CORPORATE SOCIAL RESPONSIBILITY AS A BRANDING TOOL IN EMERGING MARKETS

Too often these days, branding just means “design”. People take it to only mean logo, name and colors which is like the final coat of paint on the finished house. Great branding is that, plus the entire rest of the home down to the foundation. A company’s brand is every facet of the way they’re perceived in the minds of the public. A large (and quickly growing) part of this perception is a company’s commitment to corporate social responsibility (CSR).

CSR, sadly, is often just a buzzword tossed around boardrooms, or a box that needs to be checked for the sake of PR, not because of any actual belief that a corporation actually has an obligation to social responsibility. This is the wrong way to approach it, and in this day and age when no internal document can ever be considered leak-proof, and with thousands of amateur internet sleuths looking for a break, a half-assed CSR campaign isn’t going to fool anybody.

The good news is that a company’s CSR doesn’t have to be a major expense, and done well, it can produce a great ROI in the same way an effective ad campaign can. The key is to make sure you’re getting all the branding bang for your buck out of the campaign, but without seeming like that was the point all along. In general, good CSR efforts are those that are genuine. People will sniff out the fakes pretty quickly, so make sure your CSR campaign is coming from the right place.

CSR in emerging market countries

With the world’s traditional economic powerhouses still stuck in low growth mode, businesses continue turning to the developing world en masse, as that’s where all the growth seems to be coming from. While each country is unique, companies all find similar challenges trying to adapt to new cultures, consumers, regulations, infrastructure etc. One key challenge for these companies is projecting a positive image of their brand, which is important even if only to hire a workforce, but critically so to build up a customer base.

There is a natural human tendency to be suspicious of outsiders, and this is especially true in emerging market economies where foreign companies have often engaged in something closer to pillage than commerce. But consumers in these countries also tend to be open to new brands and have few fixed loyalties. Part of the key to winning their business is in making a concerted effort to the betterment of their country and the lives of the people in it.

Charity work as part of a branding strategy

Just about any good deed a company can do can generate positive publicity. Whether it’s a company outing to do volunteer work, or donating money or essentials to those in need, it creates a feel good story that local press will likely want to cover. Or as an example, a company is readying the launch of their new breakfast cereal in an emerging market. What story is more likely to run, the press release they send out with launch details, or the story of them donating truckloads of it to poor families in remote areas? Of course a campaign like this can’t replace more traditional marketing, but it can certainly complement it, plus it’s the right thing to do.

Educational initiatives

One of the best ways to lift people out of poverty is through education and training, and it just so happens that most companies expanding into a developing country will need to provide extensive training to their new employees. The smartest companies are now building actual schools for this, and teaching a range of skills much broader than simply what’s needed from their workers. Even better yet, they build and fund a school where local children can get an education and where they can hold adult education and training classes on evenings and weekends. The cost of doing this can be much lower than you might expect, and certainly is cheaper in the long term than being unable to consistently find qualified workers. The incredible goodwill generated in the community, plus being able to really make a difference in people’s lives, well, that’s just a nice side effect.

Implement a CSR strategy and stick to it

Remember, CSR isn’t just a box to be checked off, it’s an integral part of defining your brand, and in developing countries it’s one of the best ways to win new loyal customers. You should approach your CSR strategy the way you do any other project, setting targets, establishing key performance indicators, measuring results, and holding people accountable. In emerging market economies, it’s about more than your responsibility to being a member of the community in good standing, it’s about presenting your brand as dedicated to the country and invested in its future.