Diversity in the workplace

Companies that are able to develop diversity programs can create a competitive advantage by capitalizing on human capital. According to the “Top 50 Companies for Diversity” list by Diversityinc, Verizon, Consolidated Edison CO. of NY, the Coca-Cola Co., Health Care Service Corp and HBO are the top 5 companies for Diversity (Diversityinc). Diversityinc developed their list by asking questions on diversity training, employee-resource groups, mentoring, and multicultural marketing. DiversityInc, researched women- and minority-owned businesses and assessed the CEO’s direct involvement in diversity initiatives. Most companies have developed diversity programs as a part of their overall CSR strategy. For example,

· CIGNA strives to create and support an environment that attracts and retains the most talented, ethical, well-trained, mutually supportive and diverse people. An ethnically and culturally diverse workforce mirrors our customer base, and is important to increasing profitability and building shareholder value in the company.

· At Dupont, More than half of DuPont's new hires for professional and management positions are minorities and women.

· Microsoft has programs in place to acquire talent from the African American community. Those programs include efforts with national organizations, historically black colleges & universities (HBCUs) and those with high African American enrollment, advertising in ethnic media and via Pathways, a newsletter targeted to professionals from diverse cultural backgrounds.

· At Walt Disney, fostering a best place to work environment, attracting top diverse applicants, having minorities and females well represented in key positions and providing more opportunities for flexibility in the workplace are part of the company's employment-related diversity initiatives.

How does your company promote diversity in the workplace?

CSR as a Competitive Advatage

Most companies compete on the basis of price or the level of quality or service as their source of competitive advantage. Could your business create an even better competitive advantage by building a positive CSR?

Today's consumer expects some level of CSR, but you could your business act on potential social, economic, or environmental advantages that can help your bottom line? Not only is CSR better for the community, but the business reaps the benefits as well. Depending on the form, your CSR involvement could build a better brand image, increase revenues through cause-related marketing, and create shareholder value. Going green can help to increase efficiency through environment conservation and recycling initiatives. Plus, having a positive CSR reputation can help you attract better employees, make it easier to get financial capital, and help maintain and attract consumers as they become more aware of your CSR efforts.

Has your company utilized this form of competitive advantage? If not, why? What do you think the drawbacks are?

Cause Related Marketing and Product RED

I recently read the article "Bono's Product (RED) Initiative: corporate social responsibility that solves the problems of 'distant others" and learned about one form of CSR, cause related marketing.

Here are some key points from that article:

• The Product (RED)TM initiative was launched by Bono at Davos in 2006. Product RED is ‘a brand created to raise awareness and money for The Global Fund to Fight AIDS, Tuberculosis and Malaria by teaming up with iconic brands to produce RED-branded products’.
• Consumers can help by shopping at American Express, Apple, Converse, Gap, Emporio Armani, Hallmark and Motorola, where a portion of the proceeds go to the Global Fund
• CSR has developed over the last few decades ranging from Corporate Philanthropy initiated by Andrew Carnegie and John Rockafeller who donated millions to charitable causes to focusing on issues during the 1960’s relating to labor practices and employee and product safety. After the emergence of sweatshops in the 1980’s and 90’s many corporations began to include Social Responsibility as a part of their overall strategic plans and codes of conducts.
• Recently, we have seen the emergence of cause-related marketing in which the marketing of a brand, company, product or service is tied directly to a social cause, most often with a proportion of the sales going to support the cause.
• The RED initiative was formally launched at the World Economic Forum in Davos in early 2006, with several other companies joining over the next few years. These companies offer a variety of products and services at a range of prices with proceeds donated to Product Red.
• Benefits of cause related marketing with Product Red range from increase of sales of Product RED items, to building a better brand image.

Cause related marketing is a form of marketing which partners a corporation with a non-profit for a mutual benefit relationship. There are several corporations and non-profits that have utilized cause related marketing such as Yoplait and Susan G. Komen, Mariott and March of Dimes, and of course the largest cause related marketing program Product Red with companies such as Motorola, Apple and the Gap. Cause related marketing is a unique form of CSR in that it allows the consumer to identify with the charity in which their purchase is helping to fund. Cause related marketing is a win-win situation in that the partnership between the companies helps to build a better brand image, increase sales and help the non-profit. When consumers are making purchase decisions they expect the corporations to do more than just make a profit, they expect them to improve the well being of others; whether it is in the local community or within the global environment. With the success of Product RED, it is likely that many more companies will try their hand at cause related marketing as a form of their Corporate Social Responsibility in the near future.

While doing some research, I came across this scholarly journal article. Why Green Companies Should Go Clear Instead written by Bennett, Andrew, and Greg Welch.

Here are the key points:

Key points:

• Too many companies claim to be “Green”, but what does it really mean?
• It’s more important for companies to be clear and transparent and open about their business impurities.
• Consumers want companies to contribute to society and do more than just exist to make a profit
• It’s important for more than 6 out of 10 Americans surveyed to buy from companies who have the same values.
• Clear companies of tomorrow will need open communication and constant collaboration.
• Potential changing the future of packaging, Wal-mart is developing a global index to rate and label products based on their social and environmental impact.

As many companies claim to have “green” products, it’s more important for companies to work towards becoming “clear.” Looking forward, “clear” companies of tomorrow will have well defined and communicated goals. Authors Bennett and Welch conclude that a recent survey found that 74% of consumers believe that corporations are just as responsible as the government in driving positive social change. Companies can achieve this by being “clear.”

It’s important for companies to have Corporate Social Responsibility as part of their mission statement and values. CSR can range from sustainability to community involvement to promoting diversity in the workplace. In a survey conducted by Penn, Schloen and Berland of over 1000 online consumers, 75% say that a company’s social responsibility is an important factor in determining which product to purchase. Wal-mart’s global index rating will help consumers determine which product best correlates with their own values and will create a unique opportunity for companies to differentiate themselves. Going forward, companies that are able to become clear instead of just green will have a competitive advantage over others.

Are U.S consumers willing to pay more for corporate responsibility?

In a recent survey of more than 1000 online consumers, Penn Scholen Berland asked consumers their opinions on how corporate social responsibility affects their purchasing decisons. Here are some key findings:

• 75% of consumers say that social responsibility is important when choosing a brand
• 55% of consumers say they would choose one product over another because it supports a certain cause
• Despite the recession 38% of consumers are willing to spend more on particular brands or services that are socially responsible
• 75% of consumers who read about a company's CSR through advertising or online information are more likely to purchase that product
• Fewer than 1/2 of consumers actually understand what CSR is
• Only 33% of people are aware of their employers environmental activities and only 24% are aware of their companies charitable activities
• Half of 18-24 year olds would be willing to take a pay cut to work at a more socially responsible firm

What have we learned from this survey? Most importantly, consumers are paying attention to social responsibility. This provides a unique opportunity for brands to differentiate themselves. Most consumers aren't likely to seek out the information on a company's website, so if CSR is important to your company, then advertise it!

Why CSR is so critical for brands.

It seems that consumers expect CSR to be a core focus in the culture of brands. CSR helps consumers align their personal values with that of the brands and give consumers reasons to purchase specific brands. CSR is critical for brands because it helps them to differentiate themselves among the shelves of products that are virtually identical.

If you know that a company donates part of its profits to the community or a nonprofit organization, are you more apt to purchase that product? If a brand markets that fact that they donate a portion of their sale to the Susan G. Komen Breast Cancer Research or Aids foundation does that make you want to purchase their product? Do the the compostable bags of Sunchips affect your purchasing decisions?

Very cool video - but the bags are so loud!

Do you buy specific products or shop at certain stores because of some aspect in their CSR?

Is CSR part of the Mission Statement?

An interesting questions came up during class discussion the other night. Is CSR part of the company's mission statement? Is that why some companies are more involved than others.

I started by further researching my own company. Yes, as I guessed giving back to the community is in Target's Mission Statement:

Our mission is to make Target the preferred shopping destination for our guests by delivering outstanding value, continuous innovation and an exceptional guest experience by consistently fulfilling our Expect More. Pay Less.^® brand promise.

To support our mission, we are guided by our commitments to great value, the community, diversity and the environment.

This made me wonder, is CSR part of other companies mission statements? First I investigated Wal-mart and discovered they don't have an official mission statement but I found this commonly used phrase: "to help people save money so they can live better." Looking into Wal-mart's CSR Report for 2009 I found that it is focused more on the sustainability of its company rather than community involvements. Wal-mart is focused more on providing low prices to low income families so they can live a better life.

Is CSR part of your company's mission statement? Can you think of any companies that greatly market the fact that they are involved in the community? Do you tend to buy their products more because of that fact?