Corporate Social Responsibility Team: B2 Agenda 1. Strategy 2. Introduction 3. Common CSR initiatives 4. Strategic CSR principles 5. CSR categories • Social Sustainability • Environmental Sustainability • Economic Sustainability 6. Justification of CSR 7. Conclusion 8. References Strategy 4 • Identify new user groups of SeaSpray and SeaHorse • Introducing jet ski and Rigid Inflatable Boat (RIB) racing clubs • Increase rescue/military sales team by 1 person • Increase marketing budget to £160 K • Identify additional specification for the users • Reduce production by shedding 2 production operatives • New technology investment Deployment of Strategy Year 1 Year 2 • Increase rescue/military sales team by one person and make two production operatives redundant • Review the SeaSpray and Seahorse markets and target other groups of potential customer in order to develop sales strategy • Spend 15 000GBP on media to better position our products publicly – TV ads, campaigns, attend exhibitions. • Identify enhancements for customer requirements and their costs – invest 45 000 GBP on technology • Continue new user groups identification • Invest 55 000 GBP on marketing Deployment of Strategy Year 3 Year 4 Year 5 • • • • Evaluate customer feedback on the recently implemented technology Further identify new enhancements – invest 60 000 GBP on technology Review sales strategy and evaluate against sales trend Invest further 37 000 GBP on marketing • Review sales strategy • Invest further 35 500 GBP on marketing • Invest 22 500 GBP on Technology – in reference to customer feedback on past enhancements • Invest 17 500 GBP on marketing, increase intensity in successful groups • Invest 22 500 GBP on Technology – in reference to customer feedback on past enhancements • Evaluate business strategy – assess success and rooms for improvements Introduction What’s CSR? Business decision making linked to ethical values, compliance with legal requirements, and respect for people, communities, and the environment around the world (Thomas & Nowak, 2006) Why CSR? • Correct reputation add value to companies with various ways: charge higher prices, have loyal customers and attract better human and capital support • CSR has been established in marketing as it helps the image and reputation of a company (Lii & Lee, 2012) Introduction • Traditionally in the United States, CSR has been defined much more in terms of a philanthropic model. Companies make profits, unhindered except by fulfilling their duty to pay taxes. Then they donate a certain share of the profits to charitable causes. • The European model is much more focused on operating the core business in a socially responsible way, complemented by investment in communities for solid business case reasons. (Mallen Baker, 2004) Common CSR initiatives • Sponsorship – it is suggested that can generate more money than every kind of advertising • Cause-related marketing (CRM) - has a positive effect on consumers perception and customers respond positively to CRM initiatives • Philanthropy - is related with corporate image and social recognition and can improve customers attitude towards a company (Lii&Lee, 2012) Strategic CSR principles 1. Cultivate needed talent 2. Develop new markets 3. Protect labor welfare 4. Reduce your environmental footprint 5. Profit from by-products 6. Involve customers 7. Green your supply chain (Heslin&Ochoa, 2009) CSR Categories Social Sustainability CSR Economic sustainability Environmental Sustainability 1. Social Sustainability • Sponsorship in races and clubs • Provide education about boats through establish Kids racing club • Support people that were made redundant 2. Environmental Sustainability •Greening manufacturing processes •Minimize wastes during the production through R&D •Design environmental friendly products and services •“Big cleaning day” - trade-in old boats 3. Economic Sustainability • Recycling/ re-usage components of old boats from the inventory • Partnership with other organisations Justification of CSR Inputs • • • Sponsoring activities Old boats trade-in Environmental activities • Educational activities • Collaboration with other company • Utilization of technology and marketing investments Outputs • Reduce inventory • Higher sales • Attract customers • Advertisements • Improve corporate image • Customer’s better attitude/perception toward the company • Alternative revenues Conclusion • When customer’s perception about the company CSR approach identifies with their personal beliefs, they are likely to support it. • In whole, CSR is a way for companies to do PR, improve their corporate image and increase sales. • Internally, CSR is a way to save money and reduce costs of production (Lii&Lee, 2012) References • Duncan, A. (2006). New product development: Yellowfin. http://www.article13.com/A13_ContentList.asp?strAction=GetPublication&PN ID=1363 • Fontaine, M. W., Dunn, M. P. (2012). Overview of the recreational boating industry’s aquatic stewardship through technology, innovation and education. National marine manufacturers association, 1-24. • Helslin, P. A., Ochoa, G. D. (2008). Understanding and developing strategic corporate social responsibilities. Organizational dynamics, 37(2), 125-144. • Lii, Y.S and Lee, M., (2012). Doing Right Leads to Doing Well: When the Type of CSR and Reputation Interact to Affect Consumer Evaluations of the Firm, Journal of Business Ethics, 105, 1, p. 69-81. • Mallen B. (2004). Corporate social responsibility - What does it mean?, [Online], Retrieved 8th February 2012, from http://www.mallenbaker.net/csr/definition.php • Thomas, G., Nowak, M. (2006, December). Corporate social responsibility: a definition. GSB working paper, 62, 1-20.