CSR
Corporate Social Responsibility (CSR) is influenced by various factors that drive
organizations to adopt socially responsible practices. The five primary driving
forces of CSR are:
Regulatory and Legal Pressures: Governments and regulatory bodies often
establish laws and guidelines that compel companies to engage in socially
responsible behavior. Compliance with environmental regulations, labor laws, and
health and safety standards are common examples.
Market and Competitive Pressures: Companies often adopt CSR practices to gain
a competitive edge in the market. Customers are increasingly favoring businesses
that are environmentally friendly and socially responsible. CSR can enhance brand
reputation, attract loyal customers, and differentiate a company from its competitors.
Stakeholder Expectations: Various stakeholders, including employees, investors,
customers, suppliers, and communities, expect companies to act responsibly.
Meeting these expectations can improve stakeholder relationships and contribute to
long-term business success.
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CSR
Ethical and Moral Imperatives: Many businesses adopt CSR
initiatives based on ethical considerations and moral responsibilities.
This involves a genuine commitment to making a positive impact on
society and the environment, beyond profit motives.
Economic and Financial Pressures: Engaging in CSR can lead to
cost savings and financial benefits. For example, energy-efficient
practices can reduce operating costs, and sustainable supply chain
management can minimize risks. Additionally, socially responsible
investments are attracting more attention from investors.
These driving forces collectively influence how companies integrate CSR into their
business strategies and operations, shaping their approach to sustainability and social
responsibility. 2
Theoretical Background of Strategic CSR
1. Strategic Management
-Allignment of Corporate Strategy with Social and environmental
responsibility, in order to create long term value for both the
company and society.
2. Stakeholder Theory
-Companies have a responsibility to consider the interests of all
stakeholders, including customers, employees, suppliers,
communities and the environment which will lead to long term
success.
3. Resource based view of the Firm
Company’s resources and capabilities, including its social and
environmental performance can be the source of competitive
advantage. 3
Theoretical background of Strategic CSR
4. Institutional Theory:
Company are embedded in a broader social and cultural context,
and they need to confirm to societal norms and expectations in
order to gain legitimacy and avoid negative sanctions.
5. Legitimacy Norms:
This theory argues that companies need to earn and maintain
their social license to operate, which is based on the perception
that they are fulfilling their social responsibilities.
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Business Ethics in Product Positioning
When developing their brand positioning strategy, businesses should keep several
ethical considerations in mind. These considerations ensure that the brand positioning
aligns with the values and principles of both the business and its target audience. By
adhering to ethical practices, businesses can build trust, credibility, and long term
relationships with their customers.
Key Ethical Consideration:
1. Transparency and Honesty: Businesses should prioritize transparency and honesty
when developing their brand positioning strategy. This means being truthful about the
products, services, and values the brand represents. Avoid misleading or false claims
that can damage the brand's reputation and erode customer trust.
2. Environmental Impact: Businesses should consider the environmental impact of
their brand positioning strategy. This includes assessing the sustainability of their
products, packaging, and manufacturing processes. Ethical brands prioritize eco-
friendly practices, such as using renewable materials, reducing waste, and minimizing
their carbon footprint. 5
Business Ethics in Product Positioning
Social Responsibility: Brand positioning should reflect a commitment to social responsibility .
Businesses should consider the impact their operations have on society and strive to make
positive contributions. This can include supporting local communities, promoting diversity and
inclusion, and championing ethical labor practices across their supply chains.
Consumer privacy and Data Protection : Businesses must respect consumer privacy and
protect their data. This includes being transparent about data collection practices and obtaining
appropriate consent. Brands should also take steps to safeguard customer data from unauthorized
access or misuse, adhering to relevant data protection laws and regulations.
Fair Competition: Ethical Brand positioning involves fair competition. Businesses should avoid
engaging in deceptive tactics or unfair practices to gain an advantage over competitors. This
includes avoiding false advertising, price fixing, or monopolistic behaviour that can harm
consumers and undermine competition.
Authenticity: Consumers expect authenticity from brands. Ethical brand positioning involves
being true to the brand's values and mission. Avoiding greenwashing (making false claims about
environmental sustainability) or virtue signaling (superficial displays of social responsibility) is
crucial. Brands should strive to deliver on promises and create genuine connection with their
audience. 6
Business Ethics in Product Positioning
Respect for Intellectual Property: Businesses should respect intellectual property rights when
developing their brand positioning strategy. This includes avoiding copyright infringement,
trademark violations, or plagiarism. Respecting the creative work of others helps maintain trust
and fosters a healthy business environment.
