{"id":11620,"date":"2018-10-03T22:58:47","date_gmt":"2018-10-03T22:58:47","guid":{"rendered":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/?post_type=chapter&#038;p=11620"},"modified":"2024-05-07T16:28:54","modified_gmt":"2024-05-07T16:28:54","slug":"examples-of-corporate-social-responsibility","status":"publish","type":"chapter","link":"https:\/\/courses.lumenlearning.com\/wm-introductiontobusiness\/chapter\/examples-of-corporate-social-responsibility\/","title":{"raw":"Examples of Corporate Social Responsibility","rendered":"Examples of Corporate Social Responsibility"},"content":{"raw":"<div class=\"textbox learning-objectives\">\r\n<h3>Learning Outcomes<\/h3>\r\n<ul>\r\n \t<li>Give examples of corporate social responsibility<\/li>\r\n<\/ul>\r\n<\/div>\r\n<span style=\"color: #333333;\">Not all companies approach CSR in the same way. Their approach depends upon their resources, available assets, and corporate culture. In addition,\u00a0some companies perceive more benefit from one type of CSR than another. The personal beliefs and priorities of senior management\/ownership can also influence the company's approach to social responsibility. Below are some different approaches to CSR.\u00a0<\/span>\r\n<h2>Corporate Philanthropy<\/h2>\r\nCorporate philanthropy refers to a corporation\u2019s gifts to charitable organizations. There is an implication that the corporation\u2019s donations have no strings attached, which is probably quite rare. At a minimum, most corporations expect that their donations will be publicly attributed to the corporation, thus generating positive public relations. When corporations make large cash gifts to universities or museums, they are usually rewarded with a plaque or with a building or library named after the donor. Such attributions burnish the corporation\u2019s public image, and in such cases we are not dealing with true corporate philanthropy, strictly speaking, but something more in the nature of marketing or public relations.\r\n<h2>Cause-Related Marketing<\/h2>\r\nCause-related marketing (CRM) refers to a corporation\u2019s associating the sales of its products to a program of donations or support for a charitable or civic organization. An example is provided by the famous Red campaign, in which corporations such as Nike and Gap pledged to contribute profits from the sale of certain red-colored products to a program for African development and alleviation of AIDS-related social problems. The basic idea of cause-related marketing is that the corporation markets its brand at the same time that it promotes awareness of the given social problem or civic organization that addresses the social problem. Another well-known example is the pink ribbon symbol that promotes breast-cancer awareness and is used prominently in the marketing of special lines of products by many corporations, such as Est\u00e9e Lauder, Avon, New Balance, and <em>Self Magazine<\/em>. In addition to marketing products with the pink-ribbon symbol, Est\u00e9e Lauder has made support for breast cancer awareness one of the defining features of its corporate philanthropy. Thus, Est\u00e9e Lauder also frequently refers to such charitable contributions, currently on the order of $150 million, in its corporate communications and public relations documents.\r\n<h2>Sustainability<\/h2>\r\nSustainability has become such an important concept that it is frequently used interchangeably\u00a0with CSR. Indeed, for some companies, it seems that CSR is sustainability. This is perhaps not surprising, given the growing media attention on issues related to sustainability.\r\n\r\n<strong>Sustainability<\/strong> is a concept derived from environmentalism; it originally referred to the ability of a society or company to continue to operate without compromising the planet\u2019s environmental condition in the future. In other words, a sustainable corporation is one that can sustain its current activities without adding to the world\u2019s environmental problems. Sustainability is therefore a very challenging goal, and many environmentalists maintain that no corporation today operates sustainably, since all use energy (leading to the gradual depletion of fossil fuels while emitting greenhouse gases) and all produce waste products like garbage and industrial chemicals. Whether or not true sustainability will be attainable anytime in the near future, the development and promotion of sustainability strategies has become virtually an obsession of most large corporations today, as their websites will attest in their inevitable reference to the corporation\u2019s sincere commitment to sustainability and responsible environmental practices. No corporation or corporate executive today will be heard to say that they do not really care about the environment. However, if we observe their actions rather than their words, we may have cause for doubt.\r\n<h2>Social Entrepreneurship and Social Enterprise<\/h2>\r\n<strong>Social entrepreneurship<\/strong> and social enterprise refer to the use of business organizations and techniques to attain laudable social goals. As we'll discuss further in the next reading, Blake Mycoskie decided to create TOMS Shoes largely as a reaction to his travels in Argentina, which had exposed him to terrible poverty that left many school-age children without shoes. An important part of the corporate mission of TOMS Shoes lies in its pledge to give away a free pair of shoes for every pair purchased by a customer. TOMS Shoes\u2019 model has been imitated by many others, including the popular online eyewear brand, Warby Parker.