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VINIT JAIN
08D1662
BBA B
ADVERTISING MANAGEMENT
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INTRODUCTION TO CORPORATE SOCIAL RESPONSIBILITY
Corporate social responsibility("CSR" for short, and also called
corporate conscience,
citizenship, social performance, or sustainable responsible
business) is a form ofcorporateself-regulation integrated into
abusiness model.CSR policy functions as a built-in,
self-regulating
mechanism whereby business monitors and ensures its active
compliance with the spirit of the
law, ethical standards, and internationalnorms. The goal is
embrace responsibility for, an
encourage a positive impact through its activities on the
environment, consumers, employees,
communities,stakeholders and all other members of thepublic
sphere. Furthermore, CSR-
focused businesses wouldproactivelypromote thepublic interestby
encouraging community
growth and development, and voluntarily eliminating practices
that harm the public sphere,
regardless of legality. CSR is the deliberate inclusion ofpublic
interest into corporatedecision-
making,and the honoring of atriple bottom line:people, planet,
profit.
The term "corporate social responsibility" came in to common use
in the early 1970s, after many
multinational corporations formed. The termstakeholder, meaning
those on whom an
organization's activities have an impact, was used to describe
corporate owners
beyondshareholders as a result of an influential book byR.
Edward Freeman,Strategic
management: a stakeholder approach in 1984. Proponents argue
that corporations make more
long term profits by operating with a perspective, while critics
argue that CSR distracts from the
economic role of businesses. Others argue CSR is
merelywindow-dressing,or an attempt to pre-
empt the role of governments as a watchdog over
powerfulmultinational corporations.
CSR is titled to aid an organization's mission as well as a
guide to what the company stands for
and will uphold to its consumers. Developmentbusiness ethics is
one of the forms ofapplied
ethics that examines ethical principles and moral or ethical
problems that can arise in a business
environment. ISO 26000 is the recognized international standard
for CSR (currently a Draft
International Standard). Public sector organizations (the United
Nations for example) adhere to
thetriple bottom line (TBL). It is widely accepted that CSR
adheres to similar principles but with
no formal act of legislation. TheUN has developed thePrinciples
for Responsible Investment as
guidelines for investing entities.
http://en.wikipedia.org/wiki/Corporatehttp://en.wikipedia.org/wiki/Self-regulationhttp://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Norm_(sociology)http://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Public_spherehttp://en.wikipedia.org/wiki/Proactivehttp://en.wikipedia.org/wiki/Public_interesthttp://en.wikipedia.org/wiki/Public_interesthttp://en.wikipedia.org/wiki/Decision-makinghttp://en.wikipedia.org/wiki/Decision-makinghttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Shareholdershttp://en.wikipedia.org/wiki/R._Edward_Freemanhttp://en.wikipedia.org/wiki/Display_windowhttp://en.wikipedia.org/wiki/Multinational_corporationshttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Applied_ethicshttp://en.wikipedia.org/wiki/Applied_ethicshttp://en.wikipedia.org/wiki/ISO_26000http://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/UNhttp://en.wikipedia.org/wiki/Principles_for_Responsible_Investmenthttp://en.wikipedia.org/wiki/Principles_for_Responsible_Investmenthttp://en.wikipedia.org/wiki/UNhttp://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/ISO_26000http://en.wikipedia.org/wiki/Applied_ethicshttp://en.wikipedia.org/wiki/Applied_ethicshttp://en.wikipedia.org/wiki/Business_ethicshttp://en.wikipedia.org/wiki/Multinational_corporationshttp://en.wikipedia.org/wiki/Display_windowhttp://en.wikipedia.org/wiki/R._Edward_Freemanhttp://en.wikipedia.org/wiki/Shareholdershttp://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Triple_bottom_linehttp://en.wikipedia.org/wiki/Decision-makinghttp://en.wikipedia.org/wiki/Decision-makinghttp://en.wikipedia.org/wiki/Public_interesthttp://en.wikipedia.org/wiki/Public_interesthttp://en.wikipedia.org/wiki/Proactivehttp://en.wikipedia.org/wiki/Public_spherehttp://en.wikipedia.org/wiki/Stakeholder_(corporate)http://en.wikipedia.org/wiki/Norm_(sociology)http://en.wikipedia.org/wiki/Business_modelhttp://en.wikipedia.org/wiki/Self-regulationhttp://en.wikipedia.org/wiki/Corporatehttp://en.wikipedia.org/wiki/Corporate
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CORPORATE SOCIAL RESPONSIBILITY AT BEN & JERRYS
Corporate social responsibility (CSR) or corporate citizenship
entails companies behaving in a
socially responsible manner, and dealing with other business
parties who do the same. With
growing public awareness and demand for socially responsible
businesses, it is little wonder that
companies of today take corporate social responsibility into
account when planning futuresocially responsible business
operations. This case study examines one such example of
corporate social responsibility exemplified by Ben &
Jerrys.
