Anda di halaman 1dari 6

VINIT JAIN

08D1662
BBA B
ADVERTISING MANAGEMENT
INTRODUCTION TO CORPORATE SOCIAL RESPONSIBILITY

Corporate social responsibility ("CSR" for short, and also called corporate conscience,
citizenship, social performance, or sustainable responsible business) is a form of corporateself-
regulation integrated into a business model. CSR policy functions as a built-in, self-regulating
mechanism whereby business monitors and ensures its active compliance with the spirit of the
law, ethical standards, and international norms. The goal is embrace responsibility for, an
encourage a positive impact through its activities on the environment, consumers, employees,
communities, stakeholders and all other members of the public sphere. Furthermore, CSR-
focused businesses would proactively promote the public interest by encouraging community
growth and development, and voluntarily eliminating practices that harm the public sphere,
regardless of legality. CSR is the deliberate inclusion of public interest into corporate decision-
making, and the honoring of a triple bottom line: people, planet, profit.
The term "corporate social responsibility" came in to common use in the early 1970s, after many
multinational corporations formed. The term stakeholder, meaning those on whom an
organization's activities have an impact, was used to describe corporate owners
beyond shareholders as a result of an influential book by R. Edward Freeman, Strategic
management: a stakeholder approach in 1984. Proponents argue that corporations make more
long term profits by operating with a perspective, while critics argue that CSR distracts from the
economic role of businesses. Others argue CSR is merely window-dressing, or an attempt to pre-
empt the role of governments as a watchdog over powerful multinational corporations.
CSR is titled to aid an organization's mission as well as a guide to what the company stands for
and will uphold to its consumers. Development business ethics is one of the forms ofapplied
ethics that examines ethical principles and moral or ethical problems that can arise in a business
environment. ISO 26000 is the recognized international standard for CSR (currently a Draft
International Standard). Public sector organizations (the United Nations for example) adhere to
the triple bottom line (TBL). It is widely accepted that CSR adheres to similar principles but with
no formal act of legislation. The UN has developed the Principles for Responsible Investment as
guidelines for investing entities.



CORPORATE SOCIAL RESPONSIBILITY AT BEN & JERRYS
Corporate social responsibility (CSR) or corporate citizenship entails companies behaving in a
socially responsible manner, and dealing with other business parties who do the same. With
growing public awareness and demand for socially responsible businesses, it is little wonder that
companies of today take corporate social responsibility into account when planning future
socially responsible business operations. This case study examines one such example of
corporate social responsibility exemplified by Ben & Jerrys.
Ben & Jerrys is a Vermont-based manufacturer of ice cream, frozen yoghurt and sorbet, was
founded in 1978 and was subsequently acquired by Unilever. "Business has a responsibility to
the community and the environment" is Ben & Jerry's mantra and it certainly walks the talk
when it comes to corporate social responsibility.

Engaging the Community through Community-based Projects
One approach to engaging in corporate social responsibility is through community-based
development projects. Community-based and community-driven development projects have
become an important form of development assistance among global socially responsible
companies. An economic relationship implies a strategy of engaging the wider community into
the core business activity of the company so that communities become embedded in corporate
supply chain strategy to create a sustainable business.
An example of this approach can be seen in the Vermont Dairy Farm Sustainability Project,
which was launched by Ben & Jerrys in 1999. This CSR project sought to develop practical
methods that could be used on typical dairy operations to safeguard water quality from nitrogen
and phosphorus run-off, while not sacrificing the economic viability of the farm and making the
farm a sustainable business.
According to the Ben & Jerrys social and environmental assessment 2004 report, the result of
this three-year study demonstrated that farmers could reduce nutrient levels without decreasing
crop size and that improved water quality and cost savings resulting from reductions in the
amount of nutrient use on the farm would be beneficial for the environment as well as the
farmers bottom-line. These would thus help the farm become a more sustainable business.
Corporate Philanthropy
Ben & Jerrys also donates a portion of its pre-tax profits to corporate philanthropy as part of its
efforts to be more socially responsible. Corporate philanthropy is employee-led through the Ben
& Jerry's Foundation and Community Action Teams (CATS) at each site.



