Banking Servises
1
CORPORATE SOCIAL RESPONSIBILITY AS AN INTERNAL MARKETING STRATEGY
C.B. Bhattacharya
Sankar Sen
Daniel Korschun
July 2007
Forthcoming: Sloan Management Review, Fall 2007
Abstract
In today’s economy, companies must work harder than ever to attract, retain and motivate talented employees. Our research shows that corporate social initiatives (CSR) can serve as a highly effective component of internal marketing programs by fulfilling employee needs and drawing them to identify strongly with the company. Thus, CSR activity is capable of yielding substantial returns to both the employee and the company. This paper highlights some of the challenges companies face in the effective deployment of their CSR strategy internally, among employees. The paper ends with some suggested solutions to these challenges Specifically, we recommend that managers (1) bring their employees closer to the company’s CSR initiatives, (2) use a contingent input-output approach to formulate, evaluate and manage CSR-related outcomes, (3) understand and fulfill employee needs related to CSR, (4) focus on strengthening employee identification with the company, and (5) engage employees in co-creating CSR value. 2
CORPORATE SOCIAL RESPONSIBILITY AS AN INTERNAL MARKETING STRATEGY
In today’s employment market, competition for employees who are talented, creative, and driven to satisfy customers is fierce, amounting to what McKinsey & Company has characterized as a war for talent.
1
Thus, a company’s success hinges on their ability to attract, motivate and retain a talented pool of employees. Evidence is mounting that a company’s corporate social responsibility (CSR) activities is a legitimate, compelling and increasingly important way to attract and retain good employees. For example, in a bid to burnish images as socially responsible companies and thereby attract and retain talent, CEO’s of high profile companies such as Home Depot, Delta
CORPORATE SOCIAL RESPONSIBILITY AS AN INTERNAL MARKETING STRATEGY
C.B. Bhattacharya
Sankar Sen
Daniel Korschun
July 2007
Forthcoming: Sloan Management Review, Fall 2007
Abstract
In today’s economy, companies must work harder than ever to attract, retain and motivate talented employees. Our research shows that corporate social initiatives (CSR) can serve as a highly effective component of internal marketing programs by fulfilling employee needs and drawing them to identify strongly with the company. Thus, CSR activity is capable of yielding substantial returns to both the employee and the company. This paper highlights some of the challenges companies face in the effective deployment of their CSR strategy internally, among employees. The paper ends with some suggested solutions to these challenges Specifically, we recommend that managers (1) bring their employees closer to the company’s CSR initiatives, (2) use a contingent input-output approach to formulate, evaluate and manage CSR-related outcomes, (3) understand and fulfill employee needs related to CSR, (4) focus on strengthening employee identification with the company, and (5) engage employees in co-creating CSR value. 2
CORPORATE SOCIAL RESPONSIBILITY AS AN INTERNAL MARKETING STRATEGY
In today’s employment market, competition for employees who are talented, creative, and driven to satisfy customers is fierce, amounting to what McKinsey & Company has characterized as a war for talent.
1
Thus, a company’s success hinges on their ability to attract, motivate and retain a talented pool of employees. Evidence is mounting that a company’s corporate social responsibility (CSR) activities is a legitimate, compelling and increasingly important way to attract and retain good employees. For example, in a bid to burnish images as socially responsible companies and thereby attract and retain talent, CEO’s of high profile companies such as Home Depot, Delta
References: Business School Press, 2001). C.A. Bartlett and S. Ghoshal, “Building Competitive Advantage Through People,” MIT Sloan Management Review 43, no B. Grow, S. Hamm and L. Lee (2005), "The Debate Over Doing Good," Business Week, August 15, 2005, 76-78 Global Corporate Citizenship.” white paper, World Economic Forum Geneva, Switzerland, 2003 Marketing Management 1, no. 1 (Winter 1992): 24-34. R.J. Varey, “Internal Marketing: A Review and Some Interdisciplinary Research Challenges,” International Journal of Service Industry Management 6, no. 1 (1995): 40-63. P.K. Ahmed and M. Rafiq, “Internal Marketing Issues and Challenges,” European Journal of Marketing 37, no P. Kotler and N. Lee, “Corporate Social Responsibility: Doing the Most Good for Your Company and Your Cause,” (Hoboken, NJ: Wiley & Sons, 2004) (2006): 78-92. 10 H. Ward and N.C. Smith, “Business as Usual is Not the Answer to Society 's Problems,” Financial Times, October 20, 2006, p 11 Cone Corporate Citizenship Study, 2004, www.coneinc.com; P Relations 53, no. 6 (2002): 747-770. 14 HR Reporter 19, no. 7, April 10, 2006, 8-9. 19 S. Waddock and N. Smith, “Corporate Responsibility Audits: Doing Well by Doing Good,” MIT Sloan Management Review, 41, no.2 (Winter 2000): 75-83 Performance Behavioral Model For Consumers," Academy of Management Review 31, no. 3 (2006): 540-58. Objectives Through Social Sponsorships,” Journal of Marketing 70, no. 4 (2006): 154-169. 23 Administrative science Quarterly 46, no. 3 (2001): 379-413. Maignan and Ferrell, “Corporate Social Responsibility and Marketing,” 3-19; Turban and Greening, “Corporate