Q. WHEN SHOULD A CORPORATION CONSIDER A MAJOR SOCIALLY RESPONSIBLE BUSINESS PRACTICE INITIATIVE?

A. The following are the reasons when corporations must consider a major socially responsible business practice initiative: 1. When a company has been offered a financial incentive to alter a business practice for the benefit of the environment, most typically from an external public or regulatory agency (e.g., Cisco’s incentive from the local energy supplier to meet or exceed guidelines for energy conservation). 2. When the adoption of a new practice would reduce operating costs, as well as contribute to a social issue (e.g., Chiquita saving millions each year after reducing its use of select chemicals). 3. When a current business practice can be identified (in part) as contributing to an important social problem, and modifications and improvements would help address the issue (e.g., McDonald’s deciding to phase out supersize options). 4. When there is an opportunity to improve employee health, safety, or well-being by altering a business practice or investing in infrastructures and educational communications (e.g., Coca Cola’s HIV/AIDS workplace program). 5. When engagement in this practice can add an important point of differentiation to target markets in a crowded, undifferentiated marketplace (e.g., Nike offering a line of products made with environmentally friendly materials). 6. When there are opportunities for alliances that will strengthen the brand’s positioning (e.g., Motorola’s participation in EPA’s waste reduction program). 7. When the adoption of the practice could actually improve product quality or performance, providing increased value and points of difference (e.g., compact fluorescent light bulbs that use less energy and last longer). 8. When investments or changes in practices will strengthen relationships with suppliers or distributors (e.g., Starbucks providing training and economic opportunities to ensure a long-term sustainable supply of excellent coffee).

Q. Give examples of CSR initiatives that are considered as ‘good’ to the society?

A.
1. Enhance public awareness and concern for the cause through support of promotional communication efforts (e.g., Ben & Jerry’s campaign to increase concern about global warning).
2. Support fundraising by encouraging customers and others in the community to contribute to causes (e.g., British Airways’ campaign that collects pocket change from passengers for children’s charities).
3. Increase community participation in cause-related activities by providing promotional support and use of distribution channels (e.g., PETsMART periodically providing space in their stores for adopting animals).
4. Support efforts to influence individual behavior change and industry business practices that improve public health (e.g., Coca-Cola Africa Foundation’s HIV/AIDS workplace initiative) and safety (e.g., FedEx’s SAFE KIDS Walk This Way program) and protect the environment (e.g., Best Buy’s effort to support recycling of used computers).
5. Provide increased funds and other resources that help charities and cause efforts make ends meet and/or expand efforts (e.g., General Mills providing grants for projects that improve youth nutrition and physical activity levels).

6. Increase the number of volunteers donating their expertise, ideas, and physical labor to a cause by promoting volunteerism in the community and supporting employee volunteer efforts (e.g., Shell employees helping with coastal cleanups).

Q. What are the things that have to be taken into consideration before choosing a social problem to solve?

A. The following things have to be kept in mind before undertaking to solve a social problem:

1. Choose Only a Few Social Issues to Support. Companies should determine and pick a few major social issues as a focal point. For example, AVON has always supported women health issues and Colgate has focused on dental health and hygiene. The benefit in choosing a few issues is that it increases chances that the company can actually have an impact on a particular social initiative, as resources are focused and multiple initiatives aimed at one cause. Targeting resources in a few areas increases chances that the corporation will be connected to the cause and will therefore leverage potential brand positioning and other desired marketing benefits. 2. Choose Issues That Are of Concern in the Communities Where You Do Business: Improving communities where facilities are located, where future workforces will be recruited, and where customers live can support both social and economic goals. Levi Strauss was one of the first to step forward in the San Francisco Bay area to support HIV/AIDS prevention. American Express, with over 4,000 employees displaced as a result of theSeptember 11 attacks, was a natural to help revitalize downtown Manhattan. This may also help solve real problems facing a business, such as ensuring a future trained workforce, quality suppliers, and even a robust economy. 3. Choose Causes That Have Synergy with Mission, Values, Products, and Services.
When corporations contribute to causes that make sense, we find consumers are less suspicious, investors are less likely to judge the effort as peripheral, and employees are more likely to have the needed expertise and passion to volunteer. 4. Choose Causes That Have Potential to Support Business Goals: Marketing, Supplier Relations, Increased Productivity, Cost Reductions. Starbucks was clear that support for shade-grown coffee was important for the environment, but it also ensures a long-term supply of quality coffee. the corporation chose to support a social issue that had potential for contributing to business goals, as well as a connection to the company’s mission, values, communities, and products and services. 5. Choose Issues That Are of Concern to Key Constituent Groups: Employees, Target Markets, Customers, Investors, and Corporate LeadersThe successes of most social initiatives have clearly relied on the connection and resonance the efforts have with one or more of these key constituent groups. Such connection should therefore be factored into decisions on what causes to support. 6. Choose Causes That Can Be Supported over a Long Term Achieving maximum benefits for the company (and the cause) often depends on long-term commitments, frequently considered three or more years. As with most communication efforts, it takes numerous exposures to messages and events before an effort is noticed and before targeted audiences for fundraising efforts and especially behavior change campaigns will act. It also most often takes a long period of time to make a dent in a social problem, whether supporting medical research for cancer cures or reducing levels of toxic emissions from manufacturing plants. Long-term commitments can also be more economical, as early years in program efforts are often consumed with steep learning curves and coordination with cause partners, and efforts get more efficient in subsequent years

