Organisations are now becoming more customer-centric as they seek to utilise cost-effective social media technology to achieve greater competitiveness. As competition increases, these organisations will need to differentiate themselves further by not only being customer oriented but also by becoming socially responsible.
Corporate Social Responsibility (CSR) is about managing the triple bottom line of the company in a socially responsible way. The triple bottom line refers to people, planet and profit. It involves treating people ethically, whether they are customers, employees, suppliers or other stakeholders. It is concerned with the proper and ethical use of resources in ensuring that the environment is not jeopardised and it seeks to create shareholder value and profit by enhancing market share through gaining the respect of customers.
How social media impacts Corporate Social Responsibility
As a result of the increase in transparency and scrutiny, social media has had a huge impact on organisations who try to differentiate themselves as being ethical. We now have transparency not only in how companies do business, but also in how they act while doing business.
It is no longer just about products, services or pricing, but about corporate behaviour which includes how a company treats employees, suppliers, customers and how they relate with their communities.
Social media is an important tool for an organisation to use to manage its brand. When you have the opportunity to communicate to a huge audience instantly and across channels, it means that there are lots of people scrutinising the company all the time. Social media is also a powerful tool for consumers to voice out against inappropriate corporate actions. An example of this is “Boycott BP”, a Facebook group formed to express opinion against the Gulf oil spill.
Managing your brand perception on social media channels also means a great opportunity to publicise all the relevant ways you are giving back into communities. This can influence your customer base and market share.
Colgate’s smile for change video on YouTube
Colgate Australia used Social Media to drive their Corporate Social Responsibility when they included on their Facebook page a Welcome app, with a message indicating that $1 would be donated to a needy kid for every smiling kid’s photo that was uploaded.
Colgate Mother’s Day smile with Mary Mary
Corporate credibility through Social CRM and Creative Communications 