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.