New Age of Cause Marketing - Case Study Example

Name: XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Institution: XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Professor: XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Course: XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Date: XXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXXX Corporate social responsibility Social responsibility activities within the industrial investors globally have gained much influence and seem to control the way business is run on daily basis. Currently it is one of the major contested topics among managers globally Bert (2008 pg 51). Many leading companies have moved from identifying Social Responsibility (SR) activities as philanthropic cause to making it one of the core pillars of their designed strategic decision-making process, and to many involved social responsibility work as their basis for a sustainable business explorer, on modalities of social responsibility working out a critical long term business lever for success. Their trends reportedly indicating an increasingly integrated practice among the modern business a move that has seen the activities referred to as responsible sustainability Bert (2008 pg 53). The noble idea by the corporate investors is one designed concepts that is prone to evolve in regards to social, economical and the environmental concerns, as it is determined by values, culture of the society, and operations in transparent and accountable manner hence establishing better practices within the firm. The CRS policies works as a integrated self-regulatory mechanism whereby business monitor and ensure the policy is adhered to actively through the spirit of law, moral standards and the international norms. The objectives of CRS targets at embracing responsibilities for the firm’s actions, the policies are put in place to encourage impacts as it influences activities on environment settings, consumers, employees, societies, stakeholder and all other members of the public globe (Sankar & Korschun, 2006 pg 23). According to reports by Beaudoin (2009 pg 31), to him corporate social responsibility is designed to aid an organization’s mission and play a roll in guiding on what the firm stands for and work towards upholding to its consumers increased demands on the business ethics. Developing business ethics is one key issue of applied ethics that examines ethical principles with the aim of immediate eradication of the moral or ethical problems that may arise from the business environment. On the international seen ISO 26000 marks the recognition of the international standard for CRS. Their several contexts by united state over the corporate social responsiveness rather than corporate social responsibility, the implication of responsibility in the case is that process of purely assuming an obligation. Study by Bert (2008 pg 56) reveals that the CRS elements emphasizes on motivations rather than performance, but the claims is such motivation is not enough since responding to social demands much more than the firms decision on what to be done thus remaining the management task on doing what one has to do which is asocial responsiveness. On the contrary, managers should practice the notion of social responsibility before working on other modalities that involves decisions on what to be done. Once the act is initiated the firms’ management has no option but to respond, the social motivation immediately influences the mangers into social responsiveness. The other mode of approach achieved by CSR is to integrate the CSR strategy openly into the firm’s business strategy. The CSR may be entrenched in the HR business development. The acts of social responsibility are practices done basically to influence societies positively in which the firm exists. The main focus of CSR is on the ecological and financial achievement of the company. Like in India there is relevance social responsive acts increment that has been achieved as a result of business involvement. Many business practitioners here believes on the fact that business success is partly achieved through frequent participation in the human and social needs in the society it trades in. Due to the influence associated to CSR, it has created corporations needs emerging as one of the world’s foundations of the contemporary society. Having these increased powers has resulted in to intensified demands for social responsibility as argued by (Beaudoin, 2009 pg 24). Wilson father affirms on issues of CSR as the activities associated and status related to this noble act is referred to as societal obligations. The concept currently is well embraced in many business practices and is obvious that if has influenced customers’ perception as they almost expect companies to work on social responsibility in their locality. In India their examples of the Multinational Companies as reported by Raj Kumar (2008 pg 39), which offer services in more than one country, managing production activities among other services. Globalization and increased development of other new markets accounts in the last decade further hiked the multinational and investment houses for a rival in both the domestic and international markets, reports indicate a bout 90% of the companies currently resorted to have explicit CSR initiatives for them to be accommodated in a highly contested markets globally. Carbon house Climate alteration is a critical issue facing businesses in today’s world, therefore a number of policies have so far been fortified to promote this. Such include: national green house and energy reporting, renewable energy target e.g. electricity, energy saving programs, water and energy saving actions plans. Other potential issues include the introduction of carbon tax pose a set back to current businesses (Bert, 2008 pg 56). Moreover taking action on climate changes gives businesses a new face which decreases expenditures in the escalating fuel prices and electricity costs. Apart from that stakeholders are also ensure a comprehensive differentiation. To enhance carbon effects mitigations sustainable solutions have so far been engineered to counter this. Hence bodies have been structured to engage in innovative energy sources, water and waste management projects (Sankar & Korschun, 2006 pg 50). CSR and marketing Branding has become the most significant considerable strategic differentiating activities in a company’s munitions store. In future, the only trademark that can forge a durable psychological bond between itself and other players that involves suppliers, employees and the shareholders will correspond to the real source of competitive advantages place in the social interaction through strategic corporate social activities in the society, basing on arguments made by Chouek (2009 pg 43), to him the CSR marks the future of marketing. Their claims in his findings that support CSR play in corporate branding, the role of branding as whole remains vital when it regards selling products in commercial marketplace in a theme that is