User:Hrp88007/sandbox/CSR is a strategy for the development of brand image

Definition of CSR

CSR (Corporate Social Responsibility) is a self-regulating body or a business model that assists organisations in becoming socially accountable to the public, itself and their stakeholders by practising and indulging into CSR activities that influence corporate citizenship. However, organisations have now become conscious in practising CSR activities in order to maintain economic, environmental and social challenges that also impact positively and influence society and stakeholders, which eventually help in brand image development (Chen, 2020). On the other hand, CSR is also defined as a private international business organisation that helps in contributing to the society and community goals across the world by means of CSR activities including philanthropic, activist, charitable nature by engaging, supporting and volunteering the practices related to ethical-orientation. CSR concerns environmental protection and enhancement instead of only contributing negatively to society.

CSR activities that lead to brand image development

Improvement in organisation dynamics

The workforce of the organisation is inclined to feel motivated during work. The awareness of social responsibility and their contribution towards it increases the goodwill and motivate them to perform well for society and environment, which in turn boost employee’s morale and productivity that significantly help in enhancing organisational dynamics and leads to brand image and reputation development in the market (Chen, 2020).

Contributes to community improvement

The CSR activities contribute to the improvement of the community by solving social problems in society. The companies must contribute to social problems because everyone has a moral obligation inherent in it and the big and small organisations are not exempted for doing the things that harm the environment and society. Instead, the contribution can improve social practices in society.

Increase attractiveness to stakeholders and investors

The investors and stakeholders made their perception about investing in a company by analysing their CSR practices. They use social responsibility as a criterion for making their intent to invest or not in a company (Chen, 2020). Hence, the effective social responsibility management by the organisation and being consistent in the CSR works is a significant instrument for improving stock prices of the company, as it inspires and develops confidence among business partners and associates.

Improvement in profit margins of the company

Company's Practices regarding social responsibility signifies that it incorporates ethically right practices in the business process. In today's world companies are becoming aware of the global, national and local issues, and their buying perception has greatly influenced the action taken by the company for those issues. Thus, consumers tend to buy more from those companies that show their concern regarding social issues and take action over those issues to reduce it.

Nurture assets and establish a good reputation in the market

Taking serious action regarding issues and encouraging others to take them seriously too create greater influence among customers. Additionally, the greater asset of the business is considered as the company's name and its brand, which is nurtured by practising CSR activities that eventually help in establishing a good reputation in the market. 45% of the consumers are willing to buy from those companies that have proven themselves as socially responsible (Luenendonk, 2019).

Different ways to improve brand image using CSR

Selecting the right advocacy

Selection of specific social responsibility programs influenced by brand image can help in improving reputation. For instance, an automobile company can start a program and set a target related to cleaner air. On the other hand, pharmaceutical companies can choose health advocacy. Apart from these, some of the examples of real companies like technology giant Google have focused on renewable energy targets as CSR practices, and the program name is Google Green Program (Luenendonk, 2019). The advocacy of the program is the efficient use of renewable power and resources that assisted in brand image enhancement of the company. This is a significant way of improving brand image by sticking to social responsibility.

Involvement of everyone

CSR practices may be the initiative of organisation management. However, the implementation of practices is a collective effort. In the initiative or program involvement of employees in the process and the collaborative working efforts can increase their efficiency as well as productivity (Bacinello et al. 2020). Collective work upon a single project can boost their morale and increase enthusiasm in work, as it is said that "happy employees are more productive". For instance, Xerox, a printing giant, has initiated a charitable program named Community involvement program that assists organisations to involve the community in the practices by making community-oriented activities.

Use of social media platform for CSR efforts

Nowadays, social media platforms are crucial for marketing campaigns of some companies, as it has enabled the business operations to gain a wider reach and introduces the greater opportunity for altruistic effort (Ferrell et al. 2019). Social media is so useful and valuable in today's world that the management has developed a separate social media team, as per their rankings for management of social media accounts of the organisations. A social media platform is considered to be a perfect avenue to share activities of CSR. It is due to the fact that media is not everywhere to cover the CSR efforts and achievements of the organisation. However, social media platforms are still an effective way to let everyone know about an organisation's CSR efforts (Hu et al. 2020). This is an effective way to inform the public about CSR practices and increase awareness, which requires continuous active status on social accounts that further assist in brand equity increment.

Talk about CSR in events.

Certain events may take place and talk about CSR target achievement can help in increasing customers, stakeholders and investors’ attention. Additionally, the media coverage at the time of the event can spread positivity about the company that it has taken their social responsibilities seriously and act for the mitigation of those issues and achieve their set targets regarding CSR programs (Murphy, 2019). Therefore, talking about the achievement and new CSR programs that contribute to avoiding social problems and enhance environmental assets. Taking action for good causes eventually develop a sweet corner in everyone's heart and make them feel that the company is doing something for the ecosystem and humanity. It significantly develops the sense of respect and influence buying perception, which ultimately helps in increasing the brand reputation and image of the company.