Ethical Marketing Practices: Ethical brand positioning requires ethical marketing practices.
Businesses should avoid manipulative or exploitative marketing techniques. This includes
refraining from targeting vulnerable populations, using misleading advertising, or creating
addictive products that can harm individuals' well-being.
Employee well-being: Ethical brand positioning involves considering the well-being of
employees. Businesses should ensure fair treatment, provide a safe work environment, and offer
reasonable compensation and benefits. Ethical brands prioritize employee satisfaction,
engagement, and development.
Stakeholder Engagement: Businesses should engage with their stakeholders when developing
their brand positioning strategy. This includes seeking feedback, listening to concerns, and
involving relevant parties in decision-making processes. Ethical brands recognize the importance
of building mutually beneficial relationships with customers, employees, suppliers, and the
community. 7
Types of CSR strategy
A. Operations Driven CSR strategy (Improving Internal operations and
reducing negative impacts on the environment and society)
a. Green manufacturing
b. Supply chain sustanibility
c. Product Stewardship-Product are safe, healthy, environmentally responsible
through out product life cycle)
d. Environmental management-energy efficient technologies, reducing emissions
and conserving natural resources)
B. Compliance Driven CSR Strategy-Health & SAFETY FIRST)
a. Adhering to labor laws
b. Environmental Compliance
c. Human Rights Compliance-(child labour, forced labour and discrimination)
d. Supply Chain Compliance-ensuring that suppliers and partners comply with
social and environmental regulations and ethical standards.
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Types of CSR strategies
C. Customer Driven CSR strategies
[Link] Eco-friendly and Sustainable
[Link] in Fair Trade and ethical sourcing Practices
[Link] Community Initiatives and charities
[Link] and Honest towards customers
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Importance of Strategic CSR
1. Enhancing Brand reputation
2. Improving employee engagement
3. Reducing Risk
4. Stimulating Innovation
5. Attracting and retaining Talent
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The Five Driving Forces of CSR
1. Increased Affluence: It refers to the increase in the overall
level of economic well being and material prosperity of
individuals, households and societies over time. Consumer
with high levels of disposable income tend to be more socially
aware and are increasingly interested in purchasing products
and services from companies that align with their values.
CSR becomes more relevant as economies grow and stabilize.
Therefore, the greatest attention to CSR is found in developed
countries. Stable work and security provide the luxury of
choice and socially responsible activism. No such luxury exists
when basic needs are in question.
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The Five Driving Forces of CSR
2. Ecological Sustainability: Perhaps the most obvious and most talked about
of the drivers, concerns over pollution, waste, natural resource depletion,
climate change and the like continue to fuel the CSR discussion and heighten
expectations for proactive corporate action. After all, it is in the best interest of
firms to protect for the sustainable future the long-term availability of the
resources on which they depend.
3. Globalization: Globalization has had considerable impacts. First, the
increased wealth and power of multinational corporations has led to questions
on the decreased authority of the nation-state, especially in developing areas.
Further, cultural differences have added to the complexity of CSR as
expectations of acceptable behavior vary regionally. With increased power
comes increased responsibility and globalization has fueled the need to filter all
strategic decisions through a CSR lens to ensure optimal outcomes for diverse
stakeholders. 12
The Five Driving Forces of CSR
4. Free Flow of Information: Yes, blame the bloggers, but through the Internet
and other electronic mediums the flow of information has shifted back to the
stakeholders, especially in the case of three important groups: consumers,
NGOs and the general media. Easily accessible and affordable communication
technologies have permanently changed the game and only truly authentic and
transparent companies will profit in the long term.
5. The Power of the Brand: Brands are today the focal point of corporate
success and much of the health of the brand depends on public perception of the
corporation. In other words, reputation is key and honest CSR is a way to
protect that reputation and therefore the brand.
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Examples based on Company CSR
1. Microsoft: Working with the world food programs, save the children and
mercy corps it provides technical development assistance through the
humanitarian empowerment and response through technology. Throughout the
world the organization are using technology to spread humanitarian efforts.
2. IBM: To promote web based society, IBM makes and provides the training
material for education of web to the senior citizens. Other citizens that have
knowledge of web pass with computer knowledge.
3. AirbnbIncreasing Social Media Engagement
Released in the midst of the Syrian refugee crisis, Airbnb launched its #weaccept campaign during the Super Bowl in 2017. Over
the 30-second ad, a compilation of faces from all different skin tones are blended together. A voiceover describes the
positive impact diversity has on local communities and the world.