\r\n\r\nThe difference between social entrepreneurship and CSR is that, with social entrepreneurship, the positive social impact is built into the mission of the company from its founding. Other examples of social entrepreneurship include The Body Shop, Ben &amp; Jerry\u2019s ice cream, and Newman\u2019s Own. The Body Shop was founded by noted activist Anita Roddick, who insisted that all products be derived from ingredients that\u00a0were natural, organic, and responsibly sourced. Her employment policies famously allowed every employee to take off one day a month from work to engage in social or community projects. Similarly, Ben &amp; Jerry\u2019s was founded to promote the use of organic, locally-produced food. The company\u2019s founders insisted on a policy that executives earn no more than seven times the salary of factory line-workers (although this policy was eventually relaxed when it became difficult to recruit a competent CEO at those wages). Ben &amp; Jerry\u2019s engaged in a number of high-profile political activities in which they encouraged their employees to participate, such as protesting the building of the Seabrook nuclear power plant in New Hampshire. Newman\u2019s Own was founded by film actor Paul Newman and his friend A. E. Hotchner with the goal of selling wholesome products and giving away 100 percent of the profits to charitable ventures. To date, Newman\u2019s Own has given away more than\u00a0two hundred million dollars.\r\n<h2>Social Marketing<\/h2>\r\n<strong>Social marketing<\/strong> refers to the use of business marketing techniques in the pursuit of social goals. Often, governments and nonprofit organizations make use of social marketing to make their points more forcefully and effectively to a wide audience. Classic examples are the extremely powerful TV commercials warning of the dangers of unsafe driving or of failing to use seat belts. Cinematic techniques are employed to portray dramatic, arresting images of crumpled cars and bodies, and children and mothers crying. The source of social marketing advertisements is usually a local government or nonprofit organization.\r\n\r\nSocial marketing is usually used to try to convince citizens to drive more safely, eat better, report child and domestic abuse, and avoid various forms of criminality and drug use. As with ordinary advertising, social marketing can seem overdone or maudlin, and some social marketing ads have been mocked or considered silly. For example, former First Lady Nancy Reagan participated in a social marketing campaign that urged young people to \u201cJust Say No\u201d to drugs, an approach that\u00a0was ridiculed as simplistic by many. Noted radical activist Abbie Hoffman said that telling drug users to \u201cjust say no\u201d to drugs was like telling manic-depressives to \u201cjust cheer up.\u201d Despite that, drug use in America declined over the time period that the campaign was in progress, though there is no evidence that any part of this decline was due to the campaign.\r\n<div class=\"textbox tryit\">\r\n<h3>Practice Question<\/h3>\r\nhttps:\/\/assess.lumenlearning.com\/practice\/6da5bcb1-5a74-4638-bf3a-4a7430c808af\r\n<\/div>","rendered":"<div class=\"textbox learning-objectives\">\n<h3>Learning Outcomes<\/h3>\n<ul>\n<li>Give examples of corporate social responsibility<\/li>\n<\/ul>\n<\/div>\n<p><span style=\"color: #333333;\">Not all companies approach CSR in the same way. Their approach depends upon their resources, available assets, and corporate culture. In addition,\u00a0some companies perceive more benefit from one type of CSR than another. The personal beliefs and priorities of senior management\/ownership can also influence the company&#8217;s approach to social responsibility. Below are some different approaches to CSR.\u00a0<\/span><\/p>\n<h2>Corporate Philanthropy<\/h2>\n<p>Corporate philanthropy refers to a corporation\u2019s gifts to charitable organizations. There is an implication that the corporation\u2019s donations have no strings attached, which is probably quite rare. At a minimum, most corporations expect that their donations will be publicly attributed to the corporation, thus generating positive public relations. When corporations make large cash gifts to universities or museums, they are usually rewarded with a plaque or with a building or library named after the donor. Such attributions burnish the corporation\u2019s public image, and in such cases we are not dealing with true corporate philanthropy, strictly speaking, but something more in the nature of marketing or public relations.