Building and managing CSR brands
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1 Building and managing CSR brands Theory and applications Prof. Dr. Carsten Baumgarth Prof. Dr. Lars Binckebanck Prof. Dr. Carsten Baumgarth 1
2 Agenda From greenwashed and hidden to real CSR brands CSR brand model Management applications Research applications Didactical applications Conclusions Prof. Dr. Carsten Baumgarth 2
3 Agenda From greenwashed and hidden to real CSR brands CSR brand model Management applications Research applications Didactical applications Conclusions Prof. Dr. Carsten Baumgarth 3
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6 Real CSR brands Stakeholder s view (CSR communication & image) low high Company s view (CSR brand identity) weak strong No CSR brand Pampers Hidden CSR brand Miele Greenwashed CSR brand Coca-Cola Life Real CSR brand Freitag Prof. Dr. Carsten Baumgarth (cb@cbaumgarth.net) 6
7 Agenda From greenwashed and hidden to real CSR brands CSR brand model Management applications Research applications Didactical applications Conclusions Prof. Dr. Carsten Baumgarth 7
8 CSR brand model Objective: Model-driven support of a real CSR brand CSR brand identity Conceptual basis: Model by Hatch/Schulz (2001/2008) Model interprets brands as a concept internally developed from the brand identity Strong brand identity results when fundamental elements show high conformity Prof. Dr. Carsten Baumgarth (cb@cbaumgarth.net) 8
9 CSR brand model CSR brand identity Element 1: Brand positioning as explicit decision-making of (top) management about the basic orientation of the brand To what extent does the brand positioning include CSR? Result of altruistic motives of the top management? Written codification, e.g. Mission/ Vision? Importance of the brand as seen from the (top) management? Active enactment of brand values by managers? Prof. Dr. Carsten Baumgarth 9
10 CSR brand model Element 2: Business Culture as set of values shared by all employees CSR brand identity Explicit and implicit norms (e.g. guidelines to save energy) and symbols (e.g. usage of electric cars, work place design) Do all employees perceive the CSR idea as relevant, do they live and actively support it? Prof. Dr. Carsten Baumgarth 10
11 CSR brand model Element 3: real-life company behavior as seen by its stakeholders CSR brand identity Behaviour Concrete measures by the company which have both internal and external effects Holistic CSR approach covering the entire value chain, from sourcing and production via distribution through to recycling? CSR-relevant measures in all functional areas and regional locations? Prof. Dr. Carsten Baumgarth 11
12 CSR brand model Communication CSR brand identity Behaviour Element 4: external communication All external personal or media-based contacts with different stakeholder groups CSR-related credibility based on factors such as transparency, proof through verifiable facts (e.g. CSR report, certificates, participation in CSR contests), openness and authentic interaction with the various stakeholders? Actual branding (name, logo, brand colors etc.) conveys the CSR identity? Prof. Dr. Carsten Baumgarth 12
13 CSR brand model Brand Equity Communication CSR brand identity Behaviour Element 5: brand equity of various stakeholders Brand awareness Sustainable brand image Brand evaluation (e.g., trust) Brand preferences (e.g., buy, loyalty, support) Prof. Dr. Carsten Baumgarth 13
14 CSR brand model Brand Equity Implementation Gap Communication Anchoring Gap CSR brand identity Behaviour Credibility Gap Experience Gap Element 6: Gaps between the elements in the sense of inconsistencies and contradictions Anchoring Gap: The orientation of the brand as specified by top management does not correspond with the convictions and values of employees Experience Gap: Deviations in the actual behavior of the company (e.g. products) and the values shared within the work force Implementation Gap: The defined CSR values are not converted into concrete behavior Credibility Gap: CSR brand identity and external communication do not conform Prof. Dr. Carsten Baumgarth 14
15 Agenda From greenwashed and hidden to real CSR brands CSR brand model Management applications Research applications Didactical applications Conclusions Prof. Dr. Carsten Baumgarth 15
16 Management applications: CSR Awards Prof. Dr. Carsten Baumgarth 16
17 Management applications: CSR Awards Average scores after the re-scaling by the method team (in %) Prof. Dr. Carsten Baumgarth (cb@cbaumgarth.net) 17
18 Management applications: brand audits External audit team holistic Source: Baumgarth/Kaluza/Lohrisch (2013, 2014). Evaluation & Learning valid Brand audit Multi-Methodapporach systematic Prof. Dr. Carsten Baumgarth 18
