BRAND SOCIAL RESPONSIBILITY Presented by: G.S. Monga, Hon. Professor, University of Mumbai Mangesh Prasad Kasbekar, Assistant Professor, MET IOM, University of Mumbai Brand Social Responsibility3/26/2011 ( BSR )

WORLD’S MOST REPUTED COMPANIES * FORTUNE 500 Brand Social Responsibility3/26/2011

WORLD’S MOST REPUTED COMPANIES AppleG.E. Citigroup GoogleFedEx G.E. Berkshire HathawaySouth West Airlines Exxon Mobil South West Airlines P&G J.P.Morgon C P&G StarBucks Verizon Comm Coca Cola Jhonson & Jhonson Bank of America Amazon.com Berkshire Hathaway ATG Fed Ex Dell AT&T Microsoft Toyota IBM Mc Donald’s Microsoft Wal-Mart Brand Social Responsibility3/26/2011

Top 10 Corporate Brands Coca ColaNokia IBMTata MicrosoftSony GoogleLG GESamsung McDonald’sRIL IntelMaruti Udyog NokiaLIC Disney Airtel HP Titan * Interbrand 2011 * Brand Trust Report 2011 Top 10 Global Brands Top 10 Indian Brands Brand Social Responsibility3/26/2011

Top 10 Indian Employers Infosys Tech Google India TCS IBM Microsoft Wipro SBI Airtel HP HDFC Brand Social Responsibility3/26/2011 * BT-Indicus-PeopleStrong Annual Survey of India's Best Employers

CSR = BSR* * Corporations = Corporate Brands Brand Social Responsibility3/26/2011

Why BSR? People talk brands. A brand is a Promise A brand has to be managed with responsibility and not merely as an advertising tool. Brands have always been a part of the corporate social framework, with unclear roles and responsibilities Brand Social Responsibility3/26/2011

Research Objective To study the relevance of Brand Social Responsibility (BSR) along with Corporate Social Responsibility in the current corporate scenario To study how BSR varies across cultures, and economies. To study an effective way of Communicating BSR across stakeholders. Brand Social Responsibility3/26/2011

Nurturing BSR Developing BSR requires intensive 3Cs – Conviction – Commitment – Culture. Any irresponsibility results in reputational damage. Organisational coherence Social Welfare of Commune Brand Social Responsibility3/26/2011

Recession and BSR Recession affects :consumer wallets + brand perception transparency and corporate responsibility have become far more important to consumers in a tough economy. *Landor Associates Brand Social Responsibility3/26/2011

BSR Varies across cultures Consumers in India, China and Japan react differently to socially responsible brands 90 % Indians 88% Chinese 64% Japanese think it is important to purchase products and brands they perceive to be socially responsible * Market Global Study by PR firm Edelman Brand Social Responsibility3/26/2011

BSR Varies across cultures During Recession: 84 % Indians 77% Chinese 46% Japanese will remain loyal to socially responsible brands * Market Global Study by PR firm Edelman Brand Social Responsibility3/26/2011

Stages of Responsibility- 360º Across the Value Chain Every Touch point Each Moment of Truth Involving Every Employee & Supply Chain player Brand Social Responsibility3/26/2011

Brand Responsibility – Case of PACT Brand Social Responsibility3/26/2011

Case Study of PACT PACT is involved in every step in the life cycle of a product they make: from the origin of its ingredients, to how its marketed, to who the audience is. It produces responsibly grown and manufactured organic cotton covered by “freshtastic” design- Underwears. Working with EarthSpark and Citizen Effect, they donate a solar-powered LED light to a Haitian family for every item ordered from their Winter Lights collection.EarthSparkCitizen EffectWinter Lights collection Brand Social Responsibility3/26/2011

Communicating BSR Communicating BSR is an area that needs to be explored. The relevant partners in a BSR dialogue need to be identified- senders and receivers, are referred collectively as stakeholders Internal and External stakeholders are mutually dependant on one another, presented in relation to the company. Brand Social Responsibility3/26/2011

Communicating BSR Traditionally, companies have paid more attention to their internal stakeholders. These stakeholders’ demands and expectations may imply conflicting needs and interests. One way of addressing this issue is to group stakeholders with similar interests (authorities, business partners, financial actors, external influence and customer groups) Brand Social Responsibility3/26/2011

Communicating BSR Among the external stakeholders, the media deserve particular attention. What is portrayed in media will influence internal as well as other external stakeholders that in their turn may affect others. Their role can be seen as ambassadors of messages and opinions. If a message or an opinion is stated by a strong ambassador or a trustworthy person, it is more likely that the word goes beyond the primary reader. Brand Social Responsibility3/26/2011

The Identity- Reputation Gap Model Brand Social Responsibility3/26/2011

Conclusion Building a brand is a long term effort, but destroying it, can happen overnight. Communication of BSR does not only create awareness for CSR and support for an image of a brand, it is also a way of creating a bond between the company and its stakeholders. Brand Social Responsibility3/26/2011

Take Away…. brands : citizen brands doing good : doing well “Stronger Emotional Bond” Brand Social Responsibility3/26/2011

Take Away…. BSR can thus be the olive branch between struggling industries and consumers in cases where consumers are experiencing the highest expectations and the biggest let downs Brand Social Responsibility3/26/2011

References: Frankental, P., Corporate social responsibility- a PR invention? Corporate Communications: An International Journal 6 (1), Johnson, H.J., Does it pay to be good? Social responsibility and financial performance. Business Horizons 46 (6), Kitchin, T., Corporate responsibility: A brand extension. Journal of Brand Management 10 (4-5), Klein, J. and Dawar, N., Corporate social responsibility and consumers’ attributions and brand evaluations in product-arm crisis. International Journal of Research in Marketing, 21 (3), Lewis, S., Reputation and corporate responsibility. Journal of Communication Management 7 (4), Brand Social Responsibility3/26/2011

References: Maio, E., Managing brand in the new stakeholder environment. Journal of Business Ethics 44 (2/3), Polonsky, M.J. and Jevons, C., “Building a corporate socially responsible brand: An investigation of issue complexity ANZMAC Track 20, Werther, W.B and Chandler, D., Strategic corporate social responsibility as a global brand insurance, Business Horizons, 48 (4), Brand Social Responsibility3/26/2011

THANK YOU 3/26/2011Brand Social Responsibility