Corporate Social Responsiblity: Customers Buy It, Employees Sell It

Customers now expect your business to be socially responsible, but the customer isn't the starting point for these programs - your employees are. So says Carol Cone of Edelman....

For the past four years, Edelman, a leading global PR firm, has published the Edelman goodpurpose® Study. This year, the study landed with quite a splash - and it was due in no small part to Carol Cone’s much quoted sound-bite:

“Cause-related marketing, as we know it, is dead.”
But we’ll come back to that....

The New Normal

First, some context: The findings of the Edelman study indicate that issues such as social responsibility, sustainability, cause marketing and employee engagement are steadily increasing in importance for corporations. The new normal has arrived.

“Nearly two-thirds of consumers feel that it is no longer enough for corporations to simply give money away to good causes, they need to integrate them into their day-to-day business”

Here’s what I want to know: what does that mean for the bottom line? “Our study shows that social purpose is still of deep interest to the public and expectations of company and brand involvement remains unwavering. In fact, seven in 10 consumers around the world say that during a recession they would remain loyal to a brand if it supports a good cause.”

Wait a minute, isn’t “remaining loyal” in this way just...philanthropy?

Nope.

The Citizen Consumer

“Nearly two-thirds of consumers feel that it is no longer enough for corporations to simply give money away to good causes, they need to integrate them into their day-to-day business”. Which brings us back to Carol Cone’s choice quote: “Cause-related marketing as we know it, is dead.  It is no longer enough to slap a ribbon on a product.  Americans seek deeper involvement in social issues and expect brands and companies to provide various means of engagement…we call this the rise of the ‘citizen consumer.’”

So...does this mean that when companies find a meaningful cause, integrate it into their core business offerings and then become transparent about these efforts “citizen consumers” will knock down the doors to buy their stuff?

When I posed that very question to Carol Cone, she admitted there is precious little evidence to demonstrate behavioral change around purchasing. Point being: the study covers intentions and attitudes. It does not monitor actual purchase decisions.

The Truth About CSR

I should probably admit something at this point...my question to Ms.Cone was probably dumb. Here’s why:

Corporate social responsibility is not a short-term marketing scheme to sell more socks. That would be a complete misunderstanding of CSR. When a paradigm shifts we often try to take what we know and apply it to the new reality. That’s normal....but it doesn’t work.

CSR is not about marketing products and services. Rather, it’s about building relationships between brands and consumers based on the very qualities that make relationships good or bad in our personal lives. CSR is about trust, authenticity, good behavior and social norms. Carol’s assessment that “cause-related marketing is dead” communicates a clear understanding of this new reality. The citizen consumer is a partner with the corporation with both working towards a shared goal - namely, a healthy and whole people and planet. The means for this cooperation to work is by everyone getting what they personally need out of the arrangement. Business makes money and consumers have access to products and services that offer solutions to every day dilemmas.

So, I guess companies with stellar CSR programs will automatically be more successful than other companies right?

Ehh....not necesarily.

The Power of the Employee

A recent study by the University of Maryland and Sage Publications “Doing Good and Doing Better Despite Negative Information? The Role of Corporate Social Responsibility in Consumer Resistance to Negative Information”. It’s a dense academic research paper that offers scholarly assessment. The bottom line? CSR will help when it comes to CSR related issues. But if a company produces inferior products or services they’re still screwed. Duh.

So where can companies see the biggest gains from their CSR efforts? As we continued our conversation, Carol told me she thinks companies should be “building their brands from the inside out.” She continued, “The most important brand is the employee brand.” (I was grinning on the other end of the phone.)

Employees play a pivotal role when it comes to building authentic relationships with stakeholders. In many cases, however, employees know little to nothing of a corporation’s CSR efforts. If companies want to be seen as authentic, they need to include employees in their activities and communications (story telling).

Mitch Markson, Chief Creative Officer of Edelman and founder of Edelman goodpurpose offers a great example of how to do this well. He believes, “There is no one killer cause. And there are more examples, like Pepsi Refresh and American Express’ Members project, that allow consumers to source or choose their own causes.  This isn’t just about the company and the cause.  It’s about a brand or company being a catalyst for causes; it’s brand as catalyst – not brand as hero.  It’s about companies facilitating something that your customers and employees can get involved in, it’s a co-creation movement.”

Markson identifies the recent Levi's campaign as a good example of this kind of thinking. The Levi’s project "Ready to Work," addressed the town of Braddock, Pennsylvania which had been hit hard by the recession. "Real People + Real Work = Real Change," is the slogan of an initiative that refurbished Braddock's community center and supports the town's urban farm, which supplies produce to locals at reduced cost.

Watch the following video for more information about how this works.

Chris Jarvis & Angela Parker

c: 317-371-4435 | chrisjarvis@realizedworth.com

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Corporate Social Responsiblity: Customers Buy It, Employees Sell It