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Marketing*Strategy*!
Effect!of!Corporate!Characteristic!on!the!
choice!of!CSR!
Ayush!Parekh!
* *
! 2!
Index!
!
Sr.!No.! ! ! Topic! Page!No.!
1.! Introduction! 3!
2.! Importance!of!CSR! 5!
3.! Need!for!CSR!! 7!
4.! CSR!towards!Employees!! 9!
5.! CSR!towards!Consumers! 11!
6.! Types!of!CSR!! 13!
7.! Characteristics!of!Corporation!! 15!
8.! Ways!to!do!CSR!and!their!Examples! 16!
9.! Characteristics!of!Corporation!affecting!CSR! 16!
10.! Conclusion! 27!
! 3!
Introduction
The practice of CSR or Corporate Social Responsibility
as a paradigm for firms and businesses to follow has
evolved from its early days as a slogan that was
considered trendy by some firms following it to the
present day realities of the 21st century where it is no
longer just fashionable but a business requirement to be
socially responsible.
This evolution has been necessitated both due to the
myriad problems that we as a race face which has
changed the environment under which firms operate as
well as a realization among business leaders that profits
as the sole reason or raison d’être for existence can no
longer hold good.
The reason why companies must look beyond profits is
also due to the peculiar situation that humanity finds
itself in the second decade of the 21st century. Given the
political, economic, social and environmental crises that
humans as a race are confronting, corporations have a
role to play since they contribute the most to the
economic well being of humanity and in turn influence
the political and social trends.
Corporate Social Responsibility or CSR makes for
eminent business sense as well when one considers the
knock-on effect that social and environmental
responsibility brings to the businesses. For instance,
corporations exist in a symbiotic relationship with their
environments (the term environment refers to all the
components of the external environment and not to
ecological environment alone) where their exchange with
the larger environment determines to a large extent how
well they do in their profit seeking endeavors.
! 4!
The evolution of CSR as a concept dates back to the
1950’s when the first stirrings of social conscience
among management practitioners and theorists were
felt. The writings of Keith Davis starting in the 1950’s
and continuing into the 1970’s speak of the need for
businesses to engage in socially responsible behavior and
to ensure that society as a whole does not lose out in the
process of profit making behavior by businesses. CSR as
a concept was starting to be taken seriously by the time
the 1970’s dawned and through the tumultuous decade
when big business and their minions were accused of
several misdemeanors pertaining to rampant disregard
for the environment and society as a whole.
One can trace the anxieties of activists and management
theorists during this time as they feared that the
rapacious behavior of businesses and corporations ought
to be checked if a semblance of social responsibility was
to be maintained. Of course, both sides started to stick to
their positions and this resulted in the debate over CSR
getting shriller during the 1980’s. I conclude the article
with two quotes that illustrate the need to think beyond
the ordinary and at the same time remind ourselves of the
responsibility we have towards succeeding generations:
The first one by Albert Einstein where he said that
“problems cannot be solved from the same level of
consciousness that created them” and the second one
which says that “We have not inherited the Earth. We
have merely borrowed it from our children.”
! 5!
Importance of CSR
The term corporate social responsibility gives a
chance to all the employees of an organization to
contribute towards the society, environment, country
and so on. We all live for ourselves but trust me living
for others and doing something for them is a different
feeling altogether. Bringing a smile to people’s life just
because your organization has pledged to educate the
poor children of a particular village not only gives a
sense of inner satisfaction but also pride and
contentment. One should never forget the importance of
society and environment in our lives. It is indeed high
time when we also start thinking about people around us
who are less privileged and fortunate than us. Corporate
social responsibility gives an opportunity to
organizations to work towards the betterment of the
society and make it a better place to live.
Corporate social responsibility goes a long way in
creating a positive word of mouth for the
organization on the whole. Doing something for your
society, stake holders, customers would not only take
your business to a higher level but also ensure long term
growth and success. Corporate social responsibility plays
a crucial role in making your brand popular not only
among your competitors but also media, other
organizations and most importantly people who are your
direct customers. People develop a positive feeling for a
brand which takes the initiative of educating poor
children, planting more trees for a greener environment,
bringing electricity to a village, providing employment to
people and so on. You really do not have to invest much
in corporate social responsibility activities. Do not
! 6!
undertake CSR activities only to gain publicity but
because you believe in the cause. There are many
organizations which tap remote villages, some of which
are even unheard as an initiative of corporate social
responsibility.
Corporate social responsibility also gives employees a
feeling of unparalleled happiness. Believe me,
employees take pride in educating poor people or
children who cannot afford to go to regular schools
and receive formal education. CSR activities
strengthen the bond among employees. People develop a
habit of working together as a single unit to help others.
Infact they start enjoying work together and also become
good friends in due course of time. They also develop a
sense of loyalty and attachment towards their
organization, which is at least thinking for the society.
Who does not like to work with an organization where
management is kind enough to take out time for the
society and contribute in their own small way? Ask
yourselves, when is the last time you did something for
your society, customers, stake holders or environment?
Corporate social responsibility also goes a long way in
building a positive image of the brand. Trust me, your
brand becomes a “common man’s brand”. People start
believing in the brand and nothing can help you more
than your customers trusting you and your brand.
Positive word of mouth eventually helps to generate
more revenues for the organization.
In today’s scenario of cut throat competition, everyone is
so occupied in chasing targets and handling the pressure
at workplace that we actually forget that there is a world
around us as well. Have you ever thought about those
who can’t even afford proper meal twice a day? If you
! 7!
can take some time out of your busy schedule, please try
to visit a village once. You would be surprised to see
how people manage their lives there. Corporate social
responsibility in a way also plays a crucial role in the
progress of the society, which would at the end of the
day benefit us only.
Need for CSR
Corporate Social Responsibility or CSR makes for
eminent business sense as well when one considers the
knock-on effect that social and environmental
responsibility brings to the businesses. For instance,
corporations exist in a symbiotic relationship with their
environments (the term environment refers to all the
components of the external environment and not to
ecological environment alone) where their exchange with
the larger environment determines to a large extent how
well they do in their profit seeking endeavours.
When one considers the fact that the RBV or the
Resource Based View of the firm is all about how well
the firm exists in harmony with its external environment
and how this exchange of inputs and outputs with the
environment determines the quality of its operations, it
can be inferred that socially responsible business
practices are indeed in the interest of the firm and the
argument against imposing hidden social taxes on the
firms by undertaking socially responsible business
practices might not hold good in the current business
landscape.
Indeed, the world since the days of Friedman has
changed so much that socially responsible business
practices ought to be the norm rather the exception and
! 8!
the various readings surveyed for this paper do seem to
indicate that it is high time for businesses to engage in
responsible behaviour.
However, there is a tendency to treat CSR as yet another
cost of business and hence be business like about the
practice. So, mainstreaming the idea might not bring the
desirable effect unless the media, the businesses, and the
citizens themselves understand what is at stake and
behave accordingly. Paying lip service or corporatizing
the idea of CSR might not be the intended outcome of
the proponents and the advocacy groups that promote
this idea. Rather, a change in the mindset and attitude is
what these groups have in mind when they push for
socially responsible practices. It has been mentioned
elsewhere that CSR as a concept and as a paradigm ought
to be woven into the DNA of the corporations and when
the very fabric resonates with the threads of social
responsibility; the goals of conscious capitalism and
compassionate corporations would be realized.