Q. How do you determine which social initiative must be chosen to tackle a social problem?

A.
1. Select Initiatives That Best Meet Business Objectives and Goals. managers should identify priority needs that might be met through supporting cause efforts, considering financial, marketing, corporate reputation, operational, and employee related goals.
2. Select Initiatives That Meet Priority Needs for the Cause. Initiatives that have the potential to meet business objectives and goals are then evaluated against priority needs that have been identified for a cause, zeroing in on those with the most perceived potential to meet both needs.
3. Select Multiple Initiatives for a Single Cause, Adding Ones Missing for Current Cause Efforts. when a company engages in a variety of initiatives to support a chosen social issue, it increases the likelihood that the company will be clearly associated with the cause,and at the same time will be able to provide more support for the cause than it might through just one initiative.
4. Select Initiatives Representing the Most Potential for Strong Community Partners.
Companies should also evaluate potential initiatives relative to their ability to create relationships with partners in the nonprofit as well as public sector, ones that will add resources as well as credibility to the initiative
5. Select Initiatives Where You Have a History of Experience. One consideration when choosing among potential new initiatives is the company’s track record and experience in developing and managing prior initiatives, providing an opportunity to capitalize on lessons learned and to be up and running with greater efficiencies.
6. Select Initiatives That Will Leverage Current Abundant Resources. Consider which initiative(s) will leverage current resources, especially those that are both highly valued by the cause and underutilized by the company or that can be provided at low cost

Choosing Social Issues to Support
1. Choose only a few social issues to support.
2. Choose those that are of concern in the communities where you do business.
3. Choose issues that have synergy with mission, values, products, and services.
4. Choose issues that have potential to support business goals: marketing, supplier relations, increased productivity, cost reductions.
5. Choose issues that are of concern to key constituent groups: employees, target markets, customers, investors, and corporate leaders. 6. Choose issues that can be supported over a long term.
Selecting Initiatives to Support Social Issues
7. Select initiatives that best meet business objectives and goals.
8. Select initiatives that meet priority needs for the cause.
9. Select multiple initiatives for a single cause, adding ones missing for current cause efforts.
10. Select initiatives representing the most potential for strong community partners.
11. Select initiatives where you have a history of experience.
12. Select initiatives that will leverage current abundant resources.
Developing and Implementing Program Plans
13. Form internal, cross-functional teams to develop plans.
14. Include community partners in plan development.
15. Establish clear objectives and measurable goals (outcomes) for the company.
16. Establish clear objectives and measurable goals (outcomes) for the cause.
17. Develop a communications plan.
18. Identify and plan for additional strategic elements.
19. Get senior management buy-in.
Evaluating Efforts
20. Determine purpose of evaluation.
21. Measure and report resource outputs.
22. Measure and report outcomes for the company, based on initiative objectives and goals.
23. Measure and report outcomes for the cause, based on initiative objectives and goals.
24. Monitor status of social issues that initiatives are supporting.
25. Allocate adequate resources for measurement and reporting.