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August
25, 2003 Copyright Mediaware Infotech Pvt Ltd
"The next big thing in brands is corporate
social responsibility (it will be clever to say there may be nothing
different about our product or price, but we do behave responsibly)"
- Excerpt
from article published in The Economist
"Future mega brands will be those that tap into social changes that
are taking place"
- Sir Michael Perry, Chairman Centrica PLC (Dunlop Slazenger
Group)
CSR in Action
A Mutual Fund Co. (The Calvert Group) first demonstrated
CSR by displaying rare zeal in asking its fund managers not to invest
in companies that produced guns, cigarettes & vodka. Although the
motives are not clear, this action found instant favour with investors,
creating a positive, larger-than-life image. This in turn is reported
to have increased business with client entities who appreciated
the Mutual Fund Company's bold action.
Body Shop declared their mission to use simple, natural ingredients
harvested without harming the environment, and for the benefit of
indigenous people. Creating in the process, a brand with a legion
of followers.
HSBC, one of the largest banking & financial organizations
in the world announced a partnership with WIRE (Women in Rural Enterprise)
- to offer special business support to the local / rural community.
By helping remove some of their financial & personal barriers, the
bank enhanced its reputation in rural communities. Along with a
positive fall-out on HSBC staff who valued the WIRE-HSBC partnership
as it was perceived to be driven more by concern for rural economy
rather than profit.
What is Corporate Social Responsibility
What is CSR? Definitions abound. But let's start with a simple,
direct definition :
"CSR is a continuing commitment by business to behave ethically
and contribute to economic development while improving the quality
of life of the workforce and their families as well as of the local
community and society at large"
In practical terms, CSR is about business giving back to society
and in the process enhancing its brand equity. CSR is multi-dimensional,
touching almost every aspect. That's why when customers enter a
supermarket, they choose products with a good reputation. That's
why investors put money into companies with an exemplary record.
And that's also why a company invests in the future of its employees
to gain loyalty & commitment.
Business
today must face the new realities - after years of "winning at all
costs", businesses have created a society of super-savvy consumers.
And this is why it is imperative for brands to change over from
"winning at all costs" to "winning with integrity".
CSR involves policies & programs that match personal integrity.
Eventually it's the quality of management which becomes a key indicator
that helps build financial trust.
Perhaps this reflects in Levis withdrawal of US $ 40 million worth
of Chinese orders when China violated human rights. And Nike apologized
publicly for using child-labour to produce shoes in factories located
in China.
CSR must support the business objectives of a company, while building
relationships with key stakeholders whose opinion is most valuable,
especially during tough times. (CSR could also sometimes alter the
objectives of a company !) And CSR must ultimately reduce cost of
doing business and help maximize the brand building process.
By all accounts, the future is CSR. The future is here.
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Ad
Asia '03
That Ad Asia 2003 was a resounding success is an unanimous
conclusion. Every venue was a success – starting from selection
of venue, arrangements for delegates, line-up of speakers
and even the entertainment. The best of India was show-cased
along with the best of the world. And everything went on schedule.
With little or no chaos. All in all, it was an event to be
proud of.
Behind the scenes, it was the team led (amongst others) by
Pradeep Guha (Times of India Group) who worked relentlessly
to ensure everything was well, as it should be. The eye for
detail ensured that nothing was amiss. (Pradeep even was seen
checking that fridges at the venue were well–stocked. And
ensuring that the food was of proper quality.)
Of course, the Ad Asia '03 team work started right from getting
Diana Hayden to make the presentation (in Taipei) for India's
bid to host the 2003 event. And went right upto ensuring that
'star speakers' made it to Jaipur by using personal contacts
& equity
Media Trends wishes the Ad Asia 2003 team & Pradeep Guha even
bigger success.
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Conclusion
There are those who say that CSR "robs" shareholders, arguing that
business cannot afford to take its eyes off the ball i.e. profits.
These same people say that solving society's problems is in fact
the task of government, politicians & social workers, not business.
In short, most effective business leaders don't waste time with
CSR !.
Fact is, business needs society. Therefore, business needs to be
involved with the community in an apparently transparent manner,
maintaining accountability and investing in enhancing employee skills.
In other words, it is time businesses became better corporate citizens.
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