Hence, a cautionary finger wagging is due for those who
believe that since the concept of CSR has been
mainstreamed, they can relax in the knowledge that
corporations would do the rest. Given the history of
profit seeking and mercantilist behaviour where fads and
ideas come and go but the very nature of the corporations
mutates rather than undergoes a fundamental change, we
still have some distance to cover before the goals of the
idea of CSR are achieved. Further, we should not end up
in a situation where the imperatives of the 21st century
force corporations to change their behaviour. Instead, a
voluntary mindset change is something that is better
suited given the vast resources that corporations have and
! 9!
which they deploy to resist change and thwart those that
push for legislation that aims to do so.
CSR towards Employees
What is an organization without its employees? Nothing.
Employees are said to be the true assets of an
organization. Even the best of technology or best of
infrastructure would not be of much use if employees do
not perform up to the mark and are not satisfied with
their current profiles.
As they say, “charity always begins at home”. The first
and the foremost responsibility of an organization
towards its employees is to ensure that they are happy
and satisfied with their jobs. It is unethical to treat
employees as mere machines and expect them to work
continuously for eight to nine hours at a stretch just
because they are being paid. Do not treat your staff as
labours. Management needs to ensure that individuals
associated with their organization are actually enjoying
what they are doing and also growing with time. Job
profiles ought to be delegated equally as per expertise,
knowledge and educational qualification of individuals
so that no one is overburdened. Provide healthy working
conditions to your employees. Assign proper
workstations or cubicles for them to work comfortably
and eventually deliver their level best. Everyone needs
some amount of privacy and make sure your employees
get the same; else soon they would be frustrated with
their job and look for better opportunities.
Sit with your employees from time to time and try to find
out whether they are happy with their job or not and if at
all they are facing any problems in the system? It is the
! 10!
responsibility of the management to look after the safety
of its employees. Ensure your office building is resistant
to fire and earthquake. You can’t play with the lives of so
many individuals. Till the time an employee is on official
duty, it becomes the responsibility of the organization to
assist him/her in case of a medical emergency or other
serious concern. If one of your engineers gets hurt at
your site, it is your responsibility to immediately take
him to the hospital and provide basic medical assistance.
Crisis can come anytime. If an employee asks for some
advance from his/her salary, please do not say a blunt
NO. Analyse the whole situation and find out how
serious the whole issue is? He/she might need some
money to treat his/her ailing father. It would be really
inhuman to deny help during such circumstances. I don’t
think there should be much of a problem in this; after all,
he is asking money from his own salary only. God
forbid, if any of your employees dies, make sure you
extend your sympathies and support to his/her family
members to cope up with such an irreparable loss.
Whenever your employees need your help, make sure
you are there with them. A feeling of loyalty towards the
organization comes only when the management treats all
its employees as part of one big family and takes good
care of them.
Stand by each other not only during happy times but also
sad moments. Remember; the fun is to enjoy not only the
happiness but the challenges together.
Encourage employees to praise and appreciate each
other. Give them ample opportunities to show their
talent. Provide them an environment where they can
hone their skills with time. Problems arise when
management puts a full stop on the growth of employees.
! 11!
Ask them to interchange roles, so that everyone gets to
work on something new. Timely appraisals are
important. It is the responsibility of the management to
ensure that employees who are working really hard and
showing progress are suitably rewarded. Incentives, cash
prizes, bonuses go a long way in not only motivating the
employees but also creating a healthy and positive
ambience at the workplace.
CSR towards Customers
Treat your customers as kings and do not think of
them only when you have a pressure to meet your
targets within the stipulated time frame. There are
organizations that do not bother to touch base with their
customers the whole month but are active only when
they fall short of their targets and they have an appraisal
in the coming month. Understand that a customer buys
your products or services only when he/she trusts your
brand and most importantly believes in you. Understand
the needs and requirements of your clients. Find out as to
why they need a particular product and how your product
would benefit them. You need to build a strong
relationship with your customers for them not only to
remain your loyal clients but also bring more people
along with them. It is the responsibility of the
organization to give correct suggestions and feedbacks to
customers. Avoid making fake promises and
commitments which you yourself know are difficult to
fulfil. What is the need of selling a mobile phone with
just one day battery backup when the customer has
specifically asked you for a handset with at least 3 days
backup?
! 12!
Never lie to your customers. It is foolish to cook false
stories. Trust me, you will be caught. In today’s world,
where information is just a click away, everyone does
his/her thorough research before purchasing something.
Unnecessarily you will lose your respect in front of them.
If you can’t deliver something, please mention it clearly.
They might not invest in that particular product but
believe me, would definitely come back to you in near
future just because you were honest and guided them
correctly. It is pointless to badmouth your competitors.
Businesses dealing with customer’s money need to be
extra careful with clients. Make sure their money is
invested in a right way and also multiples at a rate
promised to them. Do not run away with their money. It
is one of the worst things you can do to your customers.
It is your responsibility to take care of their hard earned
money. Suggest them the right schemes and right plans
as per their need. Do not just think of your own selfish
targets and incentives. This way, you will definitely meet
your targets once or twice but trust me not for a very
long time. The moment, the customer knows that you
have cheated on him/her; your game is over. He would
neither come to you again nor recommend your brand to
his friends or acquaintances.
Respect your customer’s time. Do not decide the time
and venue as per your availability and comfort. If the
customer wants to meet you at 5 in the evening, make
sure you are there on time. Neither reach too early nor
too late. Do not keep your customers waiting. Do not
forget that there are several options available in the
market. Your loss is someone else’s gain.
Organizations tend to forget their customers once the
deal is done. After sales service is essential and
! 13!
ensures long term growth and profits for the
organization. Make sure you are in touch with your
customers after the deal as well if you wish to survive the
cut throat competition. Do not ignore their calls once you
have sold your product. If the customer is not satisfied
with your product, it is your responsibility to replace it or
provide a solution. Customer feedbacks are important
and help you understand the satisfaction level of your
esteemed customers and how you can make your product
better in due course of time.
Types of Corporate Social Responsibility
CSR can encompass a wide variety of tactics, from
giving nonprofit organizations a portion of a company's
proceeds, to giving away a product or service to a worthy
recipient for every sale made. Here are a few of the broad
categories of social responsibility that businesses are
practicing:
Environment: One primary focus of corporate social
responsibility is the environment. Businesses, both large
and small, have a large carbon footprint. Any steps they
can take to reduce those footprints are considered both
good for the company and society as a whole.
Philanthropy: Businesses also practice social
responsibility by donating to national and local charities.
Whether it involves giving money or time, businesses
have a lot of resources that can benefit charities and local
community programs.
! 14!
Ethical labor practices: By treating employees fairly
and ethically, companies can also demonstrate their
corporate social responsibility. This is especially true of
businesses that operate in international locations with
labor laws of other countries not very strong.
! 15!
Characteristics of Corporation
• Ease of formation: It should be easy to form the organization.
The formation should not involve many legal formalities
and it should not be time consuming.
• Adequacy of Capital: The form of organization should
facilitate the raising of the required amount of capital at a
reasonable cost. If the enterprise requires a large amount of
capital, the preconditions for attracting capital from the
public are a) safety of investment b) fair return on
investment and c) transferability of the holding.
• Limit of Liability: A business enterprise may be organized on
the basis of either limited or unlimited liability. From the
point of view of risk, limited liability is preferable. It
means that the liability of the owner as regards the debts of
the business is limited only to the amount of capital agreed
to be contributed by him.
• Direct relationship between Ownership, Control and
Management: The responsibility for management must be
in the hands of the owners of the firm. If the owners have
no control on the management, the firm may not be
managed efficiently.
• Continuity and Stability: Stability is essential for any
business concern. Uninterrupted existence enables the
entrepreneur to formulate long-term plans for the
development of the business concern.