19 Management applications: brand audits CSR brand 100 % (positive) 75 % 50 % 25 % 0 % (negative) Sources & reasons Dimension 2: Corporate Culture Internal CSR trainings is implemented by systematic and continuous staff training Systematic and continuous CSR oriented workshop and training program for all employees and partners (e.g., dealers) CSR oriented workshops for all employees CSR oriented workshops for selected employees Low number or irregular workshops and trainings for selected employees No CSRoriented trainings Interview with the HR manager, analysis of the workshop program and external trainings, employee survey Prof. Dr. Carsten Baumgarth (cb@cbaumgarth.net) 19
20 Agenda From greenwashed and hidden to real CSR brands CSR brand model Management applications Research applications Didactical applications Conclusions Prof. Dr. Carsten Baumgarth 20
21 Research applications: brand identity model (adapted from: Meffert/Burmann 1996) Brand Identity (Internal Perspective) Brand Promise (Positioning) Real CSR Brand Brand Expectations Brand Image (External Perspective) Business Culture Brand Behavior Brand Experiences Brand Equity Long-term-oriented, credible and consistent behavior results in strong brand perceptions, leading to superior brand equity Prof. Dr. Carsten Baumgarth 21
22 Research applications: case study research German residential estate industry (Baumgarth/Binckebanck 2011) - 4 brands Luxury consumer goods industry (Baumgarth et al. 2012) - 3 brands b2b vs. b2c (Baumgarth/Binckebanck 2014) - 4 brands Ø Selected findings: - general support of the CSR brand model across industries and borders - CSR brands should be developed inside-out - acceptance of CSR-related value propositions vary depending on the value chain (upstream vs. downstream) and stakeholder type - support for the hypothesis that consistency of elements (=minimum of gaps) is a valid indicator of CSR brand equity and competitive advantage - company history and context as moderating variables (CRS brands born or made?) - relevance of enthusiastic and charismatic leader and leadership - high quality products or services are the basis of strong CSR brands Prof. Dr. Carsten Baumgarth (cb@cbaumgarth.net) 22
23 Agenda From greenwashed and hidden to real CSR brands CSR brand model Management applications Research applications Didactical applications Conclusions Prof. Dr. Carsten Baumgarth 23
24 Didactical applications: Jury game 1. Presentation of the CSR brand model (around 30 minutes) 2. Reading of an article and the checklist (around 30 minutes) 3. Presentation of 3 5 cases (around 45 minutes) 4. Students act as a jury and fill out the checklist after each case presentation 5. Students create a ranking of the presented CSR brands (around 5 minutes) 6. Students use sticky points to develop a ranking on a flipchart (around 5 minutes) 7. Determination of the winner brand and reflection by the lecturer (around 10 minutes) Ø complete duration: hours Prof. Dr. Carsten Baumgarth (cb@cbaumgarth.net) 24
25 Agenda From greenwashed and hidden to real CSR brands CSR brand model Management applications Research applications Didactical applications Conclusions Prof. Dr. Carsten Baumgarth 25
26 Conclusions Transformative business model International perspective Value-chain and network perspective Brand portfolio Differentiation by the integration of established CSR tools Empirical validation of the model Prof. Dr. Carsten Baumgarth 26
27 27
28 Baumgarth, C.; Behrendt, C.; Binckebanck, L.; Bostelmann, C. (2012). Nachhaltig luxuriös. Markenartikel, 74(7), Baumgarth, C.; Binckebanck, L. (2011a). Sales force impact on b2b brand equity: Conceptual framework and empirical test. Journal of Product and Brand Management, 20(6), Baumgarth, C.; Binckebanck, L. (2011b). CSR-Markenmanagement in der mittelständischen Bau- und Immobilienwirtschaft, Ed.: Meyer, J.-A.: Nachhaltigkeit in kleinen und mittleren Unternehmen, Lohmar, Baumgarth, C.; Binckebanck, L. (2014). Best Practices der CSR-Markenführung und -kommunikation, Eds.: Meffert, H.; Kenning, P.; Kirchgeorg, M.: Sustainable Marketing Management, Wiesbaden, Baumgarth, C.; Binckebanck, L. (2015). CSR basierte Markenführung für B2b-Märkte: Ein Modellvorschlag, Eds.: Heidel, B.; Teichert, T.: Konsumentenverhalten - Basis für Kommunikation und Markenführung, Hamburg, Baumgarth, C.; Kaluza, M.; Lohrisch, N. (2017). Brand Audit for Cultural Institutions (BAC) A validated and holistic brand controlling tool. International Journal of Arts Management (accepted). Burmann, C.; Jost-Benz, M.; Riley, N. (2009). Towards an identity-based brand equity model. Journal of Business Research, 62(3), Fan, Y. (2005). Ethical branding and corporate reputation. Corporate Communication, 10(4), Hatch, M. J.; Schulz, M. (2008). Taking brand initiative. San Francisco. Meffert, H.; Burmann, C. (1996). Identitätsorientierte Markenführung, Working Paper No. 100, Münster. Yoon, Y.; Gürhan-Canli, Z.; Schwarz, N. (2006). The effect of corporate social responsibility (CSR) activities on companies with bad reputations. Journal of Consumer Psychology, 16(4),
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