Methods of Corporate Social Responsibility at Ben & Jerrys
Ben and Jerry were quick to align their actions and their social causes with their brand. They did
not simply search for causes haphazardly, but instead focused on causes that were in some way
related to ice cream. Their philanthropic activities range from giving away free ice cream to
using select scoop shops to bring job training opportunities to the underserved and
disenfranchised. One of the impressive characteristics shared by many of Ben & Jerrys social
mission activities is their longevity. Many of their events are long-standing traditions. For
example, Free Cone Day dates back to May 5, 1979.
Ben and Jerry decided to give away free ice cream in celebration of being in business for an
entire year. This is still an annual tradition today, with 871,271 free cones given out worldwide
in 2003.
Ben & Jerrys social mission activities definitely extend well beyond ice cream giveaways. In
fact, they focus on three main areas: economic and social justice, community, and the
environment. Ben & Jerrys takes a fairly systematic approach of identifying potential projects.
They take a look at their core competencies and resources, and try to find ways to do them in a
fashion that has a more positive impact on society, while maintaining product quality. One major
portion of Ben & Jerrys operations is the purchasing of ingredients.
The company has explored several different methods in order to purchase ingredients in a way
that has a positive social impact. This is referred to as the Program for Socially-Aligned
Sourcing. Through this program, Ben & Jerrys looks for socially responsible suppliers that they
can partner with while not passing on any extra expense to the consumer. Ben & Jerrys first
focused on the material the company uses the most: dairy!
They made a commitment to St. Albans farmers in 1997 to pay them a premium for dairy
products while the farmers pledged not to use rBGH on their cows. rBGH is a growth hormone
that causes cows to produce more milk. Ben & Jerrys is against the use of rBGH because they
believe there is not a need for excess milk, they support the humane treatment of animals, and
they have concerns about rBGH and related chemicals being passed on to the consumer via the
milk.
In addition to milk, Ben & Jerrys is finding socially responsible ways to purchase chocolate,
vanilla, coffee, bananas, and strawberries. Most wholesalers do not pay farmers a fair price for
their products. Ben & Jerrys is doing their part to ensure these farmers receive a livable wage
for their products. Basically, there is one individual at Ben & Jerrys that scours the world
looking for democratically run co-ops or farming associations that are trying to look at the
sustainability of their future. Ben & Jerrys not only pays them a premium for their products, but
they also help them improve their business. Ben & Jerrys teaches the farmers about long-term
contracts and helps them with innovative financing. This fiscal improvement then allows them
to spread out the money they earn between harvests. In the coffee market specifically, Ben &
Jerrys will soon have Fair Trade Certified suppliers. They actually already pay farmers a fair
wage, however it will soon be official through a global fair trade organization. This change will
help such organizations inform consumers about the sources of their ingredients.
In addition to paying farmers livable wages, Ben & Jerrys also carries out socially-aligned
sourcing by purchasing ingredients from suppliers that have their own social mission. One such
supplier is Greyston Bakery, which is owned by the Greyston Foundation of Yonkers, New
York. This organization manages businesses and programs whose goals are personal
empowerment and social improvement. Ben & Jerrys purchases a portion of the brownies used
in Chocolate Fudge Brownie and Half Baked from Greyston Bakery. Although Ben & Jerrys
pays a premium for these brownies, the extra expense is not passed onto the consumers.
However, that additional money earned by Greyston Bakery has been used to provide job skills
to individuals who face barriers to employment. Ben & Jerrys also provided technical advice to
Greyston during the construction of a new plant that will more efficiently produce brownies.
Another unique social mission extension of the Ben & Jerrys brand is the Partner Shop Program.
Partner Shops are owned and operated by nonprofit organizations.
In addition to paying farmers livable wages, Ben & Jerrys also carries out socially-aligned
sourcing by purchasing ingredients from suppliers that have their own social mission. One such
supplier is Greyston Bakery, which is owned by the Greyston Foundation of Yonkers, New
York. This organization manages businesses and programs whose goals are personal
empowerment and social improvement. Ben & Jerrys purchases a portion of the brownies used
in Chocolate Fudge Brownie and Half Baked from Greyston Bakery. Although Ben & Jerrys
pays a premium for these brownies, the extra expense is not passed onto the consumers.
However, that additional money earned by Greyston Bakery has been used to provide job skills
to individuals who face barriers to employment. Ben & Jerrys also provided technical advice to
Greyston during the construction of a new plant that will more efficiently produce brownies.
Another unique social mission extension of the Ben & Jerrys brand is the Partner Shop Program.
Partner Shops are owned and operated by nonprofit organizations.
Ben & Jerrys waive off the franchise fees for these scoop shops and also provides training and
support for the nonprofit. In turn, the Partner Shops provide job training skills to individuals in
the community, often focusing on disenfranchised youth. A lot has been done in 2003 to help
this program grow. Many Partner Shops have been paired with traditional scoop shops in order
to ensure their success. The goal is to eventually have a Partner Shop in every city that has a
traditional scoop shop. Through these Partner Shops they hope to bring wealth to all members of
these communities.





