The Evolution of Corporate Social Responsibility

Keywords: corporate social responsibility, social activism, social responsibility, sustainability, brand management, ethics

Image by Scott Rodgerson from Unsplash

Corporate Social Responsibility

Having Corporate Social Responsibility (CSR) within an organization benefits a business in many ways and is essential for long-term success and sustainability. A CSR benefits the organization/business, the employees and the stakeholders.

Corporate Social Responsibility can focus on different responsibilities and initiatives, including environmental, ethical, economic and philanthropic through sustainability programs, employee engagement, partnerships, donations and sustainable sourcing.

The role of public relations within CSR overlaps. PR Superstar says, “CSR is a set of strategies that organizations use to contribute to the well-being of the community. While PR is how organizations tell the world about those strategies” (Kent, para. 8, 2019). Using public relations for CSR helps maintain honesty and transparency between employees and the public.

In this blog, there will be a discussion of real-world CSR cases that are crucial for professionals to analyze and learn from.

Social Activism

A top U.S. outdoor gear company, Patagonia, is admired for its outspoken social accountability and advocacy. In March of 2014, Patagonia premiered DamNation, a documentary that spotlighted the damming of rivers and watersheds in the United States. Derek Moscato says, “The DamNation campaign at once integrated an environmental cause into its retailing and product business model while at the same time challenging the government and industry both in the film and in media interviews and related publicity”. (Moscato, p. 3, 2016).

Patagonia has continually advocated for environmental and corporate responsibility, so much, that DamNation has become a turning point for Patagonia as the company transformed activist that is less central to the core business model – outdoor clothing and gear.  

This campaign was successful in the media due to the localization and true intentions. This campaign was not a social movement but more so CSR-as-activism that “leveraged the loyalty of its stakeholders and the beliefs of its founder and leadership into a genuine opportunity to shift public policy and enact important environmental change” (Moscato, p. 14, 2016). Patagonia has made its voice heard in the public sphere through strategic planning and public engagement.

Image by Casey Horner from Unsplash

Social Responsibility

In 2014, Consumer Value Stores (CVS) removed all tobacco-related products, which led to a risk. Discontinuing tobacco sales was part of CVS’s company value-aligned strategy. CVS wanted to promote a tobacco-free lifestyle. After the discontinuity, CVS began to communicate its social responsibility initiatives on social media through community involvement and cause support. Present on social media, CVS focused on promoting the “Be The First” campaign through #BeTheFirst, but was confused as the purpose was unclear. CVS even took a sports marketing approach, partnering with teams to raise awareness of a tobacco-free lifestyle.

The reasoning for eliminating tobacco in CVS stores was unclear to the public, but the company hoped this change would enhance the brand image and profit margins. The article states, “In addition, the effectiveness of the CVS social media campaign’s success was undetermined – an essential area of contemporary marketing strategy in today’s competitive environment” (Ward et al, p.7, 2016). CVS took action to position itself as a health care company and remained confident in its social responsibility.

Ethics Within CSR

In the early 1990s, Nike, Inc. began to receive negative publicity regarding its labor practices in both the United States and the United Kingdom, which lasted for two years. During that time, Nike released statements and press releases reassuring its commitment to the wellness of its employees and the improvement of factory conditions.

A few years later, a Nike employee leaked an internal report that exposed the truth of Nike’s working conditions. This began to raise questions as to whether the original statements made by Nike were just ‘advertisements’ or just ‘public statements that are protected by the First Amendment’.

This eventually led to Nike experiencing financial repercussions and facing the consequences of their unethical practices. In 1998, Phillip Knight announced Nike’s New Labor Initiatives that increased the minimum age of new employees, improved the air quality of factories, committed to open communication and responsibility issues and pledged to monitor the factories by NGOs. However, some issues were not addressed.

The internet quickly became an outlet for the public and Nike to communicate with the community. Nike addressed social issues and provided information about factory monitoring.

