Social Cause Marketing Sept-09

P L A T F O RM
Social Cause Marketing

When I saw the print and video advertisements of Tata Teaís Jaago Re!
campaign, I was pleasantly surprised. It was pleasant for two very important
Volume XII, No. 09 September 2009 reasons: Itís probably one of those rarest of the raresówhere a company is
not advertising (at least directly) its product. It is an equivalent of Public
Interest Litigation (PIL) in marketing, probably! The advertisement sensi-
Editor tized the Indian people to their voting rights, almost convincingly arguing
E N Murthy that itís a (hopefully, once-in-five-years) responsibility. I am sure you would
have come across Har Subah Sirf Utho Mat. Jaago Re! campaign. Wasnít it
pleasant, for a change? Secondly, it is talking about the most powerful and
Managing Editor
vibrant part of any functional and operational democracyópeople voice. Of
GRK Murty
course, apart from Tata Tea, other Indian companiesófor instance, HULó
have taken up social causes too. Itís a welcome change from all these FMCGs
Consulting Editor and why only FMCGs, by the way? I hope we would see more of these social
Dr. Nagendra V Chowdary cause marketing campaigns in future.
Cynics would have their plate full of arguments. Why not? After all, if
Editorial Team thereís no free lunch, why this? Just the way Adam Smith said, ìIt is not from
SV Srirama Rao (Associate Editor)
the benevolence of the butcher, the brewer or the baker, that we expect our
dinner, but from their regard to their own self-interest. We address ourselves,
JAR Moorthy (Associate Editor)
not to their humanity but to their self-love, and never talk to them of our own
Devi Rajnikanth necessities but of their advantagesî.
I Murali Krishna The arguments aside, I am intrigued about: (a) Why social cause marketing?
Jeen Jose What is the intended objective? Why should companies commit their share-
Adilakshmi G holdersí money for social issues? Or is it to do with the companyís values?
(b) What is the difference between a Social Cause Marketing initiative and a
Art Department
Corporate Social Responsibility initiative, after all? (c) Just the way brands are
endorsed by celebrities (famous sports persons, actors, etc), should a social cause
Bangaru Babu A (Chief Visualizer)
be endorsed by a powerful brand, in that the powerful brand becomes the celeb-
S Ganesh
rity endorser for the social cause taken up? What happens if an important social
P R V Prasad cause is addressed by a not-so-well-known brand? Would it have the same reach
Renu Kumar T as a powerful brand would have? (d) At what stage of brand life cycle, would it be
meaningful for any brand to get out of its comfort zone and start embracing social
Director (Production) causes? (e) Are social cause marketing initiatives truly sustainable?
H Sitaram
The answers to these interesting dimensions of social cause marketing
are provided by two experts, Mr. Harish Bijoor and Richard M Earle. Of all
these questions, the most interesting and intriguing question is: Can every
ISSN 0972-5172
brand take up social cause marketing initiatives and even if they do, would
they have the desired success? There may not be any scientific evidence at
• © All rights reserved. No part of this publication may be
the moment. However, going by the available evidence, it can safely be con-
reproduced or copied in any form by any means without
prior written permission. cluded that the effectiveness and efficacy of social cause marketing initia-
tives would be far-reaching if they are taken up by well-known brands in the
• Effective Executive is a registered trademark
same way brands are endorsed by celebrities. In other words, can a newly-
• The views expressed in this publication are purely launched brand take up social cause marketing initiatives? Even if they do,
personal judgements of the authors and do not reflect the would they be as successful as the ones done by an established brand?
views of The Icfai University Press.
And another dimension of social cause marketing is increasingly de-
• The views expressed by outside contributors represent creasing line of difference between corporate social responsibility initiatives
their personal views and not necessarily the views of the and social cause marketing initiatives. Authors/experts tend to view these
organizations they represent.
two ësocietalí dimensions of companies differently. While some argue that
• All effor ts are made to ensure that the published they are different, many strongly believe that both are serving the same menu
information is correct. The Icfai University Press is not with different recipes. What is most important in the case of social cause
responsible for any errors caused due to oversight or
otherwise. marketing efforts is that the initiatives taken up should complement and
enhance the brand architecture. Bereft of perfect synergy between what the
Printed at M/s. ICIT Software Center Pvt. Ltd., # 1, Technocrat
Industrial Estate, Balanagar ‘X’ Roads, Hyderabad - 500 037, brand stands for and the social causes taken up, the exercise would definitely
Andhra Pradesh and published on behalf of The Icfai University jeopardize the long-term interests of the company.
Press, # 126, Mahalaxmi Towers, Srinagar Colony, Hyderabad-
500 073, Andhra Pradesh. Editor: E N Murthy. Dr. Nagendra V Chowdary
SEPTEMBER 2009 3 EFFECTIVE EXECUTIVE
QUO T E S
“
Conducting your business in a so-
cially responsible way is good business. How to Reach Us...
It means that you can attract better em-
ployees and that customers will know
what you stand for and like you for it.
M Anthony Burns
The 21st Century will be the cen-
tury of the social sector organization. A companyís brand has almost
The more economy, money, and infor- nothing to do with its products or ser-
mation become global, the more com- vices anymore. Branding is really a SEND YOUR FEEDBACK/ARTICLES TO
munity will matter. And only the so- function of the dialogue between a
The Editor
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forms in the community, exploits its more meaningful that dialogue, the Banjara Hills, Panjagutta, Hyderabad-034,
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sources, and solves its problems. The Larry Weber Tel: +91(40) 23430-448 to 451
leadership, competence, and manage- Fax: +91(40) 23430-447
ment of the social sector nonprofit or- Customers think about products
ganization will thus largely determine and markets very differently from the E-mail: info@iupindia.org
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tury society. ketplace. Customers think in terms of
Peter Drucker activities, while firms think in terms of ADVERTISEMENT ENQUIRIES
products. Activities that are logically
A social business is a profit-mak- related in cognitive space may be
David Wilson, Sr. Manager
ing company driven by a larger mis- spread across very diverse providers
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customer loyalty interchangeably, as
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Mark Klein and Arthur Einstein
People rationalize buying deci-

