CSR and Your Marketing Strategy: Starbucks, Krogers, McDonald’s Show Doing Good Is Good Business
We’ve probably all heard the expression that “doing good is good for business” at some point in our careers.
In the last decade, corporate social responsibility (CSR) has become far more important as consumers increasingly expect the brands and companies they buy from and invest in to contribute to the environment and to local communities.
For example, according to a study from Cone Communications, 87% of consumers will buy a product because a company advocated for an issue they care about. Meanwhile, a meta-analysis of more than 80 research papers revealed that 60% of the public is willing to pay a premium for socially responsible products.
On that note, 2018 has been the year to wage war against single-use plastics. The global outcry against the inundation of plastic waste led Kroger, for instance, this week to respond to demands from customers for less packaging waste by promising to phase out its use of plastic bags by 2025.
Similarly, last month Starbucks unveiled plans to ditch plastic straws from its 28,000 stores worldwide by 2020.
And while McDonald’s earlier this year also committed to eliminating plastic straws from some European markets and its UK restaurants, that wasn’t enough for shareholders, who demanded the removal of plastic straws in every McDonald’s restaurant across the globe.
While these types of company campaigns undoubtedly improve the public perception of an organization, they also offer direct business benefits.
Researchers have found that companies focused on social responsibility significantly outperform competitors that do not. One study even reported that the stocks of companies with the best social performance outshine the worst social performers by as much as 6.24% annually.
Consider that the day after it announced its plan to eliminate plastic straws, Starbucks shares received a much needed boost as company stock rose 1.9% in morning trade.
Indeed, consumer expectations have led CSR to become an integral part of a company’s identity. However, successful CSR extends beyond the campaigns themselves, which should be integrated into a marketing strategy.
Here’s a key question, though: Will anybody care about a company’s efforts to make the world a better place if they don’t know about it?
Tying the knot between CSR and marketing
A dedicated marketing plan goes hand-in-hand with a strong CSR program or campaign.
Although customers want to know that brands and companies are doing good in the world, they want authenticity.
When marketing CSR efforts, the communications must seem disconnected from a wider business campaign. In other words, corporate marketing and CSR marketing should be entirely separate.
CSR should be seen as a way to raise customer and employee engagement, which ultimately will benefit multiple aspects of the business.
Social media platforms provide a direct route for organizations to share their brand values beyond simply making great products or offering the best services. Rather, they provide a route for engaging with consumers and showing what your company stands for.
However, with this power comes great responsibility – it’s the marketing team’s job not to cross the line between social leadership and simply showing off. The same tools that allow marketers to get their companies’ CSR efforts in the public eye will be used by consumers to hold those companies to account.
As such, it is the marketing team’s responsibility to conduct consumer research and analysis that will help find the best way to present CSR efforts to the target audience.
Also, remember that CSR is a key aspect of building a positive company image: Companies that support social issues are seen in a more positive light by 92% of consumers.
A marketing team’s job is to communicate a product, brand or company’s value to the public and CSR is now one of the main conduits to success.
Ultimately, a dynamic marketing strategy will build the bridge between CSR and brand equity – doing good for everybody involved.