<\/p>\n<h2>Cause-Related Marketing<\/h2>\n<p>Cause-related marketing (CRM) refers to a corporation\u2019s associating the sales of its products to a program of donations or support for a charitable or civic organization. An example is provided by the famous Red campaign, in which corporations such as Nike and Gap pledged to contribute profits from the sale of certain red-colored products to a program for African development and alleviation of AIDS-related social problems. The basic idea of cause-related marketing is that the corporation markets its brand at the same time that it promotes awareness of the given social problem or civic organization that addresses the social problem. Another well-known example is the pink ribbon symbol that promotes breast-cancer awareness and is used prominently in the marketing of special lines of products by many corporations, such as Est\u00e9e Lauder, Avon, New Balance, and <em>Self Magazine<\/em>. In addition to marketing products with the pink-ribbon symbol, Est\u00e9e Lauder has made support for breast cancer awareness one of the defining features of its corporate philanthropy. Thus, Est\u00e9e Lauder also frequently refers to such charitable contributions, currently on the order of $150 million, in its corporate communications and public relations documents.<\/p>\n<h2>Sustainability<\/h2>\n<p>Sustainability has become such an important concept that it is frequently used interchangeably\u00a0with CSR. Indeed, for some companies, it seems that CSR is sustainability. This is perhaps not surprising, given the growing media attention on issues related to sustainability.<\/p>\n<p><strong>Sustainability<\/strong> is a concept derived from environmentalism; it originally referred to the ability of a society or company to continue to operate without compromising the planet\u2019s environmental condition in the future. In other words, a sustainable corporation is one that can sustain its current activities without adding to the world\u2019s environmental problems. Sustainability is therefore a very challenging goal, and many environmentalists maintain that no corporation today operates sustainably, since all use energy (leading to the gradual depletion of fossil fuels while emitting greenhouse gases) and all produce waste products like garbage and industrial chemicals. Whether or not true sustainability will be attainable anytime in the near future, the development and promotion of sustainability strategies has become virtually an obsession of most large corporations today, as their websites will attest in their inevitable reference to the corporation\u2019s sincere commitment to sustainability and responsible environmental practices. No corporation or corporate executive today will be heard to say that they do not really care about the environment. However, if we observe their actions rather than their words, we may have cause for doubt.<\/p>\n<h2>Social Entrepreneurship and Social Enterprise<\/h2>\n<p><strong>Social entrepreneurship<\/strong> and social enterprise refer to the use of business organizations and techniques to attain laudable social goals. As we&#8217;ll discuss further in the next reading, Blake Mycoskie decided to create TOMS Shoes largely as a reaction to his travels in Argentina, which had exposed him to terrible poverty that left many school-age children without shoes. An important part of the corporate mission of TOMS Shoes lies in its pledge to give away a free pair of shoes for every pair purchased by a customer. TOMS Shoes\u2019 model has been imitated by many others, including the popular online eyewear brand, Warby Parker.<\/p>\n<p>The difference between social entrepreneurship and CSR is that, with social entrepreneurship, the positive social impact is built into the mission of the company from its founding. Other examples of social entrepreneurship include The Body Shop, Ben &amp; Jerry\u2019s ice cream, and Newman\u2019s Own. The Body Shop was founded by noted activist Anita Roddick, who insisted that all products be derived from ingredients that\u00a0were natural, organic, and responsibly sourced. Her employment policies famously allowed every employee to take off one day a month from work to engage in social or community projects. Similarly, Ben &amp; Jerry\u2019s was founded to promote the use of organic, locally-produced food. The company\u2019s founders insisted on a policy that executives earn no more than seven times the salary of factory line-workers (although this policy was eventually relaxed when it became difficult to recruit a competent CEO at those wages). Ben &amp; Jerry\u2019s engaged in a number of high-profile political activities in which they encouraged their employees to participate, such as protesting the building of the Seabrook nuclear power plant in New Hampshire. Newman\u2019s Own was founded by film actor Paul Newman and his friend A. E. Hotchner with the goal of selling wholesome products and giving away 100 percent of the profits to charitable ventures. To date, Newman\u2019s Own has given away more than\u00a0two hundred million dollars.<\/p>\n<h2>Social Marketing<\/h2>\n<p><strong>Social marketing<\/strong> refers to the use of business marketing techniques in the pursuit of social goals. Often, governments and nonprofit organizations make use of social marketing to make their points more forcefully and effectively to a wide audience. Classic examples are the extremely powerful TV commercials warning of the dangers of unsafe driving or of failing to use seat belts. Cinematic techniques are employed to portray dramatic, arresting images of crumpled cars and bodies, and children and mothers crying. The source of social marketing advertisements is usually a local government or nonprofit organization.