• Flexibility of Operations: another ideal characteristic of a
good form of organization is flexibility of operations.
Changes may take place either in market conditions or the
states’ policy toward industry or in the conditions of supply
of various factors of production. The nature of organization
should be such as to be able to adjust itself to the changes
without much difficulty.
! 16!
Different ways to do CSR with examples
&
How different characteristics of
Corporation affect their CSR Activities
In the following 25 ways to do CSR along with their
examples, we understand how characteristics of
corporation drive their CSR activities. Traits of a
corporation is also reflected in the CSR activities they
perform.
1. Fund staff for voluntary work
The 11-strong hotel group Red Carnation is in the early
stages of introducing volunteer days, which allow staff to
take two extra paid days off each year to work as a
volunteer. Staff are encouraged to work for one of the
charities that the group supports, such as
Starlight Children's Foundation or the Great Ormond
Street Hospital Tick Tock Club, but they can request that
another charity be considered. One of the first candidates
has just completed a day at Action Against Hunger.
Food service company Sodexo allows staff to volunteer
for work with its main charity partner, FareShare, which
has a five-year goal of helping 100,000 people by
providing more than 30 million meals, using 20,000
tonnes of redistributed food every year. To date, Sodexo
employees have provided 700 hours of volunteer support,
including members of the executive team, who spent a
couple of days at FareShare's Bermondsey food depot
earlier this year.
! 17!
2. Support fresh water schemes
In a bid to support a charitable supplier, Aramark
generates sales for the OneWater brand through its
contracts. OneWater puts all its profits into buying water
pumps to create clear water systems in Africa.
Elsewhere, Imago, the hotel and conference arm of
Loughborough University, is Fairtrade-accredited and
donates 5p from every bottle of water sold to help fund a
rainwater harvesting scheme in a small village in India.
3. Pass on your technology
Contract caterer BaxterStorey donates its old PCs to
Computer Aid International. This charity refurbishes
computers and provides them at a low cost to schools in
the developing world, to charities and so on. The knock-
on effect is that it reduces potential waste.
4. Look after employee health
The consequences of ensuring that your staff eat well and
live healthily are obvious in both business and CSR
terms.
Aramark's Business Action on Health team is part of a
Business in the Community (BITC) campaign. This
campaign highlights the business benefits of better health
at work, and is trying to make reporting on workplace
health issues commonplace in UK boardrooms.
It was also part of the subgroup developing the healthy
eating toolkit, which has been distributed to all FTSE100
companies.
5. Encourage guests to raise funds
Many hospitality companies do this as a matter of course.
Red Carnation hotels, for instance, has for some years
! 18!
been asking guests to make a contribution of £1 per stay.
The company then matches the donation and has so far
raised £38,000 for the Great Ormond Street Hospital
Tick Tock Club and more than £250,000 for the Starlight
Children's Foundation.
6. Campaign sponsorship
Many events and campaigns could not happen without
industry support. For instance, Aramark is one of the
sponsors of British Food Fortnight, one the largest
volunteer movements educating children about food.
Besides encouraging schools to invite chefs into
classrooms to teach children how to cook, it celebrates
British food through a range of promotions in pubs and
restaurants.
7. Set up a charity
Company charities provide a structured and tax-efficient
way to support local communities and charitable causes.
Sodexo's registered charity, the Sodexo Foundation,
launched the UK-based STOP Hunger campaign to
combat poor nutrition in local communities. It does this
by teaching basic nutritional cooking skills. Sodexo
covers the administrative costs and staff raise the funds.
So far, they have raised upwards of £250,000 since the
campaign's launch in 2005, by being sponsored to jump
out of aeroplanes or run marathons. They also help to
feed people in disadvantaged communities through
breakfast clubs for vulnerable children or by providing
food for the homeless.
Further, the BaxterStorey Foundation became a
registered charity in July. The company supports four
causes each year, including industry charity Hospitality
! 19!
Action, plus issues close to its employees' hearts, such as
local charities, sponsorship of sports teams, supporting
individual talent, and worldwide causes.
Funds are generated through initiatives such as the
London-to-Brighton bike ride, the Three Peaks
Challenge, and in 2009 a BaxterStorey team will be
undertaking a London-to-Paris bike ride. BaxterStorey
has also recently launched a "Penny-per-cup" scheme
with sustainable coffee company First Choice Coffee.
During the first year, the scheme is expected to generate
£70,000 for the charity.
Deputy chief executive William Baxter says: "As an
employer of nearly 5,000 people, we want to make sure
that we're not only supporting the big charities but also
offering a helping a hand to lesser-known programmes
and initiatives that are close to the heart of our
employees."
Catering supplier Apetito has set up a staff foundation,
which isn't a charity but which does champion the
charitable and voluntary work carried out by its staff and
their children, raising £50,000 in community donations
since it began in 2007. The foundation has recently
donated £500 to aid the work of African Joy, which
collects second-hand goods to recycle and send to
African schools and hospitals.
8. Recycle office supplies
BaxterStorey ensures that 100% of all disposable cups
and packaging used by the business are made from
recycled, recyclable or biodegradable materials. All
waste paper is recycled and, at the end of 2006, the
company changed from purchasing virgin paper to 100%
recycled paper, thus saving 2.4 tonnes of CO2 in 2007.
! 20!
Staff are encouraged to print office paperwork on both
sides of a sheet of paper and to recycle afterwards.
BaxterStorey has also created printing hubs at its head
office in Reading, reducing the number of printers it uses
by 50% despite office staffing having grown by 130%.
9. Support a conservation scheme
The Langdale Hotel and Timeshare Complex in the Lake
District helped to found the Tourism & Conservation
Partnership (www.ourstolookafter.co.uk), a visitor pay-
back scheme.
Langdale's guests have raised nearly £145,000 through
an option to donate when paying their bill. The North
West Regional Development Agency matches the
donations made by guests, and the hotel also makes
regular donations.
Since being established 14 years ago, the partnership has
raised £1m.
10. Cycle to work
Giving staff incentives to leave their cars at home is
proving popular among hospitality operators and
suppliers.
As part of Foster Refrigerator's Green Week, staff were
encouraged to cycle or walk to work, or to car-share.
Those who did were entered into a prize draw to win
store vouchers and eco-friendly products, such as an eco
kettle. Since the launch of Green Week last year, 40% of
Foster's staff have now chosen to walk or cycle to work
regularly.
Food service company Brookwood Partnership is
providing cycle vouchers and bicycle locks through a
link with Faircare, which runs government-funded
! 21!
initiatives to help employees buy bikes and equipment.
This scheme falls under the 1999 Finance Act for Tax
Exemption and the Government Green Transport Plan.
Employees save as much as 50% on retail prices through
a salary-sacrifice scheme, whereby an amount is
deducted each month from their gross pay, which
generates tax and NI savings for the employee and
employer.
Brookwood allows the employees to benefit from the
employer savings also. This scheme is being relaunched,
however, as initial take-up wasn't as high as was hoped.
11. Cut delivery miles
In 2007, Sodexo swept away 360,000 road miles by
working with supplier Brakes to reduce deliveries to
sites.
The company imposed a minimum order requirement to
discourage "little and often" deliveries, complemented by
the use of software to plan routes more effectively. It
represents a reduction of 400 tonnes of CO2 compared
with the previous year. Purchasing in bulk can reduce the
number of containers used.
12. Work with local producers
Increasingly, large-scale purchasers in the food service
industry recognise that they can play a big part in helping
to maintain our countryside by supporting local farming
communities, seeking products from sustainable sources
and looking to reduce environmental impact.