sions based on facts, but people make
buying decisions based on feelings.
GrokDotCom
In marketing Iíve seen only one

strategy that canít miss ñ and that is to
“
Marketing puts the public face on
the brand. Customersí experiences are
influenced by how the promise of the
brand is delivered through the call
center, distribution channels, billing
and service departments ñ in short,
the Brand-Customer Relationship.
Scott Davis
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John Romero
CON T EN T S
INTERVIEW WITH
28
Harish Bijoor
Social Cause Marketing The Human Side of

As a Tool Business and Marketing
Promotion of Social Visible Efforts and Invisible 46
Responsibility .............. ......10 Benefits ........................... 52 Richard M Earle
Social Cause Marketing Motivations for Corporate

The CSR Responsibility of B-
Citizenship
Schools ............................ 17 ........................................ 59
The Noble and Necessary PERSPECTIVE

Job of a Manager The Moral of the
Keys to Great Performance
Moment…
68
Management .................... 20 Social-Cause Marketing .... 51 Tapan Mitra
Cause Marketing LEADERSHIP

A Historical and Critical Women Leaders
Perspective ..................... 34 What Makes Them Features
Successful ....................... 75
Platform ................................. 3
Surprising Facts About Quotes .................................. 4
Prototypes
Protracted Innovation... ..... 39 Executive Brief ....................... 6