The CSR initiative highlighted Airbnb’s efforts to offer short-term housing for anyone in need. This included refugees, workers,
and victims fleeing natural disasters.
Despite the criticism the company received, it became the subject of a massive spike in media engagement. There were 33,000
tweets about the ad during the first half of the super bowl alone.
Airbnb made a call to action for the public, asking for volunteers to open their homes to displaced populations. They received
thousands of sign-ups as a result of the ad. Airbnb was praised online, and their social beliefs were broadcasted for
consumers to see.
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Examples based on Company CSR
Gillette Broadening The Customer Base
In a similar fashion in 2022, Gillette launched their “The Best Men Can Be” campaign.
The ad sparked a massive amount of controversy online for its references to the stereotypes of
modern-day masculinity. The tagline is a play on the company’s decades-old campaign, “The Best
A Man Can Get.” The historical campaign has primarily cultivated an image of masculinity in its
clients.
The campaign, which has over 30 million views on YouTube, has more dislikes than likes. The
internet backlash has led many to speak out about “boycotting” the brand for its illustration of men
in the ad. Thousands of negative comments below the video and negative social media posts
criticized Gillette’s overreach into the social impact sphere. At its core, Gillette used the campaign
to spark a conversation about social issues/stereotypes.
Woven into the stream of negativity, Gillette also received immense praise for speaking out on the
global stage. Regardless of opinion, the ad has led to an increase in levels of media activity and
engagement. Gillette’s campaign was an illustration of how ads can generate new audiences for
brands.
After the campaign was released, Adweek reported that it gained the largest amount of support
from women. This finding opened up a broader customer base.
This level of support from women was a first in the history of Gillette’s campaigns.
[Link] 15
Examples based on Company CSR
Ben and Jerry’s
Measuring Brand Awareness
Similarly, Ben and Jerry’s has become consistently vocal in its CSR initiative to combat climate change.
In 2016, the company released a campaign noting the social and environmental impact that a temperature
increase of two degrees has on ice cream - and the Earth.
The ad increased awareness on the topic and urged policymakers to be more proactive in fighting climate
change – a win-win for Earth, and ice cream.
Ben and Jerry’s campaign was one part of an increasing standard for suppliers to speak out on social
issues and engage in a form of corporate citizenship. This was especially true on a national scale, where
the campaigns had far more impact on society than at the global level.
This added benefit allowed Ben and Jerry’s to measure the brand awareness within the country.
[Link]
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Moral Principles of CSR
1. Accountability - Your business should look to be accountable for the impacts
of its' activities on the wider society it operates in, as well as the environment.
Taking into account any negative impact it should have on these factors, this
could well effect future practices.
This principle emphasises the importance of transparency and the need for
companies to take responsibility for their actions.
2. Transparency - The CSR policies, activities, and impacts your business
undertakes may be considered need-to-know information. You should
communicate this information with your stakeholders.
This principle highlights the importance of open communication and the need
for companies to be honest and forthright about their CSR activities. The
thought process being that if you're acting in an ethical manner, there should be
nothing to hide regarding your day to day operations.
3. Ethical behaviour - Your business should conduct its business in an ethical
and responsible manner, and should uphold high standards of integrity.
This principle emphasizes the importance of doing the right thing and17 treating
others with respect and fairness.
Moral Principles of CSR
4. Respect for your stakeholder's interests - Your business should take into account the
interests of its' stakeholders. This includes your employees, customers, suppliers,
communities, and the environment, and should strive to create value for them.
This principle emphasises the importance of building relationships with your stakeholders
that will last and working collaboratively to achieve shared goals.
5. Respect for the rule of law - Although this may be obvious, your business should comply
with applicable laws and regulations, while respecting human rights and labor standards.
This principle emphasises the importance of following the law and respecting basic human
rights.
6. Respect for international norms - Your business should respect international norms and
standards, including those relating to human rights, labor, and the environment. The area you
choose to operate within, be sure to respect the area & it's custom.
This principle emphasises the importance of being a responsible global citizen and following
international best practices.
7. Respect for human rights - Your business should respect human rights, and should not
engage in business practices that violate any rights of individuals or groups.
This principle emphasizes the importance of treating all individuals with dignity and respect,
regardless of their background or circumstances.
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CSR Problems and prospects in Nepal
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CSR Problems and prospects in Nepal
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CSR Problems and prospects in Nepal
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CSR Problems and prospects in Nepal
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CSR problems and Prospects in Nepal
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CSR Problems and prospects in Nepal
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