<\/p>\n<p>Social marketing is usually used to try to convince citizens to drive more safely, eat better, report child and domestic abuse, and avoid various forms of criminality and drug use. As with ordinary advertising, social marketing can seem overdone or maudlin, and some social marketing ads have been mocked or considered silly. For example, former First Lady Nancy Reagan participated in a social marketing campaign that urged young people to \u201cJust Say No\u201d to drugs, an approach that\u00a0was ridiculed as simplistic by many. Noted radical activist Abbie Hoffman said that telling drug users to \u201cjust say no\u201d to drugs was like telling manic-depressives to \u201cjust cheer up.\u201d Despite that, drug use in America declined over the time period that the campaign was in progress, though there is no evidence that any part of this decline was due to the campaign.<\/p>\n<div class=\"textbox tryit\">\n<h3>Practice Question<\/h3>\n<p>\t<iframe id=\"assessment_practice_6da5bcb1-5a74-4638-bf3a-4a7430c808af\" class=\"resizable\" src=\"https:\/\/assess.lumenlearning.com\/practice\/6da5bcb1-5a74-4638-bf3a-4a7430c808af?iframe_resize_id=assessment_practice_id_6da5bcb1-5a74-4638-bf3a-4a7430c808af\" frameborder=\"0\" style=\"border:none;width:100%;height:100%;min-height:300px;\"><br \/>\n\t<\/iframe>\n<\/div>\n\n\t\t\t <section class=\"citations-section\" role=\"contentinfo\">\n\t\t\t <h3>Candela Citations<\/h3>\n\t\t\t\t\t <div>\n\t\t\t\t\t\t <div id=\"citation-list-11620\">\n\t\t\t\t\t\t\t <div class=\"licensing\"><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Original<\/div><ul class=\"citation-list\"><li>Revision and adaptation. <strong>Authored by<\/strong>: Linda Williams and Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Practice Questions. <strong>Authored by<\/strong>: Robert Danielson. <strong>Provided by<\/strong>: Lumen Learning. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">CC licensed content, Shared previously<\/div><ul class=\"citation-list\"><li>Corporate Social Responsibility. <strong>Provided by<\/strong>: Wikipedia. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"https:\/\/en.wikipedia.org\/wiki\/Corporate_social_responsibility\">https:\/\/en.wikipedia.org\/wiki\/Corporate_social_responsibility<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-sa\/4.0\/\">CC BY-SA: Attribution-ShareAlike<\/a><\/em><\/li><li>Corporate Social Responsibility in the United States And Europe: How Important Is It? The Future of Corporate Social Responsibility. <strong>Provided by<\/strong>: The Clute Institute. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"http:\/\/www.cluteinstitute.com\/ojs\/index.php\/IBER\/article\/viewFile\/7970\/8024\">http:\/\/www.cluteinstitute.com\/ojs\/index.php\/IBER\/article\/viewFile\/7970\/8024<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by\/4.0\/\">CC BY: Attribution<\/a><\/em><\/li><li>Good Corporation, Bad Corporation: Corporate Social Responsibility in the Global Economy. <strong>Authored by<\/strong>: Guillermo C. Jimenez and Elizabeth Pulos. <strong>Provided by<\/strong>: SUNY. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"http:\/\/pressbooks.opensuny.org\/good-corporation-bad-corporation\/chapter\/1\">http:\/\/pressbooks.opensuny.org\/good-corporation-bad-corporation\/chapter\/1<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/licenses\/by-nc-sa\/4.0\/\">CC BY-NC-SA: Attribution-NonCommercial-ShareAlike<\/a><\/em><\/li><\/ul><div class=\"license-attribution-dropdown-subheading\">Public domain content<\/div><ul class=\"citation-list\"><li>Corporate Social Responsibility in America. <strong>Provided by<\/strong>: U.S. Embassy. <strong>Located at<\/strong>: <a target=\"_blank\" href=\"http:\/\/iipdigital.usembassy.gov\/st\/english\/audio\/2011\/04\/20110412150705enilorac1.085407e-02.html#ixzz4Q0ZtVSdJ\">http:\/\/iipdigital.usembassy.gov\/st\/english\/audio\/2011\/04\/20110412150705enilorac1.085407e-02.html#ixzz4Q0ZtVSdJ<\/a>. <strong>License<\/strong>: <em><a target=\"_blank\" rel=\"license\" href=\"https:\/\/creativecommons.org\/about\/pdm\">Public Domain: No Known Copyright<\/a><\/em><\/li><\/ul><\/div>\n\t\t\t\t\t\t <\/div>\n\t\t\t\t\t <\/div>\n\t\t\t <\/section>","protected":false},"author":17,"menu_order":15,"template":"","meta":{"_candela_citation":"[{\"type\":\"pd\",\"description\":\"Corporate Social Responsibility in America\",\"author\":\"\",\"organization\":\"U.S. Embassy\",\"url\":\"http:\/\/iipdigital.usembassy.gov\/st\/english\/audio\/2011\/04\/20110412150705enilorac1.085407e-02.html#ixzz4Q0ZtVSdJ\",\"project\":\"\",\"license\":\"pd\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Corporate Social Responsibility\",\"author\":\"\",\"organization\":\"Wikipedia\",\"url\":\"https:\/\/en.wikipedia.org\/wiki\/Corporate_social_responsibility\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"original\",\"description\":\"Revision and adaptation\",\"author\":\"Linda Williams and Lumen Learning\",\"organization\":\"\",\"url\":\"\",\"project\":\"\",\"license\":\"cc-by-sa\",\"license_terms\":\"\"},{\"type\":\"cc\",\"description\":\"Corporate Social Responsibility in the United States And Europe: How Important Is It? 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