EXECUTIVE NEWS
Voltas Resorts to Cause Marketing with digital agency claims that banner and video ads received a
Click Through Rate (CTR) of 1.2% and 5% respectively during
Jagmag Desh Mera the initial stage of the campaign. It also claims that on an aver-
Tata-owned Voltas AC has extended its positioning of en- age, the campaign has clocked about 0.77% average CTR.
ergy efficient air conditioners to cause related marketing. It The company plans to launch some below-the-line ac-
is running a campaign, titled Jagmag Desh Mera, aimed at tivities across eight metros and Tier II towns in the coming
encouraging consumers to donate a part of the money, days to encourage consumers to donate towards the cause. It
which they save by using power saving Voltas air condition- will also roll out a radio campaign on Big FM soon.
ers, to support an initiative called Lighting a Billion Lives of Is the advertising working for Voltas? Bakshi says, ìWe
The Energy and Resources Institute (TERI). have seen a growth of 30% in sales during April and May
Lighting a Billion Lives is targeted at bringing light into 2009, as compared to sales in these months in 2008.î
the lives of one billion rural people by replacing their kero- Source: http://digital.afaqs.com/perl/digital/news/story.html?sid=24189
sene and paraffin lanterns with solar lighting devices. Voltas
has tied up with TERI to support this initiative and the com- Cause Marketing: Altruism or Greed?
pany has committed to light up 10 villages in 2009.
ìCause marketing, in which firms donate part of the pro-
On the idea behind opting for cause related marketing,
ceeds from sales of certain products to a specified cause, is
Satbir Singh, Chief Creative Officer, Euro RSCG India, tells
now a strategy adopted by hundreds of firms to increase
afaqs! ìVoltas AC is positioned as ëIndia ka ACí, with the star-
sales for a wide variety of products, from coffee to cars,î said
rating which can save about Rs. 10,000 per annum. It helps
Aradhna Krishna, the Winkelman Professor of Retail Mar-
consumers save an enormous amount which, if donated, can
keting at Michiganís Ross School of Business. ìBut it is often
help TERI to light up various homes in India.î Euro RSCG
associated with price increases, as well.î
India has conceptualized the creative part of the campaign.
Enabling consumers to participate or donate directly to- A few well-known examples of cause marketing include
wards the initiative is one objective of the campaign. The Project Red, which encompasses several companies such as
other aim is to push sales, for which the company has com- the Gap, Motorola, Apple, Converse, Dell, Microsoft, Ameri-
mitted to contribute a part of the revenue earned on the sale can Express and others to raise money for the Global Fund to
of each air conditioner to TERI. fight AIDS, tuberculosis and malaria; 3Mís Post-It Super
So how is Voltas creating awareness about the Jagmag Sticky Notes imprinted with pink ribbons to help fund cancer
Desh Mera activity? The company is already using TV, print research and treatment; and Snappleís bottled water sales to
and outdoor advertising since April 2009 to inform the con- help build playgrounds in poor communities.
sumers, and online advertising to get their responses. In a new study forthcoming in Management Science,
The Voltas AC TV commercial is running across various Krishna and Uday Rajan, an associate professor of finance at
channels such as NDTV 24x7, Aaj Tak, CNBC, Times Now, Ross, found that cause marketing can increase sales, but can
Discovery and National Geographic. Its print also raise prices of the cause-related product, as
ads are appearing in The Times of India, well as of other products that the company sells.
Hindustan Times and The Hindu newspapers One underlying reason for the price increase that
across India. Krishna and Rajan identify is the additional ben-
Pradeep Bakshi, Vice-President, Voltas AC, efit that consumers get from buying a cause-re-
says, ìWe are spending about Rs. 25 cr on adver- lated product. Consumers feel good about the
tising in this financial year, majority of which firm selling the product, and also about them-
will be spent in the summer season.î The com- selves when they purchase such a product. Fur-
pany is routing about 50% and 25% of its adver- ther, consumers can even feel good about buying
tising budget to TV and print ads respectively. It a different product from the firm, one that is not
is spending about 10% of its advertising bud- related to a cause.
get on the Internet, which is much higher than the 2-3% Itís this spillover effect to a companyís other
spent by the company till the last financial year. products that can make cause marketing worthwhile, the re-
ìVoltas is using banner, video and search marketing on searchers say. In fact, even if a firm is unable to increase the
the Internet to build hype and interactivity around Jagmag price of a cause-related product enough to compensate for
Desh Mera,î says Kushal Sanghvi, Managing Director, Media the donated money or if it simply ties a low-selling product
Contacts, the digital arm of Havas Media, which is managing to cause marketing, it can still increase its profits ñ as long as
the online part of the campaign. The banner ads redirect con- consumers feel good about buying the companyís other
sumers to a webpage where they can submit their details in products. Moreover, firms that raise prices on both cause-
order to get contacted by the company for the cause. related products and other non-cause products earn higher
About 24 crore impressions, including banner and video profits than if they donít participate in cause marketing at all.
ads, are already being served on websites such as Yahoo!, In addition, companies will never place their entire portfolio
Rediff, MSN, Sify and NDTV.com in the month of May. The or product line in a social cause campaign. ìFirms can use

