The Role of CSR in Marketing and Branding

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The Role of CSR in Marketing and Branding

CSR Marketing

When you bring up the idea of CSR in a room full of business executives, you're bound to get a variety of responses. Some will reveal that they actually know very little about it, while others will go on a spiel about all of the wonderful things their company is doing to better society. You'll also have those who are skeptical about the return on investment in CSR.
By one definition, "Corporate Social Responsibility is an ethical management concept where companies aim to integrate social, economic and environmental concerns along with the consideration of human rights into their business operations."
This definition is particularly relevant because it touches on just how far-reaching a CSR program can be. It's not just about partnering with an NPO or sponsoring a local charity. It's about creating tangible change – socially, economically, and environmentally.

While the underlying purpose of CSR is to advance a specific cause that benefits society, don't be fooled into thinking that it can't also have a positive impact on your own company. A strategically developed, properly implemented CSR program can directly enhance a brand's ability to create and maintain a positive image in the consumer marketplace.
Don't feel bad if you have profits on your mind whenever you approach the subject of CSR – you aren't alone. "One of the main reasons companies engage in socially responsible behavior is the possible financial gain that can come from it," management expert Timothy Creel explains. "Recent studies show that companies engaging in socially responsible behavior tend to show long-term financial gains and increases in value."

CSR is very much a long-term play, however. Companies tend to show financial losses in the first three years. It isn't until 36 or 48 months down the road that benefits begin to kick in. But when they do, the impact can be instrumental in terms of marketing and branding.

The reason why CSR builds brand equity is largely psychological. As Creel notes, "Positive feelings are related to social approval and self-respect. Brands that evoke positive feelings make customers feel better about themselves." Remember that most purchases aren't about satisfying a need. Sure, there are instances where customers need products to survive, but most purchases are rooted in wants. When a company is able to tie a purchase that is otherwise seen as non-essential to something larger than the product, customers have an easier time validating the purchase in their minds.

Another branding-related benefit of CSR is the sense of community it creates. Creel points to how Lowe's donates materials and provides volunteer hours to Habitat for Humanity, which allows the company to form connections in local communities. These connections fuel the brand's image and result in better connectivity.

Ultimately, a commitment to serving others has an impact on sales. According to a survey from Better Business Journey, 88 percent of customers say they're more likely to buy from a company that supports and engages in activities that improve society.

Source: https://smallbiztrends.com/2017/04/csr-marketing.html