Straight up, CSR does not generate immediate profit. However, CSR does indeed create brand loyalty, public relations, and also positive brand positioning. There are 5 main types of CSR techniques that are used in different situations and for different companies, these are:
- Cause related marketing
- Cause promotion
- Corporate social marketing
- Corporate philanthropy
- Workforce volunteering
Cause Related Marketing
Nowadays, many profit making companies have been striving to create something other than profit for the business while bringing happiness to those who need help. Cause related marketing is when a company donates a certain percentage of their profit to a good cause through the use of a campaign. With the use of a campaign, many customers will be delighted to purchase a product, especially if it’s going to a good cause. Tom’s Shoes do this with their incentive where with each pair of shoes bought, another pair of shoes is given to someone who needs them.
This CSR method is when a corporation provides funds in order to increase awareness and concern about a social cause or to support fundraising. Pampers teamed up with UNICEF in order to provide funds for tetanus vaccinations for newborns.
Corporate Social Marketing
This type of CSR method is when the company takes into account the consequences of its actions on the environment and social welfare. Corporate social marketing generally applies to any company’s efforts to go beyond what is expected of them and work to support the community and environment around them. John Lewis did this by having packaging which was more eco friendly.
Firstly, the word “philanthropy” is Greek for “love for mankind”. Corporate philanthropy is carried out with no aim on generating revenue, however, it does usually involve indirect gains such as improving the brand name, engaging the employees and also recognition. This type of corporate social responsibility is more than just a donation, it must be carried out by a company that is willing to improve the wellbeing of the community/society around us.
Mark Zuckerberg did this through the creation of Aquila, a solar powered aeroplane that will provide internet to those who need it.
I’m excited to announce we’ve completed construction of our first full scale aircraft, Aquila, as part of our Internet.org effort. Aquila is a solar powered unmanned plane that beams down internet connectivity from the sky. It has the wingspan of a Boeing 737, but weighs less than a car and can stay in the air for months at a time.
We’ve also made a breakthrough in laser communications technology. We’ve successfully tested a new laser that can transmit data at 10 gigabits per second. That’s ten times faster than any previous system, and it can accurately connect with a point the size of a dime from more than 10 miles away.
This effort is important because 10% of the world’s population lives in areas without existing internet infrastructure. To affordably connect everyone, we need to build completely new technologies.
Using aircraft to connect communities using lasers might seem like science fiction. But science fiction is often just science before its time. Over the coming months, we will test these systems in the real world and continue refining them so we can turn their promise into reality. Here’s a video showing the building of Aquila.
This method of CSR is when the employees of the said company volunteer to aid a certain organisation. Workforce volunteering is an incredible way to inspire employees to find new meaning in their job, increase their skills, and also participating in a good deed! Xerox do an excellent job of this with their Employee Volunteer Activities where they involve their employees in a variety of voluntary work within the community.
When companies focus on CSR their perception is boosted and indirectly, profits will increase. However, many companies do not simply participate in CSR for profits, but to help the general public and enhance their brand image. When a company is known to participate in charity events, positive word of mouth is exchanged, and as well all know, word of mouth is the best and cheapest type of advertising.