EXECUTIVE NEWS
cause marketing to increase prices and profits, but should be company) whereas CRM programs are directly linked to
aware of the implications of placing different products on product brands. As product brands have a continuous
cause marketing,î Rajan said. ìFor public policy officials and pipeline of consumer communication (as compared to cor-
consumers who may believe that cause-marketing firms are porate brands), the equity rub off on the brand is tangible
more caring firms and are genuinely interested in helping and immediate. P&Gíís experience in cause related market-
others, it may be insightful to understand that cause marketing is substantial.
ing also allows firms to increase their prices and profits.î The most effective CRM programs are able to build the
Source: http://www.physorg.com brand and impact the chosen cause in equal measure.
There are 4 key principles ñ the 4Cs of CRM ñ that are fun-
damental to an effective CRM program.
To Stay Relevant and Entrenched, Brands 1. The Cause: Identifying the right cause is the first and
Must Act as Social Anchors: Shantanu the most critical step. The key here is that the chosen cause
should appeal to your target consumers. Before we
Khosla, MD, P&G India launched ShikshaóP&Gís signature cause in India that
Over the long course of consumer history, different factors have helps educate underprivileged children via contribution of
weighed in on the relationship between brands, consumers, sales proceeds of our brandsówe conducted extensive
and society. For most part, brands have focused primarily on consumer research that established ìChildrenís Educationî
the consumer, relegating societal linkages to the periphery. In was top of mind for our consumers (across multiple
the 1960s, 1970s and 1980s this was appropriate as consumers brands). Now in its 5th year, Shiksha continues to inspire
had no real access to what was happening in the world or what consumers and has become a national movement that has
issues were shaping the future and how brands they purchased improved the lives of 87,000 children.
were involved. Accordingly, the purchases made at the store 2. The Collaboration: CRM programs are by definition
had no connection, in their mind, to anything else taking place a collaborative process. It is collaboration between cause
in the broader society. Cable television, 24x7 news media and and marketing.. While we as manufacturers are the experts
the Internet has changed this paradigm. on marketing, we need to have the right partner for execut-
Consumers became increasingly conscious of the linking the cause element.
ages between the issues that face society and their consump- Choosing the right collaborator for your cause is impor-
tion practices. They worried that rain forests were being de- tant for 3 key reasons. These are credibility for the chosen
pleted, children were being left uneducated, oil spills were cause, consumer confidence in implementing the program
killing marine life, millions were dying of cancer and HIV on ground and endorsement of your brand. One of the most
AIDS, children in Africa did not have access to basic medi- successful CRM programs run by P&G is a partnership be-
cines and a myriad other issues. At the same time, lifestyles tween Pampers and Unicef. Here for every pack of Pampers
became more hectic, time more precious, and personal re- that a consumer buys, we contribute 1 tetanus vaccine to
sources limited. developing countries.
There seemed to be no resolution to this di- 3. The Commitment: Having narrowed
chotomy of ëI careí and ëI canít do anything down on the right cause and right collaborator,
about ití. This ëconsumer needí to feel involved to really reap the benefits of the program,
and yet not being able to, defined an important brands should commit to building the program
gap and, therefore, an opportunity for brands to year on year. In India, with Shiksha, we have
act as a social anchor; enter Cause Related Mar- stayed committed to educating underprivileged
keting (CRM). Essentially, CRM is an enabling children for 5 years now and I can confidently
mechanism for consumers to participate and say that we will continue to do so.
engage with their environment within their ex- 4. The Campaign: The difference that we
isting means. It is a win-win arrangement be- can make to the cause as marketers is by bring-
tween the enabler and the enabled. It is important to note ing the same rigour that goes into building our brands in
that CRM is not CSR or corporate philanthropy. building the cause. For Shiksha, like for any other P&G
In fact, it is distinct in 3 important ways: brand, we have a multifunctional team that looks into each
1. CSR is focused on creating a show-and-tell of the cor- element including creating and engaging ATL and BTL pro-
porate conscience, while CRM is all about consumer con- grams, designing effective in-store communication, creat-
science. It is therefore more inclusive (not what ëIí am doing ing mnemonics like brand characters etc.
but what ëweí can do). In an integrated society where brands have become an
2. CSR is dependent on corporate largesse while CRM is expression of both the individual and society, it is critical
driven by consumer participation. This has two implica- that we take a broader view of how we as marketers re-
tions. One, the cause has to resonate with consumers and spond. Providing not just superior products but social an-
two, it is more sustainable. chorage via genuine cause marketing can truly elevate your
3. CSR programs are linked to the corporate brand (the brand to the next levels.
Source:http://economictimes.indiatimes.com
Local Impact Marketing
Taking the Brand Experience to the Customer
Local impact marketing is a

grassroots, 'experiential'
technique that uses local-
ized tactics to tap into cus-
tomers' senses and create a
more personal, longer-last-
ing brand experience. It's no
longer just for cash-strapped
start-upsóit's the fastest
growing discipline in busi-
ness.
Source: www.atkearney.com
Next Generation Medical Management

Strategic Responce for Suppliers and
Providers
Over the last few

years,health insurers in
the United States have
shifted their competitive
focus,moving from what
we call a transaction
advantage to a
transformation advantage.
By competing on the basis
of transcation efficiency
and striving for greater
scale, health insurers have
been seeking to drive
down administrative
costs, increase market share,and improve their
negotiating position with providers. Although this
approach has generally worked,returns are beginning
to decline. As insurers get larger,they find it harder to
continue to increase scale.At the same time,
differences in reimbursement rates across providers
are narrowing.
Source: The Boston Consulting Group
Source: Morgan Stanley
Reference # 03M-2009-09-01-10