Sodexo Healthcare, for instance, has worked with NHS
Shetland since 1992 and, as one of the largest employers
on the Shetland Islands, sources as much as possible
locally, buying from the local baker, fishmonger and
! 22!
dairy. In its Scottish Government contracts, 52% of meat
sourced by Sodexo is Scottish.
BaxterStorey sources all fresh produce from producers in
the UK that are part of accreditation schemes such as
Red Tractor, Welsh Lamb and Lion brand, and is
developing its policy for sourcing fish that meet the
Marine Stewardship Council (MSC) requirements (see
number 17, below).
13. Spread the word in schools
The Year of Food and Farming is a business-led
campaign endorsed by the Department for Environmental
and Rural Affairs (Defra). It aims to help children to find
out more about the countryside and where their food
comes from, through visits to farms, cookery workshops
in schools and other first-hand experiences.
Representing the hospitality industry, Harvester pubs and
Toby Grill (both brands belonging to Mitchells and
Butlers) and Sodexo provide sponsorship. Sodexo runs
cookery workshops at about 500 primary and
independent preparatory schools across the country,
reaching as many as 9,000 children.
Programme director Tony Cooke says: "There is
irrefutable evidence that experiences such as making
bread have a profoundly positive effect on children's
relationship with food."
14. Help people with disabilities
A team from the Radisson SAS hotel in Edinburgh has
been working with Enable Scotland, a charity that helps
people with learning disabilities. In a recent project, staff
from the hotel have been working alongside young men
! 23!
to help them find stable jobs. One initiative has been to
help them plant trees from seed in Edinburgh's
Craigmillar Castle Park.
15. Set your staff a challenge
Many companies support their staff in fundraising
activities.
For instance, a team of 20 Aramark employees recently
did the Five Peaks Challenge to raise money for
Childline and Macmillan nurses. This meant climbing the
five highest mountains in Scotland, England, Wales,
Northern Ireland and the Irish Republic within 48 hours.
Aramark raised £41,500 from the peak challenge and a
race day which took place around the same time.
16. Share your swimming pool
The Langdale Estate in the Lake District has shown its
commitment to the local school by providing private use
of its pool every Thursday during term-time for
swimming lessons.
17. Tap into eco-friendly workers
Stowe Mountain Lodge, a new US$400m ski resort in
Vermont, USA, has employed eco-friendly artisans to
build furniture and design features. The artisans use
organic materials and environmentally friendly practices.
In-room lamps, for instance, have been custom-designed
by Simon Pearce, who uses a waterfall to generate
electricity and to operate a glassblowing furnace and
potter's wheel.
18. Purchase from sustainable stocks
To preserve fish stocks, the key is not to purchase any
! 24!
fish species on the IUCN Red List of Threatened
Species.
Compass has become the first contract caterer to be able
to trace the fish on its menu back to the boat that caught
it and subsequent fisheries, through gaining Marine
Stewardship Council (MSC) chain of custody
trace­ability certification. So far, five of its contracts are
covered by the certification.
19. Protect wildlife
There are many initiatives to preserve wildlife in country
properties where, arguably, the issue of sustainability is
overtaking that of ecology.
The Langdale Hotel and Timeshare Complex in
Cumbria, for instance, is maintaining bird-feeding
stations, controlling grey squirrels and introducing red
squirrel feeders, and developing a bio-diversity
management plan with Lancaster University. "We don't
have to do it," says general manager Nick Lancaster, "but
our natural surroundings are what bring the guests in the
first place. If we are not prepared to protect our
surroundings, then we are not prepared to protect our
business."
20. Serve Fairtrade
The hospitality industry has generally embraced
Fairtrade products.
At the budget end, there are hotel companies such as
Umi serving Fairtrade teas and World Land Trust-
approved Puro Coffee (every kilogram of Puro espresso
sold sees money given to buy and protect rainforest in
South America), while the luxury end is represented by
hotels such as the Vineyard at Stockcross, in Berkshire,
! 25!
which has taken on First Choice Coffee's Black and
White automatic machines. These require less training
than other coffee equipment, and are thus suitable for a
24-hour hotel environment.
Cavendish hotel in London's Jermyn Street uses Belu
bottled mineral water, which invests all of its profits in
clean water projects, Fairtrade, Cafe Direct and Duchy
Originals.
21. Reward greener guests
The Cavendish hotel on Jermyn Street, London, offers a
50% discount on valet parking charges for
environmentally friendly vehicles. The list of qualifying
vehicles is taken from the Energy Savings Trust and
includes hybrid cars, alternative fuel cars, LPG-
converted cars and electric cars. Users of the latter are
offered facilities to recharge their vehicles.
The Sundial venues and events group, which has
accommodation in Surrey, Northamptonshire and
Warwickshire, offers delegates who travel by public
transport, or who car-share, a credit of £5 to spend in the
bar.
22. Use green service suppliers
There is a growing trend for hospitality companies to
check out the eco-friendliness of their service suppliers.
The Crowne Plaza London hotel was the first hotel to
join the Green 500 - an initiative launched by the London
Development Agency for 500 blue-chip companies in the
capital. One of the hotel's standpoints is to take on only
suppliers that meet its own green credentials. An
example is its car supplier, Green Tomato Cars, which is
an environmentally friendly private hire company that
! 26!
uses the Toyota Prius hybrid and plants trees to make up
for unavoidable emissions.
23. Educate your clients
To be fully green, the food service sector needs to ensure
that its clients buy into the environmentally friendly
ethos.
Contract caterer Bartlett Mitchell runs green roadshows
to explain to clients what the company is doing to reduce
its impact on the environment and to encourage them to
buy greener food and services. The roadshow team
explains why the company prefers to source organic or
locally supplied food, and puts forward the benefits of
using recycled napkins and paper cups, starch plastic
cutlery and so on in a bid to spread sustainable, eco-
friendly catering.
24. Educate your staff
Considerate Hoteliers says that hotels can reduce energy
consumption by 20% through regular staff training in the
importance of being green. Staff can also take what they
learn into their everyday lives.
Sundial venues and events group is launching
environmental seminars for its staff at its properties in
Surrey, Warwickshire and Northamptonshire. Kicking
off the initiative is George Martin, head of sustainability
at Wilmott Dixon Construction's rethinking business
unit, who talks about sustainable development, changes
in the earth's atmosphere, legislation, sustainable
procurement - and how all this could affect the company.
25. Plant a tree
While planting trees can't be an excuse for increasing
! 27!
carbon emissions, it does help to mitigate pollution.
Properly managed tree-planting schemes are good, no
matter what the motive.
Considerate Hoteliers linked with London charity the
Westminster Tree Trust to encourage hotels to sponsor a
tree nearby in order to enhance the environment,
encourage bird life and help improve air quality. The cost
is £300 per tree, including planting, maintenance and
replacement in the event of failure. For an extra cost, the
sponsor can have a brass plaque.
Participants include the Dorchester hotel in Park Lane,
which has planted a London plane tree opposite the hotel,
and Luna House hotel in Belgrave Road, which
commissioned a tree outside the Passport Office. The
Ritz is considering sponsorship of trees in nearby
Allington Street.
Conclusion
It is now recognized that poverty reduction and
sustainable development will not be achieved through
government action alone. Policy makers are paying
increasing attention to the potential contribution of the
private sector to such policy objectives.
The concept of CSR is sometimes used as shorthand for
businesses’ contribution to sustainable development. A
number of core development issues are already central to
the international CRS agenda.
They include labour standards, human rights, education,
health, child labour, poverty reduction, conflict and
environmental impacts.
CSR is often associated with large companies and
particularly with multinational and global enterprises.
