Sharing an excellent article by my friend Glorin Sebastian
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“BEING GOOD COMES AT A PRICE; WITH THAT PRICE WE BUY CONSUMER CONFIDENCE” –INDIRA NOOYI (CEO PEPSICO)
The PR firm Burson-Marsteller survey showed 75% of consumers rated social responsibility prime in their purchase decisions, and 70% say they are willing to pay a premium for products of a socially responsible company. A growing number of corporate feel that CSR is important for protecting the goodwill and reputation, defending attacks and increasing business competitiveness. It also is a method of brand building.
The Parliamentary Standing Committee on Finance, headed by the former Finance Minister, Mr Yashwant Sinha, had proposed that companies with a turnover of Rs 1,000 crore or net profit of Rs 5 crore or more should earmark two per cent of their net profit for the preceding three years on CSR, but without specifying what, in their view, would constitute CSR and how the funds allocated should be channelled.
SEBI has asked the country’s top 100 listed companies (by market capitalization) to report critical information to its shareholders as per SEBI circular. The companies should share details of pending cases filed by stakeholders against any unfair trade practice, irresponsible advertising or anti-competitive behaviour adopted by the company. Many leading companies including L&T, HUL, Tata Motors, ITC and ICICI Bank are already publishing a separate sustainability report along with their annual reports. Public sector enterprises (PSEs) are mandated by law to spend two per cent of their profits after tax on CSR.
One company that tries to combine its CSR and Business Model was PepsiCo. In 2009, PepsiCo rolled out compostable bags made from biodegradable plant material for one of its chip brands. (The bags were eventually scrapped because customers thought they were too noisy.). They also took to Nutrition and wellness industry by reducing the salt and sugar in their foods and beverages.
Another example of CSR is the work is being undertaken to rebuild the lives of the tsunami affected victims. This is exclusively undertaken by SAP India in partnership with Hope Foundation, an NGO that helps in improving lives of poor. The SAP Labs Center of HOPE in Bangalore was started by this venture which looks after the food, clothing, shelter and medical care of street children.
Classmate notebook 4 years back had its complete back page dedicated to its social cause of providing education to rural students. It affirmed that from the purchase of every single notebook Rs1 will be contributed towards education of rural education. Now after four years the area of back page used for this advertisement has reduced to a quarter and so has the contribution to education. It’s now ‘Rs 1 for every 4 notebooks sold’. Though this puts doubts on ITC’s intension; yet Classmate definitely has a higher preference among the buyers due to this.
E-Choupal is an ITC Limited initiative, to link directly with rural farmers via the Internet for procurement of agricultural and aquaculture products. It involves the installation of computers with Internet access in rural areas of India to offer farmers up-to-date marketing and agricultural information.
When you genuinely try to help the real customers and to market your Goodwill; your product definitely sells. The clichéd image of a greedy and self-conceited marketer is long out of fashion.
Gone are the days when making profits meant cheating on consumers. In the present market scenario; you can be good and help consumers prosper as well, without affecting your firm’s profits. Try to give maximum profits to the consumer by minimising the gains of middle men. Once the consumer gets satisfied; trust building ensues. And that is definitely a million dollar investment. And Goodness definitely sells.
So, be good! But also know how to sell your goodness.
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“BEING GOOD COMES AT A PRICE; WITH THAT PRICE WE BUY CONSUMER CONFIDENCE” –INDIRA NOOYI (CEO PEPSICO)
The PR firm Burson-Marsteller survey showed 75% of consumers rated social responsibility prime in their purchase decisions, and 70% say they are willing to pay a premium for products of a socially responsible company. A growing number of corporate feel that CSR is important for protecting the goodwill and reputation, defending attacks and increasing business competitiveness. It also is a method of brand building.
The Parliamentary Standing Committee on Finance, headed by the former Finance Minister, Mr Yashwant Sinha, had proposed that companies with a turnover of Rs 1,000 crore or net profit of Rs 5 crore or more should earmark two per cent of their net profit for the preceding three years on CSR, but without specifying what, in their view, would constitute CSR and how the funds allocated should be channelled.
SEBI has asked the country’s top 100 listed companies (by market capitalization) to report critical information to its shareholders as per SEBI circular. The companies should share details of pending cases filed by stakeholders against any unfair trade practice, irresponsible advertising or anti-competitive behaviour adopted by the company. Many leading companies including L&T, HUL, Tata Motors, ITC and ICICI Bank are already publishing a separate sustainability report along with their annual reports. Public sector enterprises (PSEs) are mandated by law to spend two per cent of their profits after tax on CSR.
One company that tries to combine its CSR and Business Model was PepsiCo. In 2009, PepsiCo rolled out compostable bags made from biodegradable plant material for one of its chip brands. (The bags were eventually scrapped because customers thought they were too noisy.). They also took to Nutrition and wellness industry by reducing the salt and sugar in their foods and beverages.
Another example of CSR is the work is being undertaken to rebuild the lives of the tsunami affected victims. This is exclusively undertaken by SAP India in partnership with Hope Foundation, an NGO that helps in improving lives of poor. The SAP Labs Center of HOPE in Bangalore was started by this venture which looks after the food, clothing, shelter and medical care of street children.
Classmate notebook 4 years back had its complete back page dedicated to its social cause of providing education to rural students. It affirmed that from the purchase of every single notebook Rs1 will be contributed towards education of rural education. Now after four years the area of back page used for this advertisement has reduced to a quarter and so has the contribution to education. It’s now ‘Rs 1 for every 4 notebooks sold’. Though this puts doubts on ITC’s intension; yet Classmate definitely has a higher preference among the buyers due to this.
E-Choupal is an ITC Limited initiative, to link directly with rural farmers via the Internet for procurement of agricultural and aquaculture products. It involves the installation of computers with Internet access in rural areas of India to offer farmers up-to-date marketing and agricultural information.
When you genuinely try to help the real customers and to market your Goodwill; your product definitely sells. The clichéd image of a greedy and self-conceited marketer is long out of fashion.
Gone are the days when making profits meant cheating on consumers. In the present market scenario; you can be good and help consumers prosper as well, without affecting your firm’s profits. Try to give maximum profits to the consumer by minimising the gains of middle men. Once the consumer gets satisfied; trust building ensues. And that is definitely a million dollar investment. And Goodness definitely sells.
So, be good! But also know how to sell your goodness.