Ben & Jerrys is a Vermont-based manufacturer of ice cream,
frozen yoghurt and sorbet, wasfounded in 1978 and was subsequently
acquired by Unilever. "Business has a responsibility to
the community and the environment" is Ben & Jerry's mantra
and it certainly walks the talk
when it comes to corporate social responsibility.
Engaging the Communi ty through Community-based Projects
One approach to engaging in corporate social responsibility is
through community-based
development projects. Community-based and community-driven
development projects havebecome an important form of development
assistance among global socially responsible
companies. An economic relationship implies a strategy of
engaging the wider community into
the core business activity of the company so that communities
become embedded in corporate
supply chain strategy to create a sustainable business.
An example of this approach can be seen in the Vermont Dairy
Farm Sustainability Project,
which was launched by Ben & Jerrys in 1999. This CSR project
sought to develop practicalmethods that could be used on typical
dairy operations to safeguard water quality from nitrogen
and phosphorus run-off, while not sacrificing the economic
viability of the farm and making thefarm a sustainable
business.
According to the Ben & Jerrys social and environmental
assessment 2004 report, the result of
this three-year study demonstrated that farmers could reduce
nutrient levels without decreasingcrop size and that improved water
quality and cost savings resulting from reductions in the
amount of nutrient use on the farm would be beneficial for the
environment as well as the
farmers bottom-line. These would thus help the farm become a
more sustainable business.
Corporate Phil anthropy
Ben & Jerrys also donates a portion of its pre-tax profits
to corporate philanthropy as part of itsefforts to be more socially
responsible. Corporate philanthropy is employee-led through the
Ben
& Jerry's Foundation and Community Action Teams (CATS) at
each site.
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Methods of Corporate Social Responsibi li ty at Ben &
Jerrys
Ben and Jerry were quick to align their actions and their social
causes with their brand. They did
not simply search for causes haphazardly, but instead focused on
causes that were in some way
related to ice cream. Their philanthropic activities range from
giving away free ice cream to
using select scoop shops to bring job training opportunities to
the underserved anddisenfranchised. One of the impressive
characteristics shared by many of Ben & Jerryssocial
mission activities is their longevity. Many of their events are
long-standing traditions. For
example, Free Cone Day dates back to May 5, 1979.
Ben and Jerry decided to give away free ice cream in celebration
of being in business for anentire year. This is still an annual
tradition today, with 871,271 free cones given out worldwide
in 2003.
Ben & Jerrys social mission activities definitely extend
well beyond ice cream giveaways. Infact, they focus on three main
areas: economic and social justice, community, and the
environment. Ben & Jerrystakes a fairly systematic approach
of identifying potential projects.They take a look at their core
competencies and resources, and try to find ways to do them in
afashion that has a more positive impact on society, while
maintaining product quality. One major
portion of Ben & Jerrysoperations is the purchasing of
ingredients.
The company has explored several different methods in order to
purchase ingredients in a way
that has a positive social impact. This is referred to as the
Program for Socially-Aligned
Sourcing. Through this program, Ben & Jerryslooks for
socially responsible suppliers that theycan partner with while not
passing on any extra expense to the consumer. Ben & Jerrys
first
focused on the material the company uses the most: dairy!
They made a commitment to St. Albans farmers in 1997 to pay them
a premium for dairyproducts while the farmers pledged not to use
rBGH on their cows. rBGH is a growth hormone
that causes cows to produce more milk. Ben & Jerrysis
against the use of rBGH because they
believe there is not a need for excess milk, they support the
humane treatment of animals, andthey have concerns about rBGH and
related chemicals being passed on to the consumer via the
milk.
In addition to milk, Ben & Jerrys is finding socially
responsible ways to purchase chocolate,
vanilla, coffee, bananas, and strawberries. Most wholesalers do
not pay farmers a fair price fortheir products. Ben & Jerrysis
doing their part to ensure these farmers receive a livable wage
for their products. Basically, there is one individual at Ben
& Jerrys that scours the world
looking for democratically run co-ops or farming associations
that are trying to look at thesustainability of their future. Ben
& Jerrysnot only pays them a premium for their products,
butthey also help them improve their business. Ben &
Jerrysteaches the farmers about long-term
contracts and helps them with innovative financing. This fiscal
improvement then allows them
to spread out the money they earn between harvests. In the
coffee market specifically, Ben &
Jerryswill soon have Fair Trade Certified suppliers. They
actually already pay farmers a fairwage, however it will soon be
official through a global fair trade organization. This change
will
help such organizations inform consumers about the sources of
their ingredients.