CSR has even on occasion attracted criticism for being
! 28!
insensitive to local priorities and the basic livelihood
needs of people in developing countries, particularly
where CSR codes of conduct are perceived as barriers to
market access for some producers.
But the CSR agenda needs to be locally owned if it is to
make a significant contribution to local development
priorities – and it must be relevant to local enterprises,
whether large or small.
This means creating a space to explore the relationship
between business and society at a regional, national or
local level and finding the appropriate language for these
discussions.
As the extremely successful entrepreneur, Raymond
Ackerman, founder of the multi billion Rand retailer,
Pick n Pay, often cites: ‘Doing good is good business’.
This comment has been based on direct knowledge of
developing and implementing sound, regular social
responsibility programmes within the organizational
structures and within the local communities.

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CSR : Impact on marketing strategy

  • 2. ! 2! Index! ! Sr.!No.! ! ! Topic! Page!No.! 1.! Introduction! 3! 2.! Importance!of!CSR! 5! 3.! Need!for!CSR!! 7! 4.! CSR!towards!Employees!! 9! 5.! CSR!towards!Consumers! 11! 6.! Types!of!CSR!! 13! 7.! Characteristics!of!Corporation!! 15! 8.! Ways!to!do!CSR!and!their!Examples! 16! 9.! Characteristics!of!Corporation!affecting!CSR! 16! 10.! Conclusion! 27!
  • 3. ! 3! Introduction The practice of CSR or Corporate Social Responsibility as a paradigm for firms and businesses to follow has evolved from its early days as a slogan that was considered trendy by some firms following it to the present day realities of the 21st century where it is no longer just fashionable but a business requirement to be socially responsible. This evolution has been necessitated both due to the myriad problems that we as a race face which has changed the environment under which firms operate as well as a realization among business leaders that profits as the sole reason or raison d’être for existence can no longer hold good. The reason why companies must look beyond profits is also due to the peculiar situation that humanity finds itself in the second decade of the 21st century. Given the political, economic, social and environmental crises that humans as a race are confronting, corporations have a role to play since they contribute the most to the economic well being of humanity and in turn influence the political and social trends. Corporate Social Responsibility or CSR makes for eminent business sense as well when one considers the knock-on effect that social and environmental responsibility brings to the businesses. For instance, corporations exist in a symbiotic relationship with their environments (the term environment refers to all the components of the external environment and not to ecological environment alone) where their exchange with the larger environment determines to a large extent how well they do in their profit seeking endeavors.
  • 4. ! 4! The evolution of CSR as a concept dates back to the 1950’s when the first stirrings of social conscience among management practitioners and theorists were felt. The writings of Keith Davis starting in the 1950’s and continuing into the 1970’s speak of the need for businesses to engage in socially responsible behavior and to ensure that society as a whole does not lose out in the process of profit making behavior by businesses. CSR as a concept was starting to be taken seriously by the time the 1970’s dawned and through the tumultuous decade when big business and their minions were accused of several misdemeanors pertaining to rampant disregard for the environment and society as a whole. One can trace the anxieties of activists and management theorists during this time as they feared that the rapacious behavior of businesses and corporations ought to be checked if a semblance of social responsibility was to be maintained. Of course, both sides started to stick to their positions and this resulted in the debate over CSR getting shriller during the 1980’s. I conclude the article with two quotes that illustrate the need to think beyond the ordinary and at the same time remind ourselves of the responsibility we have towards succeeding generations: The first one by Albert Einstein where he said that “problems cannot be solved from the same level of consciousness that created them” and the second one which says that “We have not inherited the Earth. We have merely borrowed it from our children.”
  • 5. ! 5! Importance of CSR The term corporate social responsibility gives a chance to all the employees of an organization to contribute towards the society, environment, country and so on. We all live for ourselves but trust me living for others and doing something for them is a different feeling altogether. Bringing a smile to people’s life just because your organization has pledged to educate the poor children of a particular village not only gives a sense of inner satisfaction but also pride and contentment. One should never forget the importance of society and environment in our lives. It is indeed high time when we also start thinking about people around us who are less privileged and fortunate than us. Corporate social responsibility gives an opportunity to organizations to work towards the betterment of the society and make it a better place to live. Corporate social responsibility goes a long way in creating a positive word of mouth for the organization on the whole. Doing something for your society, stake holders, customers would not only take your business to a higher level but also ensure long term growth and success. Corporate social responsibility plays a crucial role in making your brand popular not only among your competitors but also media, other organizations and most importantly people who are your direct customers. People develop a positive feeling for a brand which takes the initiative of educating poor children, planting more trees for a greener environment, bringing electricity to a village, providing employment to people and so on. You really do not have to invest much in corporate social responsibility activities. Do not
  • 6. ! 6! undertake CSR activities only to gain publicity but because you believe in the cause. There are many organizations which tap remote villages, some of which are even unheard as an initiative of corporate social responsibility. Corporate social responsibility also gives employees a feeling of unparalleled happiness. Believe me, employees take pride in educating poor people or children who cannot afford to go to regular schools and receive formal education. CSR activities strengthen the bond among employees. People develop a habit of working together as a single unit to help others. Infact they start enjoying work together and also become good friends in due course of time. They also develop a sense of loyalty and attachment towards their organization, which is at least thinking for the society. Who does not like to work with an organization where management is kind enough to take out time for the society and contribute in their own small way? Ask yourselves, when is the last time you did something for your society, customers, stake holders or environment? Corporate social responsibility also goes a long way in building a positive image of the brand. Trust me, your brand becomes a “common man’s brand”. People start believing in the brand and nothing can help you more than your customers trusting you and your brand. Positive word of mouth eventually helps to generate more revenues for the organization. In today’s scenario of cut throat competition, everyone is so occupied in chasing targets and handling the pressure at workplace that we actually forget that there is a world around us as well. Have you ever thought about those who can’t even afford proper meal twice a day? If you
  • 7. ! 7! can take some time out of your busy schedule, please try to visit a village once. You would be surprised to see how people manage their lives there. Corporate social responsibility in a way also plays a crucial role in the progress of the society, which would at the end of the day benefit us only. Need for CSR Corporate Social Responsibility or CSR makes for eminent business sense as well when one considers the knock-on effect that social and environmental responsibility brings to the businesses. For instance, corporations exist in a symbiotic relationship with their environments (the term environment refers to all the components of the external environment and not to ecological environment alone) where their exchange with the larger environment determines to a large extent how well they do in their profit seeking endeavours. When one considers the fact that the RBV or the Resource Based View of the firm is all about how well the firm exists in harmony with its external environment and how this exchange of inputs and outputs with the environment determines the quality of its operations, it can be inferred that socially responsible business practices are indeed in the interest of the firm and the argument against imposing hidden social taxes on the firms by undertaking socially responsible business practices might not hold good in the current business landscape. Indeed, the world since the days of Friedman has changed so much that socially responsible business practices ought to be the norm rather the exception and
  • 8. ! 8! the various readings surveyed for this paper do seem to indicate that it is high time for businesses to engage in responsible behaviour. However, there is a tendency to treat CSR as yet another cost of business and hence be business like about the practice. So, mainstreaming the idea might not bring the desirable effect unless the media, the businesses, and the citizens themselves understand what is at stake and behave accordingly. Paying lip service or corporatizing the idea of CSR might not be the intended outcome of the proponents and the advocacy groups that promote this idea. Rather, a change in the mindset and attitude is what these groups have in mind when they push for socially responsible practices. It has been mentioned elsewhere that CSR as a concept and as a paradigm ought to be woven into the DNA of the corporations and when the very fabric resonates with the threads of social responsibility; the goals of conscious capitalism and compassionate corporations would be realized. Hence, a cautionary finger wagging is due for those who believe that since the concept of CSR has been mainstreamed, they can relax in the knowledge that corporations would do the rest. Given the history of profit seeking and mercantilist behaviour where fads and ideas come and go but the very nature of the corporations mutates rather than undergoes a fundamental change, we still have some distance to cover before the goals of the idea of CSR are achieved. Further, we should not end up in a situation where the imperatives of the 21st century force corporations to change their behaviour. Instead, a voluntary mindset change is something that is better suited given the vast resources that corporations have and