IOC DELHI

As a Tool
Promotion of Social Responsibility
The Basic Goals of Society and
Happiness is very essential for the society’s well-being (WB), the Role of Business Activities
but creativity and social responsibility (SR) provide more to the We must be aware of the role and
place of individuals, economic (sub-)
happiness quotient of the individuals, as the latter are based on system and human society within the
ethics of interdependence of human beings. Creative complex whole, called Planet Earth.
cooperation is necessary for a requisitely holistic society. The Individuals are part of human society,
a part of Earth, dependent on its (natu-
article emphasizes that marketers can contribute to successful
ral) equilibrium, though they often act
SR management by bundling various SR initiatives and to the detriment of other individuals,
expanding their focus beyond customers to include other groups, organizations, and natural re-
stakeholders. sources, which also form part of
Mother Earth. The earth has a rather
closed system with a low renewal ca-
pacity. Excessive exploitation of the
N
owadays, humankind face emergence of these problems, but are natureóall in the name of progress,
complex consequences of only a tool in the hands of humans for but comprehended one-sidedly for
many one-sided actions and implementation of their personal/col- short-term benefitsóhas proved detri-
seek solutions to reduce them. The lective goals. In this article we will dis- mental to the very existence of hu-
toughest problems include pollution cuss: What are humansí basic goals? mankind. Humans find their eco-
of the natural environment, climate Are companies just humansí tools? nomic (sub-)system too significant
change, limited natural resources, What should be the basic principles of and allow it to influence them too
growing stress, social differences, and socially-responsible (business) activ- much, which puts it above the entire
alienation among humans. Compa- ity? And what should be the role of human society making it dictate the
nies are largely responsible for the marketing? goals of human society (Chomsky,
2005; Korten, 2006).
The socioeconomic development
has facilitated humansí survival and
increased the quality of their physical
existence in addition to making busi-
ness the central point of human activi-
ties. The economic growth, Gross Do-
mestic Product (GDP), profits, etc., are
the main measures of success of the
economic activities which have not
been Requisitely Holistic (RH). Hu-
mans are not merely materialistic be-
ings and they cannot live in dishar-
mony with nature. The quality of life
cannot be measured with economic
measures alone. Besides, business ac-
tivities match rules of the establish-
ment and authorities that donít match
the laws of nature. Nature always
maintains an equilibrium by self-bal-
Social Cause Marketing As a Tool
ancing, self-adjusting, and self-cleans- ciency and responsibility should be dent. This explains some essential
ing (Schumacher, 1989, 156); it is not fulfilled (Hornung, 2006). causes of socioeconomic and environ-
inclined toward fostering perpetual, SDRN1 (2006) says that one should mental problems prevailing in the so-
one-sided growth of humans alone. distinguish between objective and ciety. Human beings consider them-
The long-term survival of humankind subjective WB. Objective WB covers selves independent from other sub-
(and not only humankind) is endan- material and social circumstances jects (and nature) and, therefore, forget
gered, because goals of economic (sub) with influence on individualís per- about the ubiquitous interdepen-
system cause disequilibrium of Earth sonal objective WB, including the fol- dence. Therefore, humans act rather
and hinder the Earthís basic existential lowing dimensions (McAllister, 2005, one-sidedly and cause unpredictable
needs. This is the byproduct of the ab- 9): Material, physical, social and emo- and often undesirable consequences.
sence of Social Responsibility [SR] and tional WB, development and activity. Thus, the basic goals of society
gives rise to a situation wherein the fi- On the other hand, subjective WB should be: Humans should strive for
nancial profits are used to alleviate the stems from individualís perception of an RH quality of life (objective and
ëside effectsí of economic activities. objective WB (Arthaud-Day, 2005; subjective WB) and human solidarity
Possible solutions lie in more SR McAllister, 2005). Perception in turn, (based on ethics of interdependence),
in business, based on RH manage- depends on individualís Subjective simultaneously considering ecological
ment of the basic goals of society. Ev- Starting Points [SSP], which include sensitivity of natural environment, its
eryone should contribute towards the knowledge, emotions, mentality and constraints and laws of nature. This
realization of SR initiatives and goals values [Mulej, 2000, 88]. Therefore, a goal demands reconciliation of the eco-
based on the strengthening of posi- high objective WB does not necessarily nomic goals with the ecological, psy-
tive and suppression of negative in- make a high subjective WB. Dienerís chological and sociological viewpoints
fluences on society and nature. What and Seligmanís (2004, 25) partial for- as an essential part of humansí values.
could these goals be? mula for high WB includes: Living in a An RH, SR action should therefore
The far Eastern philosophy in- democratic and stable society; provid- work as follows:
cludes attaining happiness and avoiding material resources to meet needs; Increasing social and personal ob-
ance of suffering as the individualsí having supportive friends and family; jective WB;
main goals. Psychologists, sociologists having rewarding and engaging work Cause prevention of negative and
and some economists indicate that the and an adequate income; being reason- strengthening of positive influence
essential goal of humansí activities ably healthy and having medical treat- on natural and social environment;
should be a RH personal and social ment available for all kinds of ailments; and
Well-Being (WB). Satisfaction with having important goals related to oneís Cause positive influence on human
oneís own standard of living, health, values; and a philosophy or religion beingsí SSP to achieve RH behavior,
achievements, personal relationships, that provides guidance, purpose and thus strengthening their subjective
feeling of security and affiliation to so- meaning to oneís life. WB. (Exhibit I)
ciety leads to WB. The following fac- Another essential feature that is of Influence of SR in SSP is crucial.
tors should be provided to ensure so- high significance in achieving WB is SSP influence oneís perception of ob-
cial WB: Material basis for good life, the convergence of philosophical con- jective WB and consequently oneís
good health, good social relations, se- siderations about spirituality with dis- willingness for (creative) action and,
curity and freedom of choice and ac- coveries in natural and sociological therefore, (non-)creation of social ob-
tion (Stutz, 2006, 11). The essential sciences (Bell, Morse, 2005; Khisty, jective WB. The latter became a prob-
human goal is happiness; for good 2006; Schumacher, 1989; Senge, lem, above all in economically most
WB, material, information, psycho- 2004). They state that interconnected- developed societies. We (Mulej,
logical security needs, needs for free- ness between all subjects (at least in Prosenak, 2007) called attention to it
dom and action, adaptability, effi- energy terms) makes them interdepen- with our adaptation of Porterís model
of evolution of competitiveness (after
Brglez, 1999, 22-23) (See Exhibit II).
Dr. Matja• Mulej, is a retired Professor of Systems and Innovation Theory, at the University of Maribor
Porter pictures evolution of bases
in Maribor, Slovenia. He authored the Dialectical Systems Theory and the Model of Innovative Business
of competitiveness (without mention-
for the transitional economies and societies. He has published more than 1,200 articles, papers and
ing culture) all the way to phase 4, Af-
books in several countries. He is a Visiting Professor and a Frequent Speaker at several foreign
universities. As Speaker and Consultant on application of his USOMID methodology he has associated
fluence. Then the economic laws on
and worked with companies in several countries. He has also served as Dean and Vice- Rector at meeting needs with scarce resources
Maribor University. He is a member of four international academies of sciences and heads the no longer fit. This kills human beingsí
International Federation for Systems Research with 37 member associations from around the world. ambition to create something that they
Damijan Prosenak, is an Entrepreneur who obtained his Bachelors Degree in Electrical Engineering
aspire to have. From economic view-
and Computer Science and Masters in Business Administration from Maribor University. His areas of
point, one should therefore enter the
research interests are innovation management, marketing, networking and social responsibility and innovation phase as soon as possible
their requisitely holistic application in business and other fields. 1
Sustainable Development Research Network.