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In addition to paying farmers livable wages, Ben & Jerrys
also carries out socially-aligned
sourcing by purchasing ingredients from suppliers that have
their own social mission. One such
supplier is Greyston Bakery, which is owned by the Greyston
Foundation of Yonkers, NewYork. This organization manages
businesses and programs whose goals are personal
empowerment and social improvement. Ben & Jerryspurchases a
portion of the brownies used
in Chocolate Fudge Brownie and Half Baked from Greyston Bakery.
Although Ben & Jerryspays a premium for these brownies, the
extra expense is not passed onto the consumers.However, that
additional money earned by Greyston Bakery has been used to provide
job skills
to individuals who face barriers to employment. Ben &
Jerrysalso provided technical advice to
Greyston during the construction of a new plant that will more
efficiently produce brownies.
Another unique social mission extension of the Ben &
Jerrysbrand is the Partner Shop Program.
Partner Shops are owned and operated by nonprofit
organizations.
In addition to paying farmers livable wages, Ben & Jerrys
also carries out socially-aligned
sourcing by purchasing ingredients from suppliers that have
their own social mission. One such
supplier is Greyston Bakery, which is owned by the Greyston
Foundation of Yonkers, NewYork. This organization manages
businesses and programs whose goals are personal
empowerment and social improvement. Ben & Jerryspurchases a
portion of the brownies usedin Chocolate Fudge Brownie and Half
Baked from Greyston Bakery. Although Ben & Jerrys
pays a premium for these brownies, the extra expense is not
passed onto the consumers.
However, that additional money earned by Greyston Bakery has
been used to provide job skills
to individuals who face barriers to employment. Ben &
Jerrysalso provided technical advice toGreyston during the
construction of a new plant that will more efficiently produce
brownies.
Another unique social mission extension of the Ben &
Jerrysbrand is the Partner Shop Program.Partner Shops are owned and
operated by nonprofit organizations.
Ben & Jerryswaive off the franchise fees for these scoop
shops and also provides training andsupport for the nonprofit. In
turn, the Partner Shops provide job training skills to individuals
in
the community, often focusing on disenfranchised youth. A lot
has been done in 2003 to help
this program grow. Many Partner Shops have been paired with
traditional scoop shops in orderto ensure their success. The goal
is to eventually have a Partner Shop in every city that has a
traditional scoop shop. Through these Partner Shops they hope to
bring wealth to all members of
these communities.
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SOCIAL RESPONSIBILITY IN ADVERTISING
Corporate Social Responsibility (CSR) emphasizes that firms
should think about ALL
"stakeholders" rather than just the "shareholders" in ALL of its
operations (Value Chain)(Stakeholders as Shareholders, 1996). It
seems only logical that business leaders should
engage in responsible decision making and behavior in their
personal and professional roles. Yet,
critics of CSR contend that the job of the business is to focus
only on making money; the
notion that the corporation should apply its assets for social
purposes, rather than for the profit of
its owners, the shareholders, is irresponsible (Atkins, 2006).
However, these critics fail to
realize that CSR is an investment that will actually help a
companys bottom line because
consumers increasingly value supporting businesses that are
socially responsible (Good
Business Deeds, 2004). Three companies that have recogn ized
this sentiment include Ben &
Jerrys, McDonalds and Avon as shown by theirweb sitesandmedia
communications.Ben &
Jerrysweb site goes beyond most companys efforts at
corporatesocial responsibility in that is
supports a very liberal political agenda and more closely links
the The company provides
information about food, nutrition and fitness as well as its
sponsorships of athletic events such as
the All American High School Boys and Girls Basketball Games,
AVP Volleyball, Nascar and
the FIFA World Cup. McDonald even features an entire section on
social responsibility,
detailing its commitments to all stakeholders including
customers, the community, and
employees as well as making efforts to protect the environment
and to engage in responsible
purchasing with its suppliers of the company to its views,
referring to itself as "the socially-
minded ice cream maker". One recentpress release describe how
Ben & Jerry shop owners have
painted, planted, cleaned, and fixed up a children's school in
Puerto Morelos, Mexico. Yet
anotherpress release promotes the increase use of fair trade
certified products. Not being shy
about political alliances, the company mentions that it has
joined forces with the Consumer
Federation of America, the National Farmers Union and others.
The company makes extensive
use ofmedia communications to publicize its efforts forsocial
responsibility. Yet, McDonald
efforts appear to be a response to prevent damage as opposed to
a proactive effort for change and
arentas interwoven with the company identify associal
responsibility appears to be for Ben &
Jerry and for Avon. These campaigns do appear to help elevate
the image of McDonald that has
been greatly tarnished by the book and movie FastFood Nation
which details the poor quality of
the company food and its low wages and poor working conditions.
com/)Avon brands itself as"the company for women". Avon describes
how it has partnered with the United Nations
Development Fund for Women to promote women empowerment and end
violence against
women and how it supports International Women Day which
remembers the efforts to end poor
conditions for women working in sweat shops.
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