Assure that CSR activity reflect the brand

The CSR activities must be interlinked with the brand attributes, which is another way of improving brand image. For instance, if the company is for automobiles and their products cause air pollution, then they must focus on cleaning air programs rather than cleaning water bodies. It concludes that CSR activity must represent the brand and attributes of the company in order to enhance their brand image in the eyes of the public and investors (Mahmood and Bashir, 2020). The brand sincerity plays an important role in the development of the brand image. In the press release and media coverage, the news regarding CSR activities outcomes must be true to maintain the integrity and increase trust.

Benefits of CSR activities that contribute to brand recognition

Positive environment influence

CSR activities can influence a positive environment at the workplace, as the employee's responsibility is to perform ethical work within the organisation that shows the honesty of the employees in terms of experience and capabilities. Therefore, the ethical practices in the organisation can assist in enhancing the personality of employees that bring positive change among the relationship of employee and employer, which also assist in gaining trust and building strong relationships within the organisation (Nazri et al. 2020). This is the reason that influences a positive environment in the workplace.

Building customers loyalty

Understanding social responsibilities and working for it can influence the customer's perception. Ethical practices done by the company are crucial parameters for judging their products and gaining customer loyalty (Khuong et al. 2019). For example, a customer that has been treated unfairly and can be overcharged or cheated about any products and services can significantly lose their interest, and it also does not repeatedly buy from the organisation of the particles. These are considered unethical practices in the marketplace that leads to brand image degradation. Contrarily, treating people equally and charging the right amount for the services and goods can increase customer loyalty and reflect on brand image.

Employees retention

CSR as a strategy can influence people and employees in retention as the programmes concerned employee’s growth including fair treatment and compensation for their work and dedication contribute to organisational productivity and growth (Ferrell et al. 2019). Ethical policies and strategy following can also help in employee retention.

Prevention of legal problems

The companies that perform ethical activities and CSR activity can help in preventing legal problems of the business by complying with workers safety, labour law and environmental practices. Complying with these practices leads to positive publicity of the organisation that is another benefit of CSR.

Enhance brand reputation and image

Business practices are aware of public and target audience importance in making positive perception through word of mouth referral that significantly leads to brand image enhancement (Luenendonk, 2019). Thus, CSR activities are a great source of increasing company reputation and result in positively affecting brand equity of the company.

References

Bacinello, E., Tontini, G. and Alberton, A., 2020. Influence of maturity on corporate social responsibility and sustainable innovation in business performance. Corporate Social Responsibility and Environmental Management, 27(2), pp.749-759.

Chen, J., 2020. Corporate Social Responsibility (CSR). Available at: https://www.investopedia.com/terms/c/corp-social-responsibility.asp [Accessed on 15th October 2020]

Ferrell, O.C., Harrison, D.E., Ferrell, L. and Hair, J.F., 2019. Business ethics, corporate social responsibility, and brand attitudes: An exploratory study. Journal of Business Research, 95(1), pp.491-501.

Hu, B., Zhang, T. and Yan, S., 2020. How corporate social responsibility influences business model innovation: The mediating role of organizational legitimacy. Sustainability, 12(7), p.2667.

Khuong, M., An, N., Doanh, T., Tri, L., Phuong, N. and Thanh, T., 2020. The impact of legal environment on business success through the practices of corporate social responsibility. Management Science Letters, 10(13), pp.3033-3040.

Luenendonk, M., 2019. Using Corporate Social Responsibility (CSR) to Improve Your Brand. Available at: https://www.cleverism.com/using-corporate-social-responsibility-improve-brand/#:~:text=Social%20responsibility%20improves%20a%20company's%20public%20image.&text=If%20you%20notice%2C%20companies%20with,way%20to%20advertise%20their%20company. [Accessed on 15th October 2020]

Mahmood, A. and Bashir, J., 2020. How does corporate social responsibility transform brand reputation into brand equity? Economic and noneconomic perspectives of CSR. International Journal of Engineering Business Management, 12(1), pp.1847979020927547-1847979020927548.

Murphy, B. C., 2019. Why Social Responsibility Matters to Businesses. Available at: https://www.investopedia.com/ask/answers/041015/why-social-responsibility-important-business.asp [Accessed on 14^th October 2020]

Nazri, M.A., Omar, N.A., Aman, A., Ayob, A.H. and Ramli, N.A., 2020. Corporate Social Responsibility and Business Performance in Takaful Agencies: The Moderating Role of Objective Environment. Sustainability, 12(20), pp.8291-8295.

External links

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