CYGNUS 01

and stay there as long as possible . But 2

terial and social status, image, etc.). matching with RH in everyday busi-
this neither matches with RH regard- Besides, orientation towards inner ness activities. They should contrib-
ing the above problems, nor realizes values increases the motivation for the ute to the fulfillment of the basic soci-
the societyís basic goals. realization of oneís personal goals. etal goals as follows:
For instance, constraints of natural The innovation phase unavoid- Increasing objective WB by creation
environment and principles of hu- ably makes affluence, history says. of products, contributing to happi-
man solidarity are overseen. And in Humankind should therefore attain a ness;
terms of individualsí perception of new, fifth phase, linking creativity/ Positive (or the least possible nega-
quality of life, we ask: What dimin- innovativeness, SR, RH, ethics of in- tive) influence on social and natural
ishes the ambition to achieve more terdependence, shorter working time environments;
and live better in the affluence phase and WB in behavior towards ëthe Positive influence on an individualís
(from materialistic viewpoints)? In causeí ñ to help our shared society at- SSP (both inside and outside the
this regard, Diener and Seligman, and tain basic goals. It should also simulta- company).
SDRN establish that satisfaction with neously consider the ubiquitous The term ëPositiveí in this context re-
oneís life grows with growth of GDP, interconnectedness and interdepen- fers to all the forces that strengthen long-
but only to a certain level of GDP; af- dence, including constraints of the term objective WB, ethics of interdepen-
terwards the connection disappears natural environment. Thus, people dence and RH.
(Diener, Seligman, 2004, 6; SDRN, must unite and work together for long- The human and natural influences
2005, 12). At this point, influence of term survival and betterment of hu- on a personís SSP are very important
certain other factors on the perception mankind realizing their aspirations for for their impact on and related
of objective WB becomes stronger and success through their companies (See strengthening of societyís objective
more important. This proves the im- Exhibit III). WB. The influence on oneís SSP has
portance of influence on oneís SSP an indirect influence on oneís con-
and consequently on oneís perception SR Business Activities Ful- sumption of goods. This increases the
of objective WB and motivation for filling the Basic Societal Goals scarcity of certain natural resources
creative work. Sheldon (2001) noticed Findings presented so far share and aggravates the problem of environ-
a stronger positive connection be- thoughts on the role of business activi- mental protection. Companies using
tween WB and orientation toward in- ties in human society and on the their marketing tools (for their business
ner rather than outer values, (i.e., ma- meaning and use of principles of SR goals) to create artificial needs and to
accordingly influence consumersí SSP
actually cause threefold harm to soci-
Exhibit I ety and nature: They needlessly use
Connection Between Social Responsibility Actions and Well-Being scarce resources; they increase envi-
ronmental pollution; and they create
stress within individuals who wish to
Socially Responsible Action satisfy their artificial needs. In order to
put these problems at bay, marketing
tools should be used for discovering
the existent and predicting the future
Well-being Environment needs (to increase objective WB) and
(social and personal) (social and natural) for active inclusion of interested indi-
viduals in value creation (Prahalad,
Ramaswamy, 2004). Thus, human be-
Subjective
ings can reduce the production of un-
Objective well-being Individuals’ subjective starting points
well-being (knowledge, emotions, mentality
necessary products and use less of
● Physical well-being, ● Happiness and values) scarce resources. Such approach to
● Material well-being,
● Social well-being,
● Life satisfaction business action would have a positive
● Emotional well-being, influence on the creation of objective
● Development and activity.
Observation (perception of needs and
WB and the real needs would be ful-
possibilities) filled. Simultaneously, a positive influ-
ence on the perception of subjective WB
Decision making (selection of of consumers and employees would be
preferred needs and possibilities) achieved, which in turn, would contrib-
ute towards increasing the motivation
Definition of (requisitely holistic) goals 2
The other solution (commonly used today) is to
create artificial needs with use (or abuse) of mar-
keting tools, thus, increasing demand for mate-
Acting for fulfillment of defined goals rial goods. But this leads to consumerism, in-
cluding all its unfavorable consequences too.

