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Corporate Social Responsibility and Branding with Web Forum Research in the Retail Food and Drinks Sector
Deviraj Gill, De Montfort University, England
Len Tiu Wright and Mark Lemon 1.
Introduction
Corporate social responsibility CSR is an increasingly important concept for companies wishing to be perceived as ―good‖ organisations. The use of CSR by organisations is also attracting interest amongst marketing academics and
practitioners at a time when environmental and ethical issues are progressively gaining a wider public profile. It is also recognised that environmental activities are becoming increasingly important to consumers, as incorporating CSR
messages with company product and corporate brand communications adds to public perception that such companies operate with integrity. A search of the literature has identified an extensive discussion of the benefits organisations
derive by behaving in a socially responsible way. Factors including, improved financial performance Johnson, 2003 building connections with consumers Porter and Kramer, 2002 and internal benefits such as employee commitment
and reduced employee turnover Miao, 2003. In contrast consumer cynicism and lack of trust have also been identified as a current major problem. Therefore the purpose of this article is to examine the areas of corporate social
responsibility and branding from research conducted with a web forum of users in the Midlands area of the UK. Insights into consumer perceptions regarding organisations and their efforts to behave in a socially responsible way are gained
throughout the investigation.
2. Conceptual Development
2.1.
Corporate Social Responsibility
Donaldson 1982 argues that corporate social responsibility is a contract between the firm and society. This contract holds certain rights in exchange for certain responsibilities. Aaker 2008 found that chief executives believe that
corporate social responsibility pays off for an organisation and that more than 90 of chief executives think that social responsible management creates shareholder value. Environmental marketing which is also known as green marketing
involves the actions which are undertaken by an organisation aimed at improving or preserving the environment West, 2006. In a study by Peattie and Ring, 1993 78 of chief executive officers believe that green issues are important to
their organisations‘ activities; they also found that 82 of chief executives indicated that green issues would be an important consideration for businesses in the future. Middlemiss, 2003 argues that corporate social responsibility is an
important feature in building and protecting the corporate image and reputation demanded by a company‘s customer base. The Co-operative brand has been known since 1964 for its passion and drive towards trading ethically and helping
less economically developed countries. For example, the link between Fair Trade products and its brand image has resulted in the Co-operative taking conscious steps towards adopting an ethical corporate image to which consumers
can relate.
2.2.
Branding
It can be argued that brands are no longer just about adding value to a product or a service. They can represent an individual‘s lifestyle, beliefs and values, thus enabling brands to form a culture to which individuals can relate.
Incorporating green values into a brand image and behaving in a socially responsible way can act as a point of differentiation in crowded markets, whilst being perceived as ―a good company‖ by consumers. Gotsi and Wilson,
2001 argued that a sustained favourable reputation will create a corporate competitive advantage within the market place. It is argued that brands are considered to be a major tool for marketers when creating differentiation. In addition
to this they state that the combination of brand name and brand significance has become a core competitive asset in ever growing markets, Kotler and Gertner, 2002. For some organisations behaving in a socially responsible way has always
been important to them as strategically implemented CSR advertisements can be visually persuasive to build
confidence, e.g. Shell‘s advertisements in The Economist are usually visual, such as showing a fox in a green countryside environment against the background of an oil refinery.
2.3.
Communication and CSR
Many organisations, like the Co-operative and Marks and Spencer, have considered corporate social responsibility as a focal point in their business strategies and have left many ‗footprints‘ from their brand trail activities in the minds of
consumers. These footprints which all have different impacts on the consumer have developed over time. Whilst for many critics corporate social responsibility is mainly used for public relations rather than a genuine attempt to improve
the environment. For some organisations, they argue it is a genuine attempt to preserve the environment. Morsing and Schultz 2006 argue that messages regarding corporate social responsibility are likely to evoke positive reactions from
stakeholders. However Brown and Dacin 1997 argue that communications relating to corporate social responsible activities have also been proven to attract critical attention, for example Shell, who received negative publicity for the
misreporting of oil reserves in 2004. A review of its archive
d material established the ‗brand footprints‘ Marks and Spencer left when initially formed to the present day. Although this information is available for consumers in secondary
archived material, it is argued that organisations such as Marks and Spencer should take the appropriate measures to include these brand footprints in any communications to the relevant stakeholder. Failure to inform consumers and
relevant stakeholders of messages relating corporate social responsible activities would result in consumers believing that organisations are not serious about the environment and are only participating in such activities for financial gain.
Shrum et al 1995 found that consumers tend to be distrustful of environmental claims made by organisations.
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Fierman, 1991 found that 47 of consumers dismiss environmental claims as gimmicks. This is supported by a survey conducted by Mintel 2007 who found that 63 of respondents asked are cynical about the efforts of companies to
prove their green credentials, agr eeing that ‗companies are just using these issues to try to make themselves look good‘.
3. Methodology
