New Challenge of Corporate Social Responsibility

Yes, CSR has been an established “business model”. Remember what we mean by a business model? It refers to a broad outline of “how we make money”. Here you go! A corporate body is undertaking its “social responsibility” to make more money, more competitively, and in a more acceptable way to the society. Hey, I am a good citizen, and I am doing legitimate business to make a living, so buy my products. Is it just a make-over of the same profit-making monster or embrace of sainthood by an erstwhile buffoon?

It will be clear if you look at the impressive CSR activities of the world’s two leading consumer product companies, vis-à-vis the results of recent investigation by the European Commission. The authenticity of their CSR activities is necessarily in question. Read this, or this. Or, watch this video.

Let us face the new challenge of CSR. Prove that you mean it, and your CSR is “authentic” – emanating from your heart and soul. Unfortunately, it is not an easy job. Particularly, when you will be setting aside undisclosed amount of fund for paying fines to government, the same fund that has been generated from profit by selling stuff to us, consumers!

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About 1mmarketing

Working as Associate Professor, School of Business, United International University, Bangladesh; a North-American graduate, with doctoral studies from UUM, Malaysia; cherishing a wide-view of the world, with multiple interests in culture, people, traveling, and specifically marketing science. I have a colorful and diversified background with a blend of corporate experience, research, consulting, training, public speaking and teaching. I love to write about marketing issues that affect our lives, and talk about its direction that would promote the greatest human welfare.
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3 Responses to New Challenge of Corporate Social Responsibility

  1. Mamun says:

    Excellent writing. However, most of the country’s gov give tax rebate on CSR program budget. Therefore it has two significant, one is tax rebate another one is publicity. Result is good marketing and branding the products.

    • Mihir.G. says:

      Are we not missing the main objective “contributing to society” (or possibly it does not include in the term significant!!)

  2. Mihir.G. says:

    I do agree on the saying –“Prove that you mean it, and your CSR is “authentic””. But the problem is CSR activities are heartfelt things and the financial evaluations of the CSR outcomes along with the spillover effects are difficult to measure. The key word that defines the problem and also provides the solution to the problem is “motivation”. Keeping the motivation agenda in mind CSR has evolved with time. CSR at present is not any more just an annually allocated cost in the financial statements. The new buzz is “Inclusive Business” which refers to profitable core business activity that also tangibly expands opportunities for the poor and disadvantaged in developing countries. Such business models can engage the poor as employees, suppliers, distributors or consumers and expand their economic opportunities in a wide variety of ways. The summary is that forcing corporation to do CSR will never produce the fruitful result instead, more concentration should be given on how to create win-win situation, enhance innovation and to have partnership brokering.
    (RSP project of Care Bangladesh is a good example of inclusive business and partnership brokering in Bangladesh)

    Mihir.G.

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