into production and profit. However,

Exhibit II
there has been a plea to add a third el-
Porter’s Phases of Evolution of Competitiveness (Adapted)
ement, i.e., ësocietyís WBí to the basic
Phase Economic Basis For Development Resulting Culture elements of marketingócustomer sat-
1. Natural factors Natural resources and cheap labor, Scarcity and solidarity, collectivism, isfaction and profitability. The Soci-
providing for a rather poor life for tradition rather than innovation etal Marketing [SM] concept calls on
millennia marketers to meet the needs of the tar-
2. Investment in Foreign investment in the areas of Growing differences, local get audience in ways that will enhance
modern technology economic development; hardly/ competition, individualism, ambition to
poor competitive in inter-national have more and be rich
the WB of customers and society as a
markets whole while fulfilling the objectives of
3. Innovation based on Nations live on their own progress Growing differences and standard of the organization (Bednall, Kanuk,
local knowledge and attain a better standard of living living, global competition, ethics of 1997; Kotler, 2000; in: Chattananon,
by international competitiveness interdependence, social responsibility 2007, 232). Thus, SM invites marketers
and ambition to create to include social and ethical consider-
4. Affluence People finally become rich, which Complacency, no more ambition, ations in their marketing practices.
makes them happy in material WB consumerism; what is quality, then? The concern about ethics in market-
as a blind alley
ing is closely related to the issue of SR,
making the notion of SM find its way into
for creative work, and consequently at- synergetic effects. In many organiza- common business language. Consider-
taining possible success. tions, both public and private, cul- ations of (un)ethical marketing have pri-
The key factors of an SR business, ture does not support creation and marily tackled evaluations of specific
therefore, include: cooperation. People must be given a marketing activities such as targeting, ad-
RH understanding of the world chance to engage in (co-)creative (co- vertising and pricing, information asym-
and oneís role in it; )operation, but in a manner that would metry, differentiation of customers by
Enhancing of ethics of interdepen- be beneficial to society at large. A better value, power differences, etc., as opposed
dence; contact between companies and users to wider macro questions of morality and
Action on the basis of creation, co- of their products must be enabled as legitimacy of marketing itself (Crane,
operation, and innovation aimed the latter know best what they wish Desmond, 2002, 551). Empirical evi-
at finding and realizing solutions from a product; it should include the dence attempting specifically to locate
for crucial and real human prob- phase of future-needs detection and corporate practices directly within the
lems; designing of related potential solutions. discourse of SM is limited, but literature
Consideration of the complexity of Hence, they must be involved rather on green marketing, cause-related mar-
oneís own and that of synergetic actively in the invention-innovation keting and ethical marketing are burgeon-
influences on oneís natural and so- process to attain the biggest possible ing (Crane, Desmond, 2002, 563).
cial environments and their con- benefit for both the customers and soci- Marketers can contribute to success-
straints. ety at large, at the cost of the smallest ful SR management by bundling various
Business strategies should be possible destructive impact on the en- SR initiatives and expanding their focus
planned and executed within the vironment. The open innovation con- beyond customers to include other
above guidelines. RH/SR culture in cept implies peopleís role much better stakeholders. Following this approach,
both companies as well as society than the closed innovation concept the importance of SM programs gradu-
should be based on ethics of interde- (Chesbrough, 2006). ally increases (Chattananon, 2007, 230).
pendence and on individualsí willing- Among other broader societal benefits,
ness to activate their creative potential The Role of Marketing the use of SM has also proven to create
for their own benefit as well as for the Marketing should also adapt to this competitive advantage for companies
benefit of the society at large. open innovation concept. The domi- in building brand awareness and cred-
But how can this be achieved? nant model of marketing has so far ibility, enhancing corporate image and
Oneís desire for knowledge, RH per- used the notion of customer sover- stimulating customersí purchase in-
sonal development, openness and em- eignty. It made marketing a technical tentions by creating an emotional
pathy for fellow human beings rein- process rather than a moral process, bond with them. Of course, there are
force oneís RH understanding of the aimed to create and translate demand many problems involved with the
world, relationships and interdepen-
dence. Everyone can do it, provided Exhibit III
one wishes so. Human beings possess The New, Fifth Phase of Evolution of Competitiveness
creativity that often remains tacit and Phase Economic Basis For Development Resulting Culture
unused, or is used for leisure time avo- Holistic creation Material wealth suffices; effor ts Ethics of interdependence and SR,
cations or for oneís own benefit only. and SR aimed at spiritual wealth, and ambition to create, diminish social
In addition, human beings lack inter- healthy natural and social differences to those caused by
disciplinary cooperation enabling environment as RH, WB creation, including innovation

