanding the segment the company will easier fulfill customers’ needs and be able to implement CSR in ways that are appreciated by the segment. ( Galbreath , 2008, p.116)

6. 4. Component number four is customer needs which are one important strategic function for companies to interpret. With the highly increased discussions regarding social related issues customer needs have changed over the years. Research shows that analyzing and understanding unmet social needs that customers have seems to be almost as important as understanding traditional factors such as age, income and so on . ( Galbreath , 2008, p.117 ). 5. The fifth component is resources. To create a strategy that is appropriate with the needs customers have it is important that the companies internal resources are able to fill these needs. ( Galbreath , 2008, p.118) It is important that companies carefully choose which specific resources that are needed to create a successful and unique CSR strategy that distinguish from competitors (Porter, 1985 in Galbreath , 2008, p.118) By doing this not only will the company take their social responsibility but also gain from it ( Galbreath , 2008, p. 118)

7. 6. The last strategy dimension is competitive advantage which is how companies earn superior performance compared to their competitors. The emphasis should be to offer socially complex resources that are difficult to imitate in order to create long-term relationships with customers. One possible way to create such a resource is through the practice of responsible management with the firm’s stakeholders by, as mentioned, offering solutions to unmet needs or social needs. ( Galbreath , 2008, pp.118-120)

8. context of strategy

9. Discussion ABC Corporation is a large multinational corporation that operates in several industries, including consumer electronics, healthcare, and automotive. As a leading player in its respective industries, ABC Corporation recognizes that it has a responsibility to be a good corporate citizen and to make a positive societal impact. What are some of the ways ABC Corporation can engage with its various stakeholders (e.g., customers, employees, suppliers, communities, investors) in its CSR initiatives? What challenges can ABC Corporation face in implementing its CSR initiatives, and how can it addresses these challenges? What role have leaders play in driving CSR initiatives within the company?

10. Four Dimensions of Social Responsibility 1. Voluntary responsibilities: Being a “good corporate citizen”; contributing to the community and quality of life 2. Ethical responsibilities: Being ethical; doing what is right, just, and fair; avoiding harm 3. Legal responsibilities: Obeying the law (society’s codification of right and wrong); playing by the rules of the game 4. Economic responsibilities: Being profitable

11. Corporate citizenship is the extent to which businesses meet the legal, ethical, economic, and voluntary responsibilities placed on them by their stakeholders 1. Commitment to corporate citizenship indicates a strategic focus on fulfilling the social responsibilities expected of it by its stakeholders 2. Involves action and measurement of the extent to which a firm embraces corporate citizenship philosophy and following through by implementing appropriate initiatives

12. CSR communication is a process of anticipating stakeholders’ expectations and articulating CSR policies and other programs. It involves providing true and transparent information about the integration of a company’s business operations, social and environmental concerns, and interactions with stakeholders.  Today, companies use different avenues, such as social media, advertisements, product labels, media relations, CSR reports, and websites to communicate CSR practices. For instance, social media is currently one of the most important and powerful communication channels, providing great opportunities to interact with stakeholders and maintain permanent relationships. While social media, advertising and public relations are considered to be open communication, CSR reports and websites are considered to be subtle/closed communication. 

13. Communication boosts CSR Despite multiple approaches, there is still a low understanding of the importance of communicating CSR activities. In this article, we elaborate on six reasons why communication plays a role to boost CSR initiatives. 1. Promotes transparency Companies are often fearful of communicating on controversial issues or promoting initiatives for fear of becoming a negative target. A commitment to transparency can appease even the sharpest of critics and help build long-term relationships. Increased disclosure around a practice – even one that needs improvement – can prevent shareholder disputes and enable a company to hold strong on its narrative.

14. 2. Earns trust and credibility Regularly communicating CSR practices, helps the audience and stakeholders gain trust in the initiative. This includes sharing reports, regular updates, impact numbers, human interest stories, and more. When companies demonstrate that they are a brand committed to helping others, they build trust and connect with target audiences on a human and community level. 3. Increases awareness A lack of awareness about CSR initiatives is a major limiting factor in a company’s expansion and growth plan. For audiences to engage and render positive outcomes for a company, they must be aware of the company’s CSR engagement. Communicating CSR initiatives through various strategies, it is more likely for the project and company to grow.

