Corporate Social Responsibility's Impact on Corporate Branding
Dr. Joe Shepherd
I help companies infuse AI into their products, transform processes, and innovate in ways that will uniquely accelerate your organization.
Consumers look to find deeper meaning in everything they do (Vallaster et al., 2012). This movement, coupled with the shift from product branding to corporate branding, has created a place where corporate ethics and corporate social responsibility (CSR) find fertile ground. This article compares three papers that attempt to frame up how ethics and CSR impact brands and the messaging they put out to the market.
If it seems as though every marketing message has a political twist these days, the reason may surprise you. Graves tells us that it’s the polarizing environment, more than the advertisement or intentions of the firm, that divide us (Graves, 2017). In his article “Why Every Ad Today Feels Political (Even If It Isn’t),” Graves looks at what can happen when a firm takes a political stance in its messaging. He notes that bigger brands often make bigger targets and that the result of their stance is not always what they hope (Graves, 2017). The idea is that just because a brands messaging seems politically motivated, it may not be. The lens through which we view it provides its own color.
In the article “Sticky Ethics, Innovation, and Corporate Responsibility,” Torres explores the concept of “Sticky Values,” an idea that the reception of corporate responsibility by the general consumer is tightly coupled to several factors not directly related to the actions of the brand or its messaging. Different markets at different times and across different geographies may hold stickier ethical codes than others in a given environment (Torres, 2015). Similarly to the way prices tend to remain steady due to factors beyond logical market changes, Torres shows that the influence of some values remains greater than others based on reasons that may not be obvious (Torres, 2015).
The article “Strategically Leveraging Corporate Social Responsibility” examines the journey of 10 firms who have, to varying degrees, implemented Corporate Social Responsibility initiatives and the impact the shift from product-based marketing to corporate branding has had. The text highlights the difference between traditional brand strategy, which focuses on primary stakeholders and customers, and the idea of a good corporate citizen, who must consider secondary stakeholders who may never engage with the products and services of the firm but may have a say in its social acceptance (Vallaster et al., 2012).
As companies continue to roll out corporate branding initiatives, especially related to CSR, leaders must consider their messaging beyond primary consumer and devise messaging that resonates with those secondary stakeholders looking to engage with brands on a more value-driven, emotional level (Vallaster et al., 2012)
Furthermore, as companies embark on CSR branding efforts with the goal of creating or protecting value, careful consideration should be given to ensure their efforts don’t backfire and damage the brand (Vallaster et al., 2012). A seemingly well-intended ad campaign can become quite polarizing when consumed against a backdrop that may not have existed when the ad was conceived (Graves, 2017)
In the future, companies should consider what role corporate branding might play in competition? Should companies take a play from Porter’s Five Forces and view their corporate branding efforts as a way to compete in ways that add value to secondary stakeholders, generating more positive-sum influence (Porter, 2008)?
The key takeaway for brand leaders and those considering CSR initiatives is that reception and return on investment is not as straightforward as one might hope. As with anything in the global, hyper-connected market, one must consider the greater context in which the firm and the brand operate.
References
Christine Vallaster, Adam Lindgreen, & Fran?ois Maon. (2012). Strategically leveraging corporate social responsibility. California Management Review, 54(3), 34-60. https://10.1525/cmr.2012.54.3.34
The five competitive forces that shape strategy. . (2008, -06-30).[Video/DVD] https://www.youtube.com/watch?v=mYF2_FBCvXw&list=PLoGhzQgdhGJws7SPKJqIY8FnzGm-QCcLj&index=3
Graves, C. (2017). Why every ad today feels political (even if it isn’t). Harvard Business Review Digital Articles, 2-4. https://library.capella.edu/login?url=https://search.ebscohost.com/login.aspx?direct=true&db=bth&AN=121278655&site=ehost-live&scope=site
Torres, D. L. (2015). Sticky ethics, innovation, and corporate responsibility - ProQuest. S.A.M. Advanced Management Journal, 80(3), 12-22. https://search-proquest-com.library.capella.edu/docview/1725174671?accountid=27965