Power of social responsibility

Times have changed, and how! Once regarded as charity, corporate social responsibility (CSR) has metamorphed from doling out goodies to brand building strategically with an underlying idea of reciprocity, helping others with the expectation of receiving some form of benefit in the future. The link between financial rewards and socially responsible behavior is substantiated by recent academic research published in MIT Sloan Management Review which proves that consumers will pay a premium for ethically produced goods.

CSR is by no means a new concept. The term for corporate self-regulation and promotion of the public interest, beyond financial demands of shareholders, has been around since the 1970s. With globalization, growing social awareness, and media coverage on climate change, the public demand for businesses to take responsibility for the impact of their actions on the environment, customers, employees, communities, and other stakeholders, gained momentum during the later part of the 1990s and early 2000.

Being a good corporate citizen has become the mainstream and retailers are doing a commendable job in fulfilling their corporate social responsibility. Future Retail, an active player in the field, feels employee involvement is very important in every activity they do, and this will help in inculcating a sense of belongingness among them and result in internal branding for the organization, says Atul Takle, Head Corporate Communication, Future Retail. Another initiative “The Power of One” where all Big Bazaar stores have an option for the customers to pay Rs 1 in addition to their bill helps destitute children. Besides, customers are also encouraged to donate old toys for redistribution to the poor children at Pantaloons stores.

The recent election witnessed many retailers like Spykar Lifestyles, Louis Philippe coming forward to encourage more and more people to vote by giving discounts on their purchases by showing indelible ink on their forefinger. What did they get in return? They gained those customers who had till now not explored these outlets. Publicity was another aspect attached to this drive to gain on socially responsible ground.

Footwear giant BATA promotes entrepreneurial spirit in the small-scale businesses located in the vicinity of its factories so that they become independent associates and partners in progress with the company. This will also help in generating employment in the area.

Similarly, increasing the number of fast moving consumer goods, HUL has ever since worked on their CSR credentials, contributing in their own ways to a better world.

A Brand Building Strategy for Retailers

Experts feel that brands are social constructs. They are a part of society so the only way they can stay relevant and have a compelling story and reason for being is to reflect the world – as and when it changes. Successful brands are therefore those that are managed as long-term economic assets within a social context. They recognize that by not doing so, only focusing on the short-term bottom-line, they risk of becoming forgotten.

Many retail brands are also creating robust CSR performance and commitment to differentiate themselves from their competitors.  One of the most salient examples is Body Shop. Its strong social conscience and stand against animal testing, coupled with the consistent quality of its products, pioneered a new category in personal care.

More recently, service and business brands are also starting to realize CSR’s merits in building differentiation as  Cartridge World too is promoting Green movement by its mantra to Reduce -- Reuse – Recycle cartridge, in that order of priority at Cartridge World stores.

Unlock the power

Retailers have multiple stores in different cities and access to millions of consumers. The way in which retailers –big or small will embrace CSR will impact its future performance by not only helping gain loyalty from existing customers, but also help in gaining new customers.