Corporate Social Responsibility Role in innovative branding for rural India. Sasmita K Maurya
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1 Corporate Social Responsibility Role in innovative branding for rural India Sasmita K Maurya
2 Flow of presentation Research objective and methodology Introduction-CSR and Business Literature review- CSR and Business Review- rural branding/marketing initiatives in India Discussion and conclusion [Sasmita K Maurya] 2
3 Research issue & Methodology To identify the framework of innovative branding in rural India and the role of CSR in strategic decisions related to innovative branding. Literature review of CSR and review of branding initiatives done by companies in rural India. [Sasmita K Maurya] 3
4 Introduction CORPORATE SOCIAL RESPONSIBILITY & BUSINESS [Sasmita K Maurya] 4
5 CSR definition 1 the continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life of the workforce and their families as well as of the local community and society at large. -World Business Council for Sustainable Development (2007) [Sasmita K Maurya] 5
6 CSR definition 2 Corporate Social Responsibility is a commitment to improve community well being through discretionary business practices and contributions to corporate resources. - Kotler & Lee (2005) [Sasmita K Maurya] 6
7 CSR definition 3 the formal and informal ways in which business makes a contribution to improving the governance, social, ethical, labour, environmental conditions of the developing countries in which they operate, while remaining sensitive to prevailing religions, historical and cultural contexts. - Visser (2008) [Sasmita K Maurya] 7
8 Synergy consumption Goodwill & trust Business Society production Social Responsibility [Sasmita K Maurya] 8
9 Benefits of CSR Participation in corporate social initiatives can impact key performance factors. - Kotler & Lee(2005) Business for Social responsibility, a leading nonprofit global organization providing businesses with information, tools, training and advisory services related to integrating CSR in their business operations and strategies conclude that such companies have experienced a range of bottom-line benefits. [Sasmita K Maurya] 9
10 Research Question How can businesses plan sustainable, innovative marketing/branding strategies for rural markets and what is the role of CSR in formulating such strategies? [Sasmita K Maurya] 10
11 CSR & Business- Literature Review (contd.) Researcher, Year Kanter, 2003 Chapple and Moon, 2005 Goodpaster and Matthews, 2003 Key Findings Now companies are viewing community needs as opportunities to develop ideas, locate and cater to new markets, and solve long overdue business problems. Community involvement is the largest part of established form of CSR in India. This is now being followed by socially responsible production processes and employee relations. Corporations that monitor their employment practices and the effects of their production processes and products on the environment and human health show the same kind of rationality and respect that morally responsible individuals do. [Sasmita K Maurya] 11
12 CSR & Business- Literature Review (contd.) Researcher, Year Porter and Kramer, 2002 Sen, Bhattacharya and Korschun, 2006 Key Findings Social and economic goals of companies are not inherently conflicting but integrally connected. Corporations need to rethink both where they focus their philanthropy and how they go about their giving. Stakeholders from consumption, employment and investment domains react positively to a company s CSR initiatives. Maignan, Ferrel and Hult, 1999 Market oriented cultures along with humanistic cultures lead to proactive corporate citizenship, which in turn is associated with improved levels of employee commitment, customer loyalty and business performance. [Sasmita K Maurya] 12
13 CSR & Business- Literature Review (contd.) Researcher, Year Peterson and Jun, 2009 Key Findings A company which has incorporated CSR philosophy in its business model has better reputation and this leads to better financial performance, since both are closely related. Sirsly and Lamertz, 2008 Doh, Howton, Howton and Siegel, 2010 Kapoor and Sandhu, 2010 CSR initiatives of a company can lead to a sustainable firstmover advantage provided it is central to the company s mission, provides company specific benefits and is made visible to external audiences. Institutional intermediaries (NGOs, rating agencies, certifying agencies, think tanks, public institutions etc) appear to influence market assessments of a company s social responsibility. There is significant positive impact of CSR on corporate profitability and insignificant positive impact on corporate growth. [Sasmita K Maurya] 13
14 Review INNOVATIONS IN BRANDING IN RURAL INDIA [Sasmita K Maurya] 14
15 [Sasmita K Maurya] 15
16 [Sasmita K Maurya] 16
17 DISCUSSION A CONCEPTUAL MODEL FOR INTEGRATING CSR INITIATIVES WITH INNOVATIVE RURAL BRANDING STRATEGIES [Sasmita K Maurya] 17
18 And/or And/or In sync with Differentiator Internal Environment External Environment Employees and Institutional Intermediaries (NGOs, rating agencies, etc) Company mission Company CSR Policy Rural CSR Initiatives (+) Corporate reputation Innovative rural branding (+) Sustainable rural demand Synergistic relationship Customized products Rural Marketing Initiatives Rural needs And/or Innovative pricing Unconventional distribution Comprehensive communication
19 Conclusion For past many years the field of marketing has been thought of as made up of fast buck artists, wheeler dealers and shoddy goods distributors (Smith & Higgins, 2009).- Integration of CSR with marketing/branding initiatives may immunize this field from adverse reputation. [Sasmita K Maurya] 19
20 THANK YOU [Sasmita K Maurya] 20
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