STRATEGIC CSRProfessor McElhaney

22 April 2009

CSR IN THE NEWS Dana? Ian?

Burt’s Bees Goes Dumpster Diving http://vcr.csrwire.com/node/14508

President Barak Obama Signs Historic Volunteerism Act into Law Edward M. Kennedy Serve America Act Increasing support for national service program like

AmeriCorps, VISTA and Senior Corps Includes a Volunteer Generation Fund to help build a

"truly inclusive and powerful volunteer service in this nation

President Obama will nominate Nike Inc. Vice President Maria Eitel to lead the country’s community service efforts.

Source: Economic Conditions Snapshot, March 2009: McKinsey Global Survey Results  

http://www.urbanecomap.org/

CSR IN THE NEWS

Got a Good Fit? http://news.yousendit.com/servlet/website/

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Mars, the world's biggest confectionery company, announced that its entire cocoa supply will be "produced in a sustainable manner" by 2020 Mars will work largely with the Rainforest

Alliance , which encourages farmers to preserve their environment

CSR IN THE NEWS L'Oreal Sets Green Goals and Promotes

an Eco-Responsible Business Model L’Oreal has established three significant long-

term environmental 2005-2015 targets for its factories and warehouses: Reduce greenhouse gas emissions 50% In 2005, the

total CO2 emissions were 230.3 thousands of tons.

Reduce water use per unit of finished product 50% In 2005, the water consumption was of 0.72 litre per finished product.

Reduce waste generated per unit of finished product 50% In 2005, the waste generated per unit of finished product was of 32.2 grams.

REAL-WORLD EXERCISE:WALMART CAUSE MARKETING

CAUSE MARKETING RESEARCH PROPOSAL

The Opportunity• Align with a cause/entity to channel philanthropy to areas that matter most to

mom; developing a deeper connection with her• Uphold ‘Live better’, increase positive associations, loyalty and spending while

improving brand reputation

Questions to Answer• Understand importance of cause marketing to our target

– What will impact mom and increase her loyalty and spending?• What charities/causes are most important to mom?

– Allow mom to give without writing her own check – where would she direct the money?– Break-out local, state, and national giving in terms of importance to mom– Importance of cash donations, in-kind, and volunteerism

• Ensure that we understand how the current economy is impacting her opinions on all above

• What is mom passionate about? What will deepen her connection with us?• Does mom want to be involved? Does she want to give via product purchases?

Does she want to donate at check out? • Would she like Walmart to match her (or associate) giving?• What’s the best way to message the giving?• Does mom want recognition for her giving? Quantify her impact?

Desired Outcome• Identify causes that resonate with mom, that inspire her and make her feel like part

of a bigger movement; thereby, increasing her loyalty to and spending at Walmart

WALMART’S OPPORTUNITY: FOCUSED GIVING

Current Giving: while generous, is unfocused; fragmentation results in difficulty aggregating and messaging to consumers (current giving via Foundation)

’08 US giving: $378MM in cash and in-kind Support >100K charities under the 4 pillars

4 pillars: Education, Workforce Development/Economic Opportunity, Health & Wellness, Environmental Sustainability

The Goal = Focused Giving: giving to one/few cause(s) that support business objectives and are integrated throughout company

Under one umbrella platform (e.g., Live Better House/Foundation)

Branding key signature programs (e.g., Walmart Live Better Scholarship)

Leverage core competencies (scale, Store of the Community positioning, etc)

Extensively communicate making it a part of the brand experience Track and measure impact (business and social)

Create and encourage employee engagement opportunities

Cause

Mark

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SUCCESS CRITERIA

Brand fit Ownable/unique Customers love it Associates love it Longevity Can change the world

(social/local impact)

Track and measure impact on Customer Loyalty Brand reputation Corporate image Awareness of Walmart’s

philanthropic/cause efforts Social environmental, local

impact Employee engagement,

enthusiasm, pride Media coverage

Metrics

Helping people live better is more than something we do, it’s who we are.

GO BRAINSTORM!

LET’S HELP STEFAN

MARKETING RECOMMENDATIONSPACT APPAREL

THE COMPANY

Direct-to-consumer sustainable clothing It all starts with underwear!

Hip, fashionable brand… environmentally and socially responsible

Online only sales model Each design is linked to a

non-profit organization that receives a portion of profits

Partnered with award-winning designer, Ives Behar

THE GOAL Recommendations for a real marketing campaign

utilizing social media tools

Building Brand Sustainable, socially responsible product Hip, fashionable styles Easy, direct-to-consumer online ordering

Driving Sales Always link to the website Create excitement, demand for the product

THE CONSTRAINTS Affordable

Free is preferred, but there is some money PR and Marketing firms working for equity

Easy Implementation and Maintenance Small staff, although possibly hiring social media guru

Accessible Encourage viral spreading

Targeted 18-35 Fashion-conscious and/or green-conscious

THE PRIMERS User driven content

YouTube video contest

Partnerships AT&T and Tom’s Shoes

Link online and offline marketing Twittering about free giveaways

Think about yourself What would make you or your friends buy this product?