relevant as it appeals sensibility of modern consumers. Thus serving as valuable influencer in the market, CSR can therefore be used as a tool by markets in the organization to sell there brand with equal elegance and commercial effectiveness (Sankar & Korschun, 2006 pg 56). A new era in regards to social consciousness has evolved over the years across the world. Creation of the CSR has cultivated culture in the customers shifting from functionally centric strategies in branding to emotional centric brands and further to the values-centric brands. Currently branding has to carry an inspirational value in a socially responsible way. Unlike to the old traditional brand marketing, CSR today serves as an intangible asset for the firm, this is only through when it is tactically deployed, as it can be marketed not only to customers but also to its potential stakeholders. The measures of elusive assets and their reliance are growing more importantly. The carbon company in this sense can use CSR as a mode of burnishing its image in the society, generate a compatible brand and increase worker devotion. The era of global competition is here to stay, the declining trade name differentiation and with an increase in media clutter, has prompted many companies to work beyond the predictable marketing mix in a move to fit in corporate-level indefinable assets such as the identity and firm reputation as well work on the goodwill associated with serving as a good citizen into the market initiatives in an effort of gaining and maintaining a sustainable competitive advantages in the market. According to claims made by Rashid and Ibrahim (2002 pg 46), there are benefits associated in the company’s success if it considered practicing social responsibility, not only in enhancing its name with the public, the social action programs develops a positive public representation. In years back CSR worked as formality. The functions run in organizations just to create presence rather than having being objective in creating material deference in a given society. However, the circumstances have since been changed. This has been effected due to public claims that requires that companies remain fully responsible for roles and areas which they posses direct control. These may include providing quality products at a fairly cheap prices, work on operations that are environmental friendly, treat employees free of discrimination based on gender, race or even religion. The immediate implication comes through benefits of CSR, companies has to be involved hard work that concerns raising awareness levels. Reactions of consumers to CSR remain a clear indication on favoring effects on a range of cognitive and effective such as attributions, identification among others (Martin, 2002 pg 67). With the help of CSR, the social brand capital creates a loyalty value that a stakeholder attributes due to obligation in the environmental causes. It creates a transparent supply chain system while fostering dialogue with their customers. The organization develops openness through building trust which will then translate into transactions, that further enhances investor value in the market it serves (Bert, 2008 pg 56). Every firm which has just developed needs to grow and maximize its profits. For instance this firm at the eventual would ensure minimal expenditures but high income realization within its growth cycle. The firm hence would enhance product uniqueness to penetrate the market mix within the preoccupied site (Bert 2008 pg 56). Eventually this rewards the firm by ensuring its speedy growth within the market place. Hence corporate social responsibility majors on the impact on how the firm is managed and governed towards attaining its set goals. Though at times it goes to further illustrate more than management of the firm and contributes towards the attainment of broader objectives apart from the profitable ones. It hence equips impaired firms to take more roles than expected of them. Significance of Corporate social responsibility Corporate social responsibility is a vital entity in business and is the basic necessity for any goal oriented business. It is vital policy making engine which for business survival. In this event in the case of shifting market and customer likes are unpredictable adoption of CSR is necessary. It is therefore a situation whereby the firm integrates social and environmental issues in their inaction with the business stakeholders. European countries have hence embraced this move in the use of CSR. Apart from that Asian countries also use these strategies. It is comprehensive and hence absorbed easily into the system. It is easier for companies to formulate policies that can be easily understood and mainly cost effective to implement. There are various strategies that can be used to achieve CSR the practitioners in this way has many alternatives (Bert, 2008 pg 78). According to Beaudoin (2009, pg 48 ), with the rapid advancement of technology, new market demands set in every now and then. The globalised environment uses CSR to make more value to the firm. This is enhanced through rapid response to the demands from the external business world. Service delivery is improved, efficiency and productivity from good to better due to the competition that set in. with the broad market from regional to multinational innovation is develops to a multinational level to retain its reputation to potential customers. Carbon emission and corporate scandals are major issues in the industrial world i.e. 1st world countries. Investors on other hand are examining the situation with the risks ought to be taken. Investors face tough CSR policies in which they turn to index based investment to penetrate the CSR surface. Firms with quality CSR scales which are characterized by inclusion of FTSE4GOOD are able to show their target to the stakeholders. Reduction of environmental impact is economical for sustainable energy usage. Apart from that retaining of employees i.e. staff is no up hill task for such firms. CSR erodes trust in large organizations, promotes globalization of businesses and ensure sheer competitive compulsion. Hence CSR produces tangible returns through brand enhancement, strong staff motivation and boost investor confidence. Embracement of CSR is not uniform but its effects are being felt globally, firms are thus encouraged to welcome the notion. References Beaudoin, S. 2009. New Age of Cause marketing. New York: PR Newswire. Chouek, M. 2009. Marketing Week: Presentation is the lifeblood of CSR. Marketing Week , 24. Kumar, R. 2008. Promoting Corporate Social Responsibility. The Hindu , 22-23. Martin, R. 2002. Culculating the return on corporate Responsibility. harvard Business Review , pp,69-75. Sankar Sen, B. &. (2006). The Role Of Corporate Social Responsibility in strengthening multiple Stakeholder Relationships. Journal of the Ecademy of marketing Science , Vol 34. Ven, B. V.2008. An Ethical Framework for the Marketing ofCorporate Social responsibility . Journal of Business Ethics , Vol:82, 339-351. Read More