  • 9. ! 9! which they deploy to resist change and thwart those that push for legislation that aims to do so. CSR towards Employees What is an organization without its employees? Nothing. Employees are said to be the true assets of an organization. Even the best of technology or best of infrastructure would not be of much use if employees do not perform up to the mark and are not satisfied with their current profiles. As they say, “charity always begins at home”. The first and the foremost responsibility of an organization towards its employees is to ensure that they are happy and satisfied with their jobs. It is unethical to treat employees as mere machines and expect them to work continuously for eight to nine hours at a stretch just because they are being paid. Do not treat your staff as labours. Management needs to ensure that individuals associated with their organization are actually enjoying what they are doing and also growing with time. Job profiles ought to be delegated equally as per expertise, knowledge and educational qualification of individuals so that no one is overburdened. Provide healthy working conditions to your employees. Assign proper workstations or cubicles for them to work comfortably and eventually deliver their level best. Everyone needs some amount of privacy and make sure your employees get the same; else soon they would be frustrated with their job and look for better opportunities. Sit with your employees from time to time and try to find out whether they are happy with their job or not and if at all they are facing any problems in the system? It is the
  • 10. ! 10! responsibility of the management to look after the safety of its employees. Ensure your office building is resistant to fire and earthquake. You can’t play with the lives of so many individuals. Till the time an employee is on official duty, it becomes the responsibility of the organization to assist him/her in case of a medical emergency or other serious concern. If one of your engineers gets hurt at your site, it is your responsibility to immediately take him to the hospital and provide basic medical assistance. Crisis can come anytime. If an employee asks for some advance from his/her salary, please do not say a blunt NO. Analyse the whole situation and find out how serious the whole issue is? He/she might need some money to treat his/her ailing father. It would be really inhuman to deny help during such circumstances. I don’t think there should be much of a problem in this; after all, he is asking money from his own salary only. God forbid, if any of your employees dies, make sure you extend your sympathies and support to his/her family members to cope up with such an irreparable loss. Whenever your employees need your help, make sure you are there with them. A feeling of loyalty towards the organization comes only when the management treats all its employees as part of one big family and takes good care of them. Stand by each other not only during happy times but also sad moments. Remember; the fun is to enjoy not only the happiness but the challenges together. Encourage employees to praise and appreciate each other. Give them ample opportunities to show their talent. Provide them an environment where they can hone their skills with time. Problems arise when management puts a full stop on the growth of employees.
  • 11. ! 11! Ask them to interchange roles, so that everyone gets to work on something new. Timely appraisals are important. It is the responsibility of the management to ensure that employees who are working really hard and showing progress are suitably rewarded. Incentives, cash prizes, bonuses go a long way in not only motivating the employees but also creating a healthy and positive ambience at the workplace. CSR towards Customers Treat your customers as kings and do not think of them only when you have a pressure to meet your targets within the stipulated time frame. There are organizations that do not bother to touch base with their customers the whole month but are active only when they fall short of their targets and they have an appraisal in the coming month. Understand that a customer buys your products or services only when he/she trusts your brand and most importantly believes in you. Understand the needs and requirements of your clients. Find out as to why they need a particular product and how your product would benefit them. You need to build a strong relationship with your customers for them not only to remain your loyal clients but also bring more people along with them. It is the responsibility of the organization to give correct suggestions and feedbacks to customers. Avoid making fake promises and commitments which you yourself know are difficult to fulfil. What is the need of selling a mobile phone with just one day battery backup when the customer has specifically asked you for a handset with at least 3 days backup?
  • 12. ! 12! Never lie to your customers. It is foolish to cook false stories. Trust me, you will be caught. In today’s world, where information is just a click away, everyone does his/her thorough research before purchasing something. Unnecessarily you will lose your respect in front of them. If you can’t deliver something, please mention it clearly. They might not invest in that particular product but believe me, would definitely come back to you in near future just because you were honest and guided them correctly. It is pointless to badmouth your competitors. Businesses dealing with customer’s money need to be extra careful with clients. Make sure their money is invested in a right way and also multiples at a rate promised to them. Do not run away with their money. It is one of the worst things you can do to your customers. It is your responsibility to take care of their hard earned money. Suggest them the right schemes and right plans as per their need. Do not just think of your own selfish targets and incentives. This way, you will definitely meet your targets once or twice but trust me not for a very long time. The moment, the customer knows that you have cheated on him/her; your game is over. He would neither come to you again nor recommend your brand to his friends or acquaintances. Respect your customer’s time. Do not decide the time and venue as per your availability and comfort. If the customer wants to meet you at 5 in the evening, make sure you are there on time. Neither reach too early nor too late. Do not keep your customers waiting. Do not forget that there are several options available in the market. Your loss is someone else’s gain. Organizations tend to forget their customers once the deal is done. After sales service is essential and
  • 13. ! 13! ensures long term growth and profits for the organization. Make sure you are in touch with your customers after the deal as well if you wish to survive the cut throat competition. Do not ignore their calls once you have sold your product. If the customer is not satisfied with your product, it is your responsibility to replace it or provide a solution. Customer feedbacks are important and help you understand the satisfaction level of your esteemed customers and how you can make your product better in due course of time. Types of Corporate Social Responsibility CSR can encompass a wide variety of tactics, from giving nonprofit organizations a portion of a company's proceeds, to giving away a product or service to a worthy recipient for every sale made. Here are a few of the broad categories of social responsibility that businesses are practicing: Environment: One primary focus of corporate social responsibility is the environment. Businesses, both large and small, have a large carbon footprint. Any steps they can take to reduce those footprints are considered both good for the company and society as a whole. Philanthropy: Businesses also practice social responsibility by donating to national and local charities. Whether it involves giving money or time, businesses have a lot of resources that can benefit charities and local community programs.
  • 14. ! 14! Ethical labor practices: By treating employees fairly and ethically, companies can also demonstrate their corporate social responsibility. This is especially true of businesses that operate in international locations with labor laws of other countries not very strong.
  • 15. ! 15! Characteristics of Corporation • Ease of formation: It should be easy to form the organization. The formation should not involve many legal formalities and it should not be time consuming. • Adequacy of Capital: The form of organization should facilitate the raising of the required amount of capital at a reasonable cost. If the enterprise requires a large amount of capital, the preconditions for attracting capital from the public are a) safety of investment b) fair return on investment and c) transferability of the holding. • Limit of Liability: A business enterprise may be organized on the basis of either limited or unlimited liability. From the point of view of risk, limited liability is preferable. It means that the liability of the owner as regards the debts of the business is limited only to the amount of capital agreed to be contributed by him. • Direct relationship between Ownership, Control and Management: The responsibility for management must be in the hands of the owners of the firm. If the owners have no control on the management, the firm may not be managed efficiently. • Continuity and Stability: Stability is essential for any business concern. Uninterrupted existence enables the entrepreneur to formulate long-term plans for the development of the business concern. • Flexibility of Operations: another ideal characteristic of a good form of organization is flexibility of operations. Changes may take place either in market conditions or the states’ policy toward industry or in the conditions of supply of various factors of production. The nature of organization should be such as to be able to adjust itself to the changes without much difficulty.
