BRAND SOCIAL

RESPONSIBILITY

Presented by:G.S. Monga, Hon. Professor, University of MumbaiMangesh Prasad Kasbekar, Assistant Professor, MET IOM, University of Mumbai

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(BSR)

WORLD’S MOST REPUTED COMPANIES

* FORTUNE 500

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WORLD’S MOST REPUTED COMPANIES

2011 2006 2001

Apple G.E. CitigroupGoogle FedEx G.E.Berkshire Hathaway South West Airlines Exxon MobilSouth West Airlines P&G J.P.Morgon CP&G StarBucks Verizon CommCoca Cola Jhonson & Jhonson Bank of AmericaAmazon.com Berkshire Hathaway ATGFed Ex Dell AT&TMicrosoft Toyota IBMMc Donald’s Microsoft Wal-Mart

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Top 10 Corporate Brands

Coca Cola NokiaIBM TataMicrosoft SonyGoogleLGGE SamsungMcDonald’s RILIntel Maruti UdyogNokia LICDisney Airtel

HP Titan

* Interbrand 2011 * Brand Trust Report 2011

Top 10 Global Brands Top 10 Indian Brands

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Top 10 Indian EmployersInfosys TechGoogle IndiaTCSIBMMicrosoftWiproSBIAirtelHPHDFC

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* BT-Indicus-PeopleStrong Annual Survey of India's Best Employers

CSR = BSR* * Corporations = Corporate Brands

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Why BSR?

• People talk brands. • A brand is a Promise • A brand has to be managed with responsibility

and not merely as an advertising tool. • Brands have always been a part of the

corporate social framework, with unclear roles and responsibilities

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Research Objective

• To study the relevance of Brand Social Responsibility (BSR) along with Corporate Social Responsibility in the current corporate scenario

• To study how BSR varies across cultures, and economies.

• To study an effective way of Communicating BSR across stakeholders.

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Nurturing BSR

• Developing BSR requires intensive 3Cs– Conviction– Commitment – Culture.

• Any irresponsibility results in reputational damage.

• Organisational coherence• Social Welfare of Commune

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Recession and BSR

• Recession affects :consumer wallets +

brand perception

• transparency and corporate responsibility have become far more important to consumers in a tough economy.

*Landor Associates

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BSR Varies across cultures

• Consumers in India, China and Japan react differently to socially responsible brands

90 % Indians

88% Chinese

64% Japanese think it is important to purchase products and

brands they perceive to be socially responsible * Market Global Study by PR firm Edelman

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BSR Varies across cultures

• During Recession:

84 % Indians

77% Chinese

46% Japanese will remain loyal to socially responsible brands

* Market Global Study by PR firm Edelman

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Stages of Responsibility- 360º

• Across the Value Chain

• Every Touch point

• Each Moment of Truth

• Involving Every Employee & Supply Chain player

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Brand Responsibility – Case of PACT

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Case Study of PACT

• PACT is involved in every step in the life cycle of a product they make: from the origin of its ingredients, to how its marketed, to who the audience is.

• It produces responsibly grown and manufactured organic cotton covered by “freshtastic” design- Underwears.

• Working with EarthSpark and Citizen Effect, they donate a solar-powered LED light to a Haitian family for every item ordered from their Winter Lights collection.

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Communicating BSR

• Communicating BSR is an area that needs to be explored.

• The relevant partners in a BSR dialogue need to be identified- senders and receivers, are referred collectively as stakeholders

• Internal and External stakeholders are mutually dependant on one another, presented in relation to the company.

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Communicating BSR

• Traditionally, companies have paid more attention to their internal stakeholders.

• These stakeholders’ demands and expectations may imply conflicting needs and interests.

• One way of addressing this issue is to group stakeholders with similar interests (authorities, business partners, financial actors, external influence and customer groups)

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Communicating BSR

• Among the external stakeholders, the media deserve particular attention.

• What is portrayed in media will influence internal as well as other external stakeholders that in their turn may affect others.

• Their role can be seen as ambassadors of messages and opinions.

• If a message or an opinion is stated by a strong ambassador or a trustworthy person, it is more likely that the word goes beyond the primary reader.

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The Identity- Reputation Gap Model

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Conclusion

• Building a brand is a long term effort, but destroying it, can happen overnight.

• Communication of BSR does not only create awareness for CSR and support for an image of a brand, it is also a way of creating a bond between the company and its stakeholders.

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Take Away….

brands : citizen brands doing good : doing well

“Stronger Emotional Bond”

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Take Away….

BSR can thus be the olive branch between struggling industries and consumers in cases where consumers are experiencing the highest expectations and the biggest let downs

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References:• Frankental, P., 2001. Corporate social responsibility- a PR invention?

Corporate Communications: An International Journal 6 (1), 18-23.• Johnson, H.J., 2003. Does it pay to be good? Social responsibility

and financial performance. Business Horizons 46 (6), 34-40• Kitchin, T., 2003. Corporate responsibility: A brand extension.

Journal of Brand Management 10 (4-5), 312-326. • Klein, J. and Dawar, N., 2004. Corporate social responsibility and

consumers’ attributions and brand evaluations in product-arm crisis. International Journal of Research in Marketing, 21 (3), 203-217.

• Lewis, S., 2003. Reputation and corporate responsibility. Journal of Communication Management 7 (4), 356-364.

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References:• Maio, E., 2003. Managing brand in the new stakeholder

environment. Journal of Business Ethics 44 (2/3), 235-246. • Polonsky, M.J. and Jevons, C., 2005. “Building a corporate

socially responsible brand: An investigation of issue complexity. 2005 ANZMAC Track 20, 68-74.

• Polonsky, M.J. and Jevons, C., 2005. “Building a corporate socially responsible brand: An investigation of issue complexity. 2005 ANZMAC Track 20, 68-74.

• Werther, W.B and Chandler, D., 2005. Strategic corporate social responsibility as a global brand insurance, Business Horizons, 48 (4), 317-324.

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THANK YOU

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