SOCIAL RESPONSIBILITY IN ADVERTISING

Corporate Social Responsibility (CSR) emphasizes that firms should think about ALL
"stakeholders" rather than just the "shareholders" in ALL of its operations (Value Chain)
(Stakeholders as Shareholders, 1996). It seems only logical that business leaders should
engage in responsible decision making and behavior in their personal and professional roles. Yet,
critics of CSR contend that the job of the business is to focus only on making money; the
notion that the corporation should apply its assets for social purposes, rather than for the profit of
its owners, the shareholders, is irresponsible (Atkins, 2006). However, these critics fail to
realize that CSR is an investment that will actually help a companys bottom line because
consumers increasingly value supporting businesses that are socially responsible (Good
Business Deeds, 2004). Three companies that have recognized this sentiment include Ben &
Jerrys, McDonalds and Avon as shown by their web sites and media communications. Ben &
Jerrys web site goes beyond most companys efforts at corporate social responsibility in that is
supports a very liberal political agenda and more closely links the The company provides
information about food, nutrition and fitness as well as its sponsorships of athletic events such as
the All American High School Boys and Girls Basketball Games, AVP Volleyball, Nascar and
the FIFA World Cup. McDonald even features an entire section on social responsibility,
detailing its commitments to all stakeholders including customers, the community, and
employees as well as making efforts to protect the environment and to engage in responsible
purchasing with its suppliers of the company to its views, referring to itself as "the socially-
minded ice cream maker". One recent press release describe how Ben & Jerry shop owners have
painted, planted, cleaned, and fixed up a children's school in Puerto Morelos, Mexico. Yet
another press release promotes the increase use of fair trade certified products. Not being shy
about political alliances, the company mentions that it has joined forces with the Consumer
Federation of America, the National Farmers Union and others. The company makes extensive
use of media communications to publicize its efforts for social responsibility. Yet, McDonald
efforts appear to be a response to prevent damage as opposed to a proactive effort for change and
arent as interwoven with the company identify as social responsibility appears to be for Ben &
Jerry and for Avon. These campaigns do appear to help elevate the image of McDonald that has
been greatly tarnished by the book and movie Fast Food Nation which details the poor quality of
the company food and its low wages and poor working conditions. com/)Avon brands itself as
"the company for women". Avon describes how it has partnered with the United Nations
Development Fund for Women to promote women empowerment and end violence against
women and how it supports International Women Day which remembers the efforts to end poor
conditions for women working in sweat shops.