  • 16. ! 16! Different ways to do CSR with examples & How different characteristics of Corporation affect their CSR Activities In the following 25 ways to do CSR along with their examples, we understand how characteristics of corporation drive their CSR activities. Traits of a corporation is also reflected in the CSR activities they perform. 1. Fund staff for voluntary work The 11-strong hotel group Red Carnation is in the early stages of introducing volunteer days, which allow staff to take two extra paid days off each year to work as a volunteer. Staff are encouraged to work for one of the charities that the group supports, such as Starlight Children's Foundation or the Great Ormond Street Hospital Tick Tock Club, but they can request that another charity be considered. One of the first candidates has just completed a day at Action Against Hunger. Food service company Sodexo allows staff to volunteer for work with its main charity partner, FareShare, which has a five-year goal of helping 100,000 people by providing more than 30 million meals, using 20,000 tonnes of redistributed food every year. To date, Sodexo employees have provided 700 hours of volunteer support, including members of the executive team, who spent a couple of days at FareShare's Bermondsey food depot earlier this year.
  • 17. ! 17! 2. Support fresh water schemes In a bid to support a charitable supplier, Aramark generates sales for the OneWater brand through its contracts. OneWater puts all its profits into buying water pumps to create clear water systems in Africa. Elsewhere, Imago, the hotel and conference arm of Loughborough University, is Fairtrade-accredited and donates 5p from every bottle of water sold to help fund a rainwater harvesting scheme in a small village in India. 3. Pass on your technology Contract caterer BaxterStorey donates its old PCs to Computer Aid International. This charity refurbishes computers and provides them at a low cost to schools in the developing world, to charities and so on. The knock- on effect is that it reduces potential waste. 4. Look after employee health The consequences of ensuring that your staff eat well and live healthily are obvious in both business and CSR terms. Aramark's Business Action on Health team is part of a Business in the Community (BITC) campaign. This campaign highlights the business benefits of better health at work, and is trying to make reporting on workplace health issues commonplace in UK boardrooms. It was also part of the subgroup developing the healthy eating toolkit, which has been distributed to all FTSE100 companies. 5. Encourage guests to raise funds Many hospitality companies do this as a matter of course. Red Carnation hotels, for instance, has for some years
  • 18. ! 18! been asking guests to make a contribution of £1 per stay. The company then matches the donation and has so far raised £38,000 for the Great Ormond Street Hospital Tick Tock Club and more than £250,000 for the Starlight Children's Foundation. 6. Campaign sponsorship Many events and campaigns could not happen without industry support. For instance, Aramark is one of the sponsors of British Food Fortnight, one the largest volunteer movements educating children about food. Besides encouraging schools to invite chefs into classrooms to teach children how to cook, it celebrates British food through a range of promotions in pubs and restaurants. 7. Set up a charity Company charities provide a structured and tax-efficient way to support local communities and charitable causes. Sodexo's registered charity, the Sodexo Foundation, launched the UK-based STOP Hunger campaign to combat poor nutrition in local communities. It does this by teaching basic nutritional cooking skills. Sodexo covers the administrative costs and staff raise the funds. So far, they have raised upwards of £250,000 since the campaign's launch in 2005, by being sponsored to jump out of aeroplanes or run marathons. They also help to feed people in disadvantaged communities through breakfast clubs for vulnerable children or by providing food for the homeless. Further, the BaxterStorey Foundation became a registered charity in July. The company supports four causes each year, including industry charity Hospitality
  • 19. ! 19! Action, plus issues close to its employees' hearts, such as local charities, sponsorship of sports teams, supporting individual talent, and worldwide causes. Funds are generated through initiatives such as the London-to-Brighton bike ride, the Three Peaks Challenge, and in 2009 a BaxterStorey team will be undertaking a London-to-Paris bike ride. BaxterStorey has also recently launched a "Penny-per-cup" scheme with sustainable coffee company First Choice Coffee. During the first year, the scheme is expected to generate £70,000 for the charity. Deputy chief executive William Baxter says: "As an employer of nearly 5,000 people, we want to make sure that we're not only supporting the big charities but also offering a helping a hand to lesser-known programmes and initiatives that are close to the heart of our employees." Catering supplier Apetito has set up a staff foundation, which isn't a charity but which does champion the charitable and voluntary work carried out by its staff and their children, raising £50,000 in community donations since it began in 2007. The foundation has recently donated £500 to aid the work of African Joy, which collects second-hand goods to recycle and send to African schools and hospitals. 8. Recycle office supplies BaxterStorey ensures that 100% of all disposable cups and packaging used by the business are made from recycled, recyclable or biodegradable materials. All waste paper is recycled and, at the end of 2006, the company changed from purchasing virgin paper to 100% recycled paper, thus saving 2.4 tonnes of CO2 in 2007.
  • 20. ! 20! Staff are encouraged to print office paperwork on both sides of a sheet of paper and to recycle afterwards. BaxterStorey has also created printing hubs at its head office in Reading, reducing the number of printers it uses by 50% despite office staffing having grown by 130%. 9. Support a conservation scheme The Langdale Hotel and Timeshare Complex in the Lake District helped to found the Tourism & Conservation Partnership (www.ourstolookafter.co.uk), a visitor pay- back scheme. Langdale's guests have raised nearly £145,000 through an option to donate when paying their bill. The North West Regional Development Agency matches the donations made by guests, and the hotel also makes regular donations. Since being established 14 years ago, the partnership has raised £1m. 10. Cycle to work Giving staff incentives to leave their cars at home is proving popular among hospitality operators and suppliers. As part of Foster Refrigerator's Green Week, staff were encouraged to cycle or walk to work, or to car-share. Those who did were entered into a prize draw to win store vouchers and eco-friendly products, such as an eco kettle. Since the launch of Green Week last year, 40% of Foster's staff have now chosen to walk or cycle to work regularly. Food service company Brookwood Partnership is providing cycle vouchers and bicycle locks through a link with Faircare, which runs government-funded
  • 21. ! 21! initiatives to help employees buy bikes and equipment. This scheme falls under the 1999 Finance Act for Tax Exemption and the Government Green Transport Plan. Employees save as much as 50% on retail prices through a salary-sacrifice scheme, whereby an amount is deducted each month from their gross pay, which generates tax and NI savings for the employee and employer. Brookwood allows the employees to benefit from the employer savings also. This scheme is being relaunched, however, as initial take-up wasn't as high as was hoped. 11. Cut delivery miles In 2007, Sodexo swept away 360,000 road miles by working with supplier Brakes to reduce deliveries to sites. The company imposed a minimum order requirement to discourage "little and often" deliveries, complemented by the use of software to plan routes more effectively. It represents a reduction of 400 tonnes of CO2 compared with the previous year. Purchasing in bulk can reduce the number of containers used. 12. Work with local producers Increasingly, large-scale purchasers in the food service industry recognise that they can play a big part in helping to maintain our countryside by supporting local farming communities, seeking products from sustainable sources and looking to reduce environmental impact. Sodexo Healthcare, for instance, has worked with NHS Shetland since 1992 and, as one of the largest employers on the Shetland Islands, sources as much as possible locally, buying from the local baker, fishmonger and
