Using CSR to grow brand affinity

All over the world, one of the ways of brand building is centred on building connections with society through Corporate Social Responsibility initiatives. Corporate Social Responsibility initiatives create brand affinity in the minds of the larger society.

It does not only have the concern of brand equity awareness among the larger society, but also leads to a positive brand image among potential consumers. An increasing majority of global private companies embrace corporate social responsibility, not only because it is the right thing to do, but also because it strengthens their brands.

Investigations show that a chunk of majority of consumers would switch to a brand associated with the good cause. A new concept of co-donation has been triggered by some major companies in which they are giving donations that involve consumers by letting them co-donate or co-decide what kind of social responsibilities will be carried out, as happened with Pepsi Refresh.

The percentage of brand value represented by corporate social responsibility is trending upward while all other identifiable contributors to corporate brand value, which includes advertising, market cap, and the industry in which a company competes appear to be declining.

Consumers increasingly expect global companies to make a broader contribution to society. Prior studies concluded that consumers’ purchase decisions are positively influenced by socially responsible initiatives implemented by companies. In a recent survey, 79% of consumers would switch to a brand associated with a good cause.

Speaking on this, Chief Executive Officer/Executive Creative Director of O seme Group, Isi Eromosele said; “co-donation and cause related marketing help promote competition, which in turn leads to corporate innovation. This is essential for developing sustainable products and promoting sustainable consumption around the world. For brands, it is an excellent way to show they care, taking the lead with innovative “give back” schemes.”

According to him, “in the past, Procter and Gamble teamed up with UNICEF to introduce Nutristar, a powdered drinking product that addressed micronutrient malnutrition in some populations and by acquiring the PuR brand to bring low-cost water purification technologies to consumers in developing markets. The company also promoted better hygiene in at-risk communities and in return had the benefit of forming new markets for its products like soap and toothpastes.”

He pointed out that; “exposure to any type of well-conceived promotional initiative for a brand leads to more positive feelings and judgments about the brand in a consumer’s mind. A promotional initiative emphasizing a brand’s affiliation with a social cause has a high degree of affinity. How much a given initiative will help or hurt a given brand will depend on the characteristics of its target markets.”

“A high degree of affinity can enhance the effectiveness of a brand’s promotional initiative that increases the likelihood of consumers treating the initiative as an important and positively weighted attribute of the brand. However, when a promotional initiative does not mention an affiliation, consumers may weight a brand’s style of marketing as a negative attribute. “he noted.

Further, he stated that, “consumers would weigh the style of marketing as positive with those types of affiliations that have alignment with a cause like cancer research, environmental protection or disaster relief. Moreover, a social-cause affiliation could also have a “halo effect” on how a brand is seen on other attributes, such as trustworthiness or quality. “

“Those initiatives in which the logic behind the brand’s affiliation can be easily recognized by most consumers typically produce a more positive effect on consumer brand judgments and feelings than initiatives with weaker fit. The management of socially responsible behavior is important because of its impact on the perception of the brand image. Enriching a brand with ethical and social questions increases its value. These associations influence the consumer in their assessment of its products and increased brand loyalty.” He added.

On his part, a brand management consultant, Bernard Okhakume told Daily Times that; “there are many companies with CSR programs but not all leverage or communicate them to help consumers understand their values. Reputation Institute does an annual survey of companies with the highest reputation scores for CSR initiatives. Google, Microsoft, The Walt Disney Company, BMW and Apple scored the highest in 2014. Not surprisingly these companies are some of the most successful in their market category.

According to the Reputation Institute’s website “Firms with better CSR reputation have a much higher ability to foster desired supportive behaviors among consumers, including buying their products, recommending their company, or trusting the company to do the right thing when faced with difficulties or disruptions.”

According to him, “there is an old (and maybe weird) saying that “the camel’s nose is in the tent”, meaning you cannot deny or turn this trend around. CSR is in the tent and is impacting how investors, consumers, activists, and communities respond to brands with not only with their wallets but with their employment choices, their influence, and their consumption and purchasing behaviors.”

Stressing the importance of communication in corporate social reasonability, he disclosed that; “successful CSR strategy is one that is shared, nurtured and communicated consistently to all stakeholders and shareholders. It is also important for companies to engage the services of experts when to handle their CSR activity for purpose of brand affinity”

He also said that, “companies that have made Corporate Social Responsibility a central part of their businesses are reaping the benefits, such as improved brand image. It works best for those companies in which social responsibility is a core company value and informs all aspects of the business.”

For him, Corporate Social Responsibility initiatives are not only about philanthropy but translating these ideas into practical business strategies. Corporate Social Responsibility driven efforts does not only relate to donating money but it talks about integrating social and ethical practices into business strategies that help the consumer in creating a positive brand image.

“With the increase in corporate social responsibility awareness, some companies promote a very elementary understanding of corporate governance and ethical standards. Another important aspect of corporate social responsibility is that it channels funds of socially responsible investors into promoting corporate social responsibility among investors.” He said.

Speaking further, he disclosed that, “corporate social responsibility initiatives are not only about philanthropy but translating these ideas into practical business strategies. Corporate Social Responsibility driven efforts does not only relate to donating money but it talks about integrating social and ethical practices into business strategies that help the consumer in creating a positive brand image.

With the increase in corporate social responsibility awareness, some companies promote a very elementary understanding of corporate governance and ethical standards. Another important aspect of corporate social responsibility is that it channels funds of socially responsible investors into promoting corporate social responsibility among investors.”

“The content of corporate social responsibility creates an emotional connection with consumers and builds connections between the brand, its corporate social responsibility initiatives and the viewers. Promoting brand image with the help of corporate social responsibility initiatives encourages positive comments and ultimately has a positive effect on the brand, because the company is being transparent about its external communications and internal practices which show alignment,” he added.