15. 4. Ensures consistency Inconsistent CSR communications do more harm than good. Too much or too little communication can create scepticism among your constituents. The key is determining the right amount for your company, audiences and channels, and committing to it . The right amount of communication will keep the target audience engaged, updated on current happenings, and encouraged to continue following your work. 5. Creates a positive impact One surefire way to spark a response or stir the emotions of your audience is through good communication strategies. This can be through photographs, videos, or stories. By sharing such information relevant to CSR initiatives, corporates have a higher chance of evoking an emotional response in a person. Emotional responses encourage the audience to share information with others and create visibility for the organization.

16. 6. Increased brand loyalty  CSR communication helps to develop a long-term brand image of a company. When companies genuinely engage in CSR activities and communicate clearly, they reap the benefits of their good deeds including increased brand awareness. Gaining exposure and being recognized by potential customers, even globally is increasingly important in today’s digital era.  Taking steps beyond the annual CSR report is the next big step for companies that want to build trust and create advocacy. By communicating CSR efforts corporates can demonstrate they are truly committed to social responsibility and stay accountable to employees, stakeholders and customers. 

17. Types of CSR programs can be classified as Community Development (CD); and as Relations Development (RD). The objectives of the CSR programs (CD & RD) are: The enforcement of the local human resources (students and youngsters are included); The enforcement of the social economy surrounding the operational locations; The development of general/community facilities; The development of public health ; Other social-cultural development. CSR programs can be in the form of labor recruitment by employing the surrounding community. A CSR program can also be in the form of building a pleasant working environment amongst the workers; especially when the labors can be involved in activities which they believe will bring benefits to the broader community whether in saving a part of their salary, financial collection or volunteering working for the community.

18. The benefits of corporate social responsibility to the corporation are among others: Building reputation, Building corporate image , Strengthening corporate brand, Developing corporative activities with stakeholders, Differencing the corporation from its competitor, Producing innovation and learning in building corporate influences, Opening the access for investing and paying costs for the corporation,Elevating share price.

19. It is the job of communications department to create a proper CSR report which must be mindful of the company’s achievements, and the people who will read it like employees, clients, NGOs, shareholders. The report can then be shared with all the stakeholders through e-mailers, internal communications, newsletters, etc. Yes, it is imperative this gets talked about. This helps in building the company’s social image amongst employees, amongst clients, competitors, in their respective industry, investors, basically amongst all the various stakeholders, who are in any way connected to the company.

20. Public Relations, as a tool of communication, is the vehicle that enlightens and shares with the world the progress made by companies who are successfully embracing the strategic and integrated nature of CSR. But this must be undertaken very cautiously. If the organisations try and publicise their CSR achievements aggressively with the aim to use it as a marketing tool, there is a risk of them achieving the exact opposite result from what was intended. When and if this happens, i.e., when CSR is seen and utilised as fixing a reputation issue or as a PR fix,  this PR becomes tantamount to result in negative publicity for the concerned company. Hence, although this does need to be publicised , this needs to be done with extra caution without appearing too desperate.

21. The communication resource of a company resides in a unique position characterised by sound knowledge of the variable needs of stakeholders, and with the 24/7 information flow for social media, the online blog space, and the compelling mandate for social reporting, he/she needs to be adept with technologies and various channels of communication. The communicator should lightly handle CSR initiatives until the program gains momentum. They must ensure that their message is low-key and less promotional, based on factual information and transparent without intentional omissions. By employing more controlled and interpersonal media channels such as corporate websites and face-to-face promotional events, the communication professional can leverage CSR activities to be relevant to external stakeholders .

22. Corporate Social Responsibility is all about smart business actions and constant improvement while building integrity. The communicators must report these actions and events as and when they occur, this is important. However, the danger occurs only when the showcasing precedes the actual work and is used as a marketing tool.