ONGC

adoption of SM as a business goal. marketing process. They can improve the society is gradually becoming a
They include the fact that SM insists the understanding of the fact that a sup- precondition of survival, rather than
on the role of the individual moral plier sells the experiences of benefit an act of charity or modesty.
agent, which veils the social context along with the product. Hence, compa- The laws of RH behavior and SR
and in particular the imbalance in size nies must consider the attributes of the (of everybody, not just companies)
and power relations between indi- experience including the event, its con- go hand in hand. One should listen
viduals and corporations. Another text, personal engagement in it, and the to all by giving up all kinds of preju-
problem is that managers are mainly personally ascribed importance to it. dices. This is an essential precondi-
called upon to adopt SR behavior for These insights may reach beyond tion for oneís RH action, which
the same reasons for which they are the usual marketing and R&D meth- would consequently strengthen the
called upon to adopt the ëclassicalí ods. They are crucial for the personal- awareness regarding the ethics of in-
marketing concept, i.e., profitability, ization of experience and the creation terdependence and, therefore, con-
which is the measure of ëself-interestí. of the desired experience of every in- tribute to RH, SSP of an individual.
The adoption of SM must, thus, dividual customer. The experience of
equally result in the adoption of moral personalization is realizable on the ba- Some Conclusions
behavior of the company, which signi- sis of individualís cooperation. There- Humankind is quickly reaching the
fies that action in the interests of oth- fore, companies should create proper phase of affluence, if you go by the eco-
ers is action in its own interest. It environment for experiencing person- nomic data alone. Happiness is very es-
helps in the longer term, at least, the alization, which is a part of experience sential for the societyís WB, but creativ-
SR factor, too. Such thinking leads network of multiple firms (suppliers ity and SR provide more to the happi-
closer to RH (Hrast et al., 2006, 2007, included) and consumer communities ness quotient of the individuals, as the
2008, 2009, etc.). (Prahalad, Ramaswamy, 2004, 85). latter are based on ethics of interdepen-
Therefore, RH and sincere commu- In addition, the role of marketing dence of human beings. Creative coop-
nication between companies and (po- under ëopen innovationí concept and eration is necessary for an RH society.
tential) users of their products and all co-creation should not be limited to de- Traditional marketing methods do
not provide enough information essen-
tial for building an RH society. SR and
The basic goals of society should be: Humans should strive for an RH perception, thinking, decision mak-
RH quality of life (objective and subjective WB) and human ing and action are unavoidable for RH
solidarity (based on ethics of interdependence), simultaneously success (positive influence on WB, envi-
ronment and humansí SSP). Marketing
considering ecological sensitivity of natural environment, its
must adapt its methods and insights to
constraints and laws of nature meet new challenges. But the answer to
making more substantive progress to-
other members of society who are im- tecting and forecasting of (potential) wards RH does not lie with marketers
pacted by the effects of procurement, needs alone. It should also include alone, since the marketís current flaws
production, selling and other business search for the most innovative suppli- make marketing incapable of delivering
functions in relation to the products, is ers and customers, who would strive at companyís and societyís WB at the same
needed for RH marketing relations. Con- adapting the given supply to their time. The market must operate within a
tent of the communication must be RH short-term and long-term needs. Such society in which WB is adopted as a
in order to strengthen the awareness of persons/firms should be actively in- public policy goal, rather than an aim
ubiquitous interdependence, thus, con- cluded in the invention-innovation that is actively pursued through policy
tributing to more holistic and less artifi- process. They can be crucial co-cre- implementation. The longer we take to
cial/fictitious solutions to the problems. ators of new supplies as well