  • 22. ! 22! dairy. In its Scottish Government contracts, 52% of meat sourced by Sodexo is Scottish. BaxterStorey sources all fresh produce from producers in the UK that are part of accreditation schemes such as Red Tractor, Welsh Lamb and Lion brand, and is developing its policy for sourcing fish that meet the Marine Stewardship Council (MSC) requirements (see number 17, below). 13. Spread the word in schools The Year of Food and Farming is a business-led campaign endorsed by the Department for Environmental and Rural Affairs (Defra). It aims to help children to find out more about the countryside and where their food comes from, through visits to farms, cookery workshops in schools and other first-hand experiences. Representing the hospitality industry, Harvester pubs and Toby Grill (both brands belonging to Mitchells and Butlers) and Sodexo provide sponsorship. Sodexo runs cookery workshops at about 500 primary and independent preparatory schools across the country, reaching as many as 9,000 children. Programme director Tony Cooke says: "There is irrefutable evidence that experiences such as making bread have a profoundly positive effect on children's relationship with food." 14. Help people with disabilities A team from the Radisson SAS hotel in Edinburgh has been working with Enable Scotland, a charity that helps people with learning disabilities. In a recent project, staff from the hotel have been working alongside young men
  • 23. ! 23! to help them find stable jobs. One initiative has been to help them plant trees from seed in Edinburgh's Craigmillar Castle Park. 15. Set your staff a challenge Many companies support their staff in fundraising activities. For instance, a team of 20 Aramark employees recently did the Five Peaks Challenge to raise money for Childline and Macmillan nurses. This meant climbing the five highest mountains in Scotland, England, Wales, Northern Ireland and the Irish Republic within 48 hours. Aramark raised £41,500 from the peak challenge and a race day which took place around the same time. 16. Share your swimming pool The Langdale Estate in the Lake District has shown its commitment to the local school by providing private use of its pool every Thursday during term-time for swimming lessons. 17. Tap into eco-friendly workers Stowe Mountain Lodge, a new US$400m ski resort in Vermont, USA, has employed eco-friendly artisans to build furniture and design features. The artisans use organic materials and environmentally friendly practices. In-room lamps, for instance, have been custom-designed by Simon Pearce, who uses a waterfall to generate electricity and to operate a glassblowing furnace and potter's wheel. 18. Purchase from sustainable stocks To preserve fish stocks, the key is not to purchase any
  • 24. ! 24! fish species on the IUCN Red List of Threatened Species. Compass has become the first contract caterer to be able to trace the fish on its menu back to the boat that caught it and subsequent fisheries, through gaining Marine Stewardship Council (MSC) chain of custody trace­ability certification. So far, five of its contracts are covered by the certification. 19. Protect wildlife There are many initiatives to preserve wildlife in country properties where, arguably, the issue of sustainability is overtaking that of ecology. The Langdale Hotel and Timeshare Complex in Cumbria, for instance, is maintaining bird-feeding stations, controlling grey squirrels and introducing red squirrel feeders, and developing a bio-diversity management plan with Lancaster University. "We don't have to do it," says general manager Nick Lancaster, "but our natural surroundings are what bring the guests in the first place. If we are not prepared to protect our surroundings, then we are not prepared to protect our business." 20. Serve Fairtrade The hospitality industry has generally embraced Fairtrade products. At the budget end, there are hotel companies such as Umi serving Fairtrade teas and World Land Trust- approved Puro Coffee (every kilogram of Puro espresso sold sees money given to buy and protect rainforest in South America), while the luxury end is represented by hotels such as the Vineyard at Stockcross, in Berkshire,
  • 25. ! 25! which has taken on First Choice Coffee's Black and White automatic machines. These require less training than other coffee equipment, and are thus suitable for a 24-hour hotel environment. Cavendish hotel in London's Jermyn Street uses Belu bottled mineral water, which invests all of its profits in clean water projects, Fairtrade, Cafe Direct and Duchy Originals. 21. Reward greener guests The Cavendish hotel on Jermyn Street, London, offers a 50% discount on valet parking charges for environmentally friendly vehicles. The list of qualifying vehicles is taken from the Energy Savings Trust and includes hybrid cars, alternative fuel cars, LPG- converted cars and electric cars. Users of the latter are offered facilities to recharge their vehicles. The Sundial venues and events group, which has accommodation in Surrey, Northamptonshire and Warwickshire, offers delegates who travel by public transport, or who car-share, a credit of £5 to spend in the bar. 22. Use green service suppliers There is a growing trend for hospitality companies to check out the eco-friendliness of their service suppliers. The Crowne Plaza London hotel was the first hotel to join the Green 500 - an initiative launched by the London Development Agency for 500 blue-chip companies in the capital. One of the hotel's standpoints is to take on only suppliers that meet its own green credentials. An example is its car supplier, Green Tomato Cars, which is an environmentally friendly private hire company that
  • 26. ! 26! uses the Toyota Prius hybrid and plants trees to make up for unavoidable emissions. 23. Educate your clients To be fully green, the food service sector needs to ensure that its clients buy into the environmentally friendly ethos. Contract caterer Bartlett Mitchell runs green roadshows to explain to clients what the company is doing to reduce its impact on the environment and to encourage them to buy greener food and services. The roadshow team explains why the company prefers to source organic or locally supplied food, and puts forward the benefits of using recycled napkins and paper cups, starch plastic cutlery and so on in a bid to spread sustainable, eco- friendly catering. 24. Educate your staff Considerate Hoteliers says that hotels can reduce energy consumption by 20% through regular staff training in the importance of being green. Staff can also take what they learn into their everyday lives. Sundial venues and events group is launching environmental seminars for its staff at its properties in Surrey, Warwickshire and Northamptonshire. Kicking off the initiative is George Martin, head of sustainability at Wilmott Dixon Construction's rethinking business unit, who talks about sustainable development, changes in the earth's atmosphere, legislation, sustainable procurement - and how all this could affect the company. 25. Plant a tree While planting trees can't be an excuse for increasing
  • 27. ! 27! carbon emissions, it does help to mitigate pollution. Properly managed tree-planting schemes are good, no matter what the motive. Considerate Hoteliers linked with London charity the Westminster Tree Trust to encourage hotels to sponsor a tree nearby in order to enhance the environment, encourage bird life and help improve air quality. The cost is £300 per tree, including planting, maintenance and replacement in the event of failure. For an extra cost, the sponsor can have a brass plaque. Participants include the Dorchester hotel in Park Lane, which has planted a London plane tree opposite the hotel, and Luna House hotel in Belgrave Road, which commissioned a tree outside the Passport Office. The Ritz is considering sponsorship of trees in nearby Allington Street. Conclusion It is now recognized that poverty reduction and sustainable development will not be achieved through government action alone. Policy makers are paying increasing attention to the potential contribution of the private sector to such policy objectives. The concept of CSR is sometimes used as shorthand for businesses’ contribution to sustainable development. A number of core development issues are already central to the international CRS agenda. They include labour standards, human rights, education, health, child labour, poverty reduction, conflict and environmental impacts. CSR is often associated with large companies and particularly with multinational and global enterprises. CSR has even on occasion attracted criticism for being
  • 28. ! 28! insensitive to local priorities and the basic livelihood needs of people in developing countries, particularly where CSR codes of conduct are perceived as barriers to market access for some producers. But the CSR agenda needs to be locally owned if it is to make a significant contribution to local development priorities – and it must be relevant to local enterprises, whether large or small. This means creating a space to explore the relationship between business and society at a regional, national or local level and finding the appropriate language for these discussions. As the extremely successful entrepreneur, Raymond Ackerman, founder of the multi billion Rand retailer, Pick n Pay, often cites: ‘Doing good is good business’. This comment has been based on direct knowledge of developing and implementing sound, regular social responsibility programmes within the organizational structures and within the local communities.