Making the Most of CSR

Viewpoint by David Aaker, Vice Chairman

Most companies have a good heart.  They reach out in numerous ways to help communities and people in need.  However, in most cases the results are not visible and, worse, make little difference.  In my view, it is far better to have a branded, focused, engaging program that is linked to a firm’s expertise or customer base; has objectives that are meaningful and obtainable; leverages the firm’s resources; and represents a long-term commitment.

My favorite such effort is the Avon Foundation Breast Cancer Crusade with its companion Avon Walk for Breast Cancer.  It resonates with the Avon target market as nearly every customer has been touched somehow by the disease.  It is worthwhile--the objectives are to raise money and awareness for advancing access to care and finding a cure.   It is successful--raising more than $450 million in 50 countries over the last 15 years.  It is involving—there were over 3,500 participants in the New York walk in 2006, one of ten such walks in the country, and each participant had dozens of sponsors.  It leverages resources--Avon’s support budget was around $15 million and achieved an impact far greater.  It is branded--so much so in fact, that there is no chance that Avon will not be associated with the effort.  It has benefits—the Avon brand is now one noted for being caring, authentic, and healthy.

That being said, it is not easy to find the right vehicle to start down the corporate social responsibility path.  Four questions can help you get started:

1. What is your target market concerned about?  Think about the connection between Avon and their customers. 
2. Is there a way to get your customers involved in a program like Avon did with the walks? 
3. In what areas would it be natural for your company to be involved?  A bottled water company might be involved with water shortage, for example.  A natural link will make the connection between programs and the company easier to digest.
4. In what areas can your company provide credibly substantive assets and skills to a problem?  A computer firm could contribute to education.  An alternative energy firm could help meet energy needs in the Africa.  Expertise will make it more likely that the program will have impact and that the firm will have a continuing interest.