Organizational and Managerial
Communication
Chapter 14
Ethics – seasoning or ingredient?
&
Corporate Social Responsibility
Peggy Simcic Brønn
1
Two views of ethics
• Seasoning metaphor
– Salt to camouflage the bad taste?
• Ingredient metaphor (integrated view)
– Integral part of the meal?
– Integrating character with actions.
Peggy Simcic Brønn
2
What is ethics?
• Derived from Greek ethos
• Rules or standards of right behavior towards
others
• Includes teaching these rules or standards and
their practical application
• Aristotle
– Who we are is as important as what we do
– Have to start with the character of the person, its
formation and content – the whole human being
Peggy Simcic Brønn
3
Connection to corporate communication
• Formulating and sending messages that influence
many people
• Relationship between stakeholders is an ethical
one
• How one relates to others
• Ethics inextricably connected to corporate
communication
• Ignoring this can have consequences for
organization and ourselves
Peggy Simcic Brønn
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Responsibility and dialogue
• Indirect responsibility
• Openness to what is being marketed
• Willingness to engage in dialogue
– Those who are part of one’s own organization
– Those to whom the messages are directed
• Lack of communication fails to respect the
other party’s humanity
Peggy Simcic Brønn
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Identity, Brand Building and Ethics
• Closely related
• The process involves many people
• Two levels
– Meeting between character of individuals and
profession or organization
– Organization itself – definition of what it wants
to be – its values and standards
• Act ethical as long as it is profitable?
Peggy Simcic Brønn
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Moral Preparedness
• Brand building requires serious reflection
• Identity is not invented overnight
• Ethical ideas need to be stated up front as
both internal and external signals
• Individuals must decide what their concept
of the good life is
• Read Plato
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Corporate social responsibility
• A mission or purpose for existing that includes
more than creating shareholder value and profits.
• Corporate citizenship -- policy and practice of a
corporation’s social involvement over and beyond
its legal obligations for the benefit of society.
Peggy Simcic Brønn
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PHILANTHROPIC
ACTIVITY
Improve the quality of life
Be a good corporate citizen
Contribute to the community
ETHICAL RESPONSIBILITY
Avoid harm
Do what is right, just, fair
LEGAL RESPONSIBILITY
Play by the rules of the game
Obey the law -- it is society’s codification of right
and wrong
ECONOMIC RESPONSIBILITY
Be profitable
Pyramid of Corporate Social Responsibility, Carroll 1991.
Corporate Image Dimension
• Values and Programs
– Concern with the environment
• programs to protect or improve the environment and
make more effective use of natural resources
– Social Responsibility -• contributing to community programs, supporting artistic
and social activities and generally trying to improve the
welfare of society
Peggy Simcic Brønn
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Corporate citizenship issues
•
•
•
•
•
•
•
•
•
Corporate governance
Environment
Human rights and the workplace
Fair trade
Ethical investment
The arms trade
Tobacco
Animal welfare and protection
Education
Peggy Simcic Brønn
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If they don't say enough about their charity links
consumers believe that companies are hiding
something and if they say too much they believe
that charities are being exploited by the big
corporations. It makes the promotion of such
schemes one of the most delicate jobs in
marketing. Go too far one way and consumers
believe you are using the charity, go the other way
and they will not even know of your involvement
(Tom O'Sullivan, 1997).
Peggy Simcic Brønn
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Cause related marketing
The process of formulating and implementing
marketing activities that are characterized by
contributing a specific amount to a non-profit
organization that in turn causes customers to engage
in revenue-providing exchanges.
C. Caywood, 1997
Linking a worthwhile charitable cause in a market to
the growth of a business through the fusion of
marketing, public relations, promotion, and special
events.
Mullen, 1997
Peggy Simcic Brønn
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Cause related marketing
Using marketing money, techniques and strategies to
support worthwhile causes while at the same time
building the business.
Commercial activity by which businesses and
charities or causes form a partnership with each
other to market an image,product or service for
mutual benefit.
Adkins, 2000
Peggy Simcic Brønn
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Need for CSR as
part of mission
• CSR must have prominent place in firm’s core
mission and vision
• Mission should be well explained, widely
understood and shared
• Must be willing to ‘walk the talk’
Peggy Simcic Brønn
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Organizational Strategy
(Mission statement reflecting corporate position
on social responsibility)
Corporate Social Responsibility Strategy
(Which charities/causes, etc. to support)
CSR Communication Strategy (CRM)
(Strategy for communicating organization’s
position on social responsibility)
Peggy Simcic Brønn
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• Skeptics
–
–
–
–
–
distrust of firm to actually donate
perceived triviality of donated amount
perceived inequity of donation to firm benefit
potential misuse of CRM campaign
question motivations
Peggy Simcic Brønn
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Norwegian Research -- 1999
Awareness of companies supporting causes
Likely to switch to brands that claim to help a cause
Likely to pay more for a brand that supports a cause
More likely to buy product that supports a cause
Peggy Simcic Brønn
USA
UK
Norway
79%
76%
54%
78%
68%
86%
45%
N/A
7.5%
35.5%
29.2%
46.3%
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Research from Norway
• It is less important what
companies support -- rather it is
more important that companies
support something.
• For Norwegians, the motivation
of the company is more important
than what is supported.
• The more cynical a company’s
motivation, the more consumers
are skeptical.
• This is particularly true of
customers’ with higher education.
• Consumers want information that
companies support good causes.
• CRM creates extra value for the
customer.
• CRM is accepted even when
consumers know it is being done
to get them to purchase.
• Given that price and quality are
equal, brands that support good
causes are preferred.
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• It is important that
consumers know how
much money is given and
what it is being used for.
• Norwegians are split in
their opinions that there
should be a natural link
between the giver and
receiver to achieve
believability.
• Important aspects for
credibility:
– time span -- must be
long-term
– size of support must be
significant
Peggy Simcic Brønn
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• Most companies in Norway
support or have supported a
non-profit organization (non
sports)
• Most support is through
donations
• Estimated corporate support ca.
750 million NOK
• Ca. 50% support national
causes, ca. 36% international
and the rest local
• Only about 1/4 communicate
their support, mostly through
advertisements
• Firms use support to position
themselves, to create goodwill
with stakeholders, to show
support for society and to create
confidence in their brand,
identity and image
• Showing social responsibility is
the most important
• Almost no company evaluates
the effectiveness of these
programs
Peggy Simcic Brønn
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“The next big thing in brands is social
responsibility. It will be clever to say there
is nothing different about our product or
price, but we behave well.”
Wally Olins, corporate identity and image guru,
quote in The Economist, 08.09.2001
Peggy Simcic Brønn
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