The Role of CSR in Corporate Reputation

5 minute read

The Role of CSR in Corporate Reputation

CSR stands for Corporate Social Responsibility. CSR is a term used to describe socially beneficial activities performed by businesses. Corporate Social Responsibility can take the form of philanthropy, activism, charitable giving, or volunteering. CSR Return on Investment (ROI) is often intangible, as is the case when tuning a CSR initiative to improve corporate online reputation.

A large number of companies include CSR as part of their brand building strategy. For example, Reputation X clients have asked whether making a donation to causes like BLM or the NAACP would benefit their brand perception. While donations to positive popular causes are almost always helpful, this type of one-off Corporate Social Responsibility is considered shallow and self-serving by some, and a necessary evil by others in an effort to avoid being publicly shamed by activists. 

Aggressive demand for ROI can make CSR seem like PR

Many companies insist (internally) that CSR initiatives show ROI. The issue with demanding ROI for Corporate Social Responsibility initiatives is that it can smell like astroturfing to some extent. Astroturfing is a fake grass-roots movement.

Companies, especially larger enterprises, are under pressure to both support charitable initiatives, and to appear to do so with humility and even understatement. Aggressive demand for ROI can make CSR seem like PR. 

But CSR ROI need not be so overt. For example, if the charitable organization itself generates positive content about the giving company, the originating business often gets a pass. More on this later

CSR and corporate reputation

At the risk of seeming cynical, even a relatively short blast of apparent social responsibility often helps to improve the sentiment of corporate online reputation. This is because trending topics are often rewarded by eyeballs and clicks. Eyeballs and clicks (and inbound links) are noticed by the Google algorithm. This can dramatically alter the search results of a company, thereby improving reputation - at least while the topic trends.  

Example: CSR as protection from hash-tagging

boycott starbucks hashtag example

CSR can form a shield against being "hash-tagged" negatively. For example, one of our clients asked if we should "check the box" to safeguard against online activists damaging their reputation online. Our client had been sent a template email by people purporting to be activists. Our client regarded the email as a thinly veiled threat that if they did not comply with a donation to their cause online retribution would follow. 

We suggested a strategy to maximize their social giving. While there was plenty of eye-rolling, the company ended up making strategic donations, posting content regarding their support on their various web properties, and earned praise of their actions. Ironically, the senders of the original "threatening" email never acknowledged their actions. Perhaps the lack of negative social media attention was thanks enough. 

While the reality is that it was a one-time donation and purely for protection, it helped the company while funding trending charities. To be sure, it wasn't a selfless act, but in the end it helped a lot of people. 

CSR and trending topics

The targets of corporate social responsibility often change with public attention. As powerful as Black Lives Matter is, the movement is still at the mercy of the news cycle. Most social causes have their day in the sun and then fade and gain stability at a lower level of visibility.

The chart below shows BLM Google search trends over time. 

blm-trend

Here is the Google Trends chart for the Me Too Movement.

metoo

CSR often moves with the economy

According to Nielsen, social responsibility, which was once a top concern for companies has faded in the harsh light of the pandemic. But charitable giving in the United States began to wane prior to Covid. During the Great Recession (2007-2009) charitable giving dropped by 7%. A similar or greater decline could happen due to the economic pullback of 2020 not only for individual giving, but for corporate social expenditures as well. 

Corporate social responsibility policies

CSR policies can take many forms. Below are a few examples of Corporate Social Responsibility activities many companies have undertaken.

  • Carbon footprint reduction
  • Fair trade practices
  • Giving to charitable causes
  • Development of scholarship funds
  • Employees volunteering in the community
  • Environmental and green practices
  • Social capitalism
  • Labor practice improvement
  • Service club involvement (Rotary, Elks, etc.)

Harness CSR to rebalance the narrative

A common issue Reputation X deals with are unbalanced narratives. An unbalanced narrative is when search results, social media, or Wikipedia articles portray an online narrative that skews toward the negative. One of the ways to rebalance online sentiment is to generate new positive online content. Corporate Social Responsibility can not only help communities, but generate content to support the rebalancing effort for the company doing it (it works for individuals as well). 

Using CSR to improve corporate reputation entails the following:

  1. Identify one or more charities or causes to help. Trending topics are usually the best choice.
  2. There are three asks a company could make of the organization it is helping:
    1. Ask that the recipient organization announce the gift or other support in all of their social media channels.
    2. Ask that the recipient organization write an article about the support to be placed on their website. It is important that the headline mention the name of the company (business doing the giving).
    3. Finally, ask that the recipient organization publish a press release about the gift or support. Note: All expenditures should be reimbursed promptly by the company. 
  3. Once the "three asks" have been made and the charitable organization has followed through, the corporation should support the organization in a similar manner. Giving doesn't just end at giving, help them online and help your brand too:
    1. Mention the charitable organization across all social channels using appropriate has tags for the cause and for the charitable organization.
    2. Distribute a press release about the event. Include images if possible.
    3. Optionally, place the organizations logo on the company website. This can be for a limited duration. 
    4. Make sure the companys Crunchbase, Medium, and LinkedIn and similar profiles all mention the charitable work by referring to content about the company developed by the charitable organization (point 2.2 above). 

These measures seem self-serving because... well, they sometimes are. But keep in mind that the company is not the only entity benefiting from CSR. The charity gets something, employees feel a sense of pride, the community around the organization will appreciate it too. The company providing support will have additional positive online content about their social responsibility.

ROI in CSR doesn't need to hobble the initiative, instead consider the intangible asset that is corporate reputation to be a benefactor as well. 


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