How Corporations Communicate Social Responsibility

Abstract

This paper makes an attempt to explore the approaches and dimensions of communicating corporate social responsibility amongst different corporations. Message content, Message channel and external and internal factors are the major considerations in communicating CSR. Although, research indicates that many organizations avoid the provision of excruciating details within their CSR message content, there is evidence suggesting that CSR message content which incorporates elements of “commitment”, impact” and “fit” are better received. While selecting the message channel, organizations should consider the intended audience of the communication. Furthermore, there is an apparent tradeoff between the controllability and credibility of message channels. In addition, as compared to advocacy advertising, cause promotion is met with lesser skepticism from the side of the customers. Organizations that already enjoy a good reputation and derive their competitive advantage from their CSR activities are likely to witness amplified returns from their CSR activities as compared to organizations that have a poor reputation and do not enjoy any competitive advantage from their CSR activities. Moreover, the CSR communication process is greatly impacted by the choice of the CSR strategy by the organization. The three different CSR communication strategies are, namely, the stakeholder information strategy, the stakeholder response strategy and the stakeholder involvement strategy.

Table of Contents

ABSTRACTII

INTRODUCTION1

DISCUSSION2

Message Content3

CSR Commitment3

CSR Impact5

CSR Fit5

Message Channels6

External and Internal Factors9

Company Reputation9

CSR Positioning9

CSR Communication Strategy10

CONCLUSION12

REFERENCES13

How Corporations Communicate Social Responsibility

Introduction

In the year 1970, Milton Friedman published a widely discussed and debated article in the New York Times Magazine arguing that the social responsibility of any business is to generate profits and maximize the returns for its shareholders. In other words, organizations have no social responsibility whatsoever. Furthermore, engaging in CSR activities, without explicit permission from the shareholders, is not only unethical but it is also detrimental to the financial health of corporations and the economic well being of the society in the long term. Even today, some experts and academicians strongly promote the above-mentioned view and remain skeptic about corporate social responsibility. However, over the past few decades, a consensus has been building amongst business leaders, corporate thinkers, experts and academicians that corporate social responsibility is imperative for both business success and survival. Regardless of the fact that corporations are engaging in CSR activities, in good faith, or in an attempt to avoid bad press and public scrutiny and to divert the attention of critics from questionable activities of those corporations, many corporations are spending a significant percentage of their financial, human and other resources in social responsibility ventures (Coombs & Holladay, 2011).

Dawkins (2004) points out the fact that some corporations share a traditional and fading view amongst corporations, which choose not to publicize their CSR activities, that doing the same would lead to them being accused of “green-washing”, which is defined as intentional and deliberate exploitation of CSR activities for financial gain of the organization. However, there is substantial evidence, which highlights that CSR communication can create a multiplier effect of benefits for the organization. Furthermore, more and more stakeholders of the organization are ...