Unit 4: CSR - the Essential Economist Podcast

This podcast is a couple of years old, but frankly it is so good that I think it ought to be essential listening to every colleague and student preparing students for exams which feature CSR…

The podcast is streamed below.  

I have jotted down some summary notes further below which you are free to use as required.

NOTES


Interview with Daniel Franklin (2008)


The sceptics about CSR - their battle has been lost.
Focus now is what companies are actually doing, not whether it is a good or bad thing


Two good examples of CSR best practice: 

- M&S Plan A - lead from the top, but not trying to get too far ahead of customers
- GE - Ecomagination - investing in green technologies


Why has CSR become mainstream? 

- Expectations of companies have risen
- Consumers much more aware of the actions of firms
- increased scrutiny by NGOs and pressure groups
- Business reputation is at risk if they are found to have behaved inappropriately
- Environmental concerns - state of the planet
- increasing focus on risk management


How are companies getting CSR wrong? 

- Many firms make a lot of noise about CSR, but dont think or act deeply
- CSR located in the PR/marketing department
- Phrase CSR covers such a wide area of activities; companies are too scatter-gun rather than focusing on the benefits that matter to the business, shareholders and society


Can CSR be a bad thing? 

- If it is not good for the business, then it is no good
- Well-intentioned activities can end up damaging businesses (e.g. regulations, laws)


Resistance to CSR 

- Several reasons why firms ignore CSR
- Ignorance of potential pressures (may be surprised in the future)
- Deliverately ignoring CSR - can’t see the benefits or operating in a sector that is not really under pressure


CSR as an opportunity for business 

- Attracting, motivating and retaining the best people
- Need to be an organisation which top people want to work for
- Green agenda: opportunity to reduce operating costs as well as innovate to create new products and services
- A mindset of being closely attuned to changing customer and market needs



Measuring CSR 

- Difficult to measure / quantify?
- Output side: how much good is being done?
- Various rankings and reporting initiatives (but are these box-ticking exercises) + potentially provide a form of cover for firms who are not really taking CSR seriously


CSR as a global concept 

- CSR is undoubtedly spreading through the global economy
- Globalised supply chains (e.g. multinational supply chains)
- E.g. toy industry & product recalls from Chinese factories
- Firms within emerging markets increasingly looking to expand globally - now coming under scrutiny
- Growing awareness/appreciationg of CSR in China, albeit from a low-base
- Pressure/conflict between growth & CSR


Relationships between Business & CSR activists 

- Changing relationship between business & NGOs
- Less confrontational and more partnership based
- Some NGOs still very suspicious of / hostile to business
- Collaboration between the two helps develop the relationship
- Helps business reach consumers in poorer countries


CSR and the Economic Downturn 

- Is CSR a discretionary add-on or is it here to stay?
- A test of how serious businesses value CSR
- Management under pressure to justify the benefits 

Unit 4: Stunning Video - CSR, Ethics and Milton Friedman (Must Watch)

I put a Milton Friedman video on a few weeks ago. I found these two clips of Milton Friedman being questioned by a University Student on Profit and Self interest (its the same video but split into two). Its so good, it is a must for both Economists & Business Students


In the first clip the student questions him on a case whereby an old man couldnt afford to pay his electric bill. Subsequently he was cut off and dies as a result. In the second clip, he discusses the Ford Pinto scandal.
Amazing, amazing stuff.

The first clip;



The second clip;

Unit 4: CSR - BBC One Planet on Coca-Cola & Sustainability

This podcast from a special edition of BBC World Service’s One Planet makes ideal listening for students researching corporate social responsibility. The opening 8 minutes of the programme features an interview with John Brock, Head of Coca-Cola Enterprises in Western Europe, where he talks generally about the role of CSR in Coca-Cola’s strategy. Well worth a listen…


You can hear the podcast here

I have highlighted what I think are the key points from the podcast below:

BBC One Planet - a great resource we should listen to more often

John Brock - Head of Coca-Cola Enterprises:

Coca-Cola - a global brand with global profits

The world’s most iconic brand - sold everywhere

The world’s most valuable brand, but part of a brand portfolio

Sustainability - why?

The right thing to do

Makes good business sense

Three environmental focuses:

Energy conservation

Pacakaging resuse/recycling

Water stewardship

By pursuing all of these sustainability, you:

Reduce costs

increasing innovation

Becoming more efficient and effective

The reason for Coca-Cola to exist - making money ("creating value for shareholders")

So why does sustainability fit in with this objective?

Good for:

Image & reputation

Relationships with suppliers

People - employees want to be part of a company focusing on sustainability

A marketing ploy?

Why should customers believe that sustainability is anything other than a marketing ploy?

Coca-Cola

Product range includes many low or zero calorie products

Why is sustainability so popular?

Companies recognise that is simply makes good business sense - good for society; good for the profit and loss account

Swap for Swag Project

Recycling project - swapping packaging for new Coca-Cola branded merchandise

Unit 4: Critical Path Analysis notes

Critical Path Analysis Notes

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Unit 4: Decision Trees Notes

Decision Trees Notes

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Unit 4: CSR - Comic Relief, Crisps and Cause-Related Marketing

There is a telling phrase in the current series of commercials for Walkers Crisps which are being run as part of Walkers’ (Pepsico) support of Comic Relief Day 2011. In the video clip below, Gary Lineker explains that “whoever sells most, wins"…


In fact, what Lineker really means is that, whoever sells most, Walkers Crisps wins. That is not to decry the worthy efforts and support of the brand for a great cause. But the appealing truth about the Walkers Crisps campaign is that, like other successful examples of cause-related marketing, there are two winners. Cause-related marketing should be a win-win. Great for the cause (usually a charity or other not-for-profit organisation). And a win too for the brand concerned.

Cause-related marketing is a good example of one part of CSR (corporate social responsibility) in action. It is widely acknowledged that a successful campaign can have significant marketing benefits for the brand concerned. In a survey conducted by BITC in 2004, the research found that, for example,

• 88 per cent of all consumers were aware of a cause-related marketing programme.

• 80 per cent felt more loyal and more positive about companies that chose to work with charities in this way.

• Almost half (48 per cent) said they actually switched brands as a result of a cause-related marketing programme.

• 2 out of 3 consumers said want more businesses to run cause-related marketing programmes.

There are lots of examples of this form of CSR - click here for a good resource from the Breast Cancer Campaign which describes how it has worked with a variety of firms and brands. As the campaign reports:

Breast Cancer Campaign works with a diverse range of brands and companies helping them to reach new target markets, increase awareness, grow market share and launch new products while raising money for the charity.

Comic Relief 2011 might be a good introduction to some of the issues surrounding corporate social responsibility for students researching the AQA BUSS4 paper in June 2011. The corporate part of the Comic Relief site can be found by clicking here. As the site says:

“The benefits [for Comic Relief’s corporate partners] don’t just end with boosted sales and increased exposure from the fantastic marketing opportunities we offer your brand. Oh no. Being a partner will also make your employees proud that you want to make a difference, and they’ll have a great time fundraising for us too!”

...and here is that Walkers Crisps Comic Relief campaign launch…

Unit 4: CSR at the Movies - Supersize Me in 7 Minutes

This now infamous movie clip might be a useful lesson stimulus for colleagues and students examining the issue of rising adult and childhood obesity in the context of corporate social responsibility. The movie in question is Super Size Me, a documentary film directed by and starring Morgan Spurlock, an American independent filmmaker. Spurlock’s film follows a 30-day period from February 1 to March 2, 2003 during which he eats only McDonald’s food.


The film documents this lifestyle’s drastic effects on Spurlock’s physical and psychological well-being, and explores the fast food industry’s corporate influence, including how it may encourage poor nutritional habits in return for generating higher revenues and profits. The film makes pretty uncomfortable viewing and it may put you off fast food for a while!

Here’s how the experiment behind the film took place. Spurlock dined at McDonald’s restaurants three times per day, eating every item on the chain’s menu. He would always choose to “super-size” his meal if he was offered by a McDonald’s employee. Spurlock consumed an average of 5,000 kcal (the equivalent of 9.26 Big Macs) per day during the experiment. As a result, the then-32-year-old Spurlock gained 24½ lbs. (11.1 kg), a 13% body mass increase, a cholesterol level of 230, and experienced mood swings, sexual dysfunction, and fat accumulation to his liver. It took Spurlock fourteen months to lose the weight gained from his experiment. [source: wikipedia]

Here is the edited seven-minute excerpt of Morgan Spurlocks’ supersize-me experiment.