In 2001, Nike released a press release on the third anniversary of the New Labor Initiatives and discussing the successes and challenges. Yet, the same issues not been addressed earlier had still not been addressed. The article says, “A frequent complaint is that the company treats the labor problems as a public relations issue and not as a human rights issue in that it presents itself as a socially responsible corporation” (Nike_CSR, n.d.).

Nike’s accountability for the employee working conditions was lacking in many ways. They failed to address the problem, resulting in their failure to fix the problem. The lawsuit that was a result of the leak exposed Nike in a way that diminished their reputation for the time being.

Image by @victor_g from Unsplash

Sustainability

Capital One Financial Corporation, a Fortune 500 company, has taken the initiative to improve its CSR. “The company’s environmental initiatives engage people and the community, making it a trifecta of its CSR goals” (Smith, para. 6, 2019). Capital One associates support the company’s sustainability through efforts to receive environmental updates and engage in discussions via email and internal software.

The primary form of Capital One’s communication by the associates is used to promote, enhance and showcase the organization’s efforts to maintain environmental and sustainability CSR. Within the environmental goals, Capital One has three pillars:

• Operations: The method for keeping Capital One “green”.

• Products and Services: Makes environmental choices in materials (i.e., paper) by relying on technology for the main communication source.

• Associates and Communities: Involving in local communities through environmental events.

These three goals are communicated to both external and internal publics through word-of-mouth, social media, opt-in messages, etc. Capital One’s initiatives to promote sustainability have led them to receive awards, earned media, community engagement and much more.

In order to minimize its environmental impact, Capital One has sought to increase green power sources and apply new principles to buildings and renovations. The organization is also committed to the 3 "R” s (reduce, reuse, recycle), as this has led to a positive impact on the environment.

The biggest area where Capital One has increased sustainability is the products and services department. The “Paper Procurement Policy” was placed to retrieve paper from environmentally preferred sources. Capital One encourages customers to travel less for ATM transactions and use mobile deposit/banking options. In addition, Capital One is reliant on the internet as a channel of communication to employees, which allows them to share local opportunities to get involved. This encourages employees and associates to get involved and serve the community.

Capital One has a CSR program that supports sustainability and the environment both internally and externally. However, there is a lack of communication of these efforts to the public, decreasing their relevance. By communicating these efforts, the public will become aware and acknowledge the values and ethics of the organization. In the 2023 ESG Report from Capital One, “Capital One recognizes the wide-ranging impact climate change will have on the world and is committed to continuously improving the environmental sustainability of our business” (Environmental, social and governance 2023 report, p. 12, 2023).

References

Corporate social responsibility and ethics: Nike's labor practices under scrutiny. (n.d.). https://canvas.ou.edu/courses/417712/files/126553352?module_item_id=7954125

Environmental, social and governance 2023 report. (2023). https://ecm.capitalone.com/WCM/stories/pdfs/2023-capital-one-environmental-social-and-governance-report.pdf

Kent, J. (2024, August 7). What is Corporate Social Responsibility?. PR Superstar. https://prsuperstar.co.uk/what-is-corporate-social-responsibility/

Moscato, D. (2016). The Brand Behind the Activism: Patagonia’s DamNation Campaign and the Evolution of Corporate Social Responsibility. Case Studies in Strategic Communication Journal. https://canvas.ou.edu/courses/417712/files/126553350?module_item_id=7954122

Smith, S. A. (2019). Making plastic green: Capital One’s commitment to sustainability. https://canvas.ou.edu/courses/417712/files/126553310?module_item_id=7954124

Ward, C. B., Roy, D. P., & Edmondson, D. R. (2016). Is CVS Just ‘Blowing Smoke?’: Evaluating the CVS Decision to Ban Tobacco Products. Case Studies in Strategic Communication Journal. https://canvas.ou.edu/courses/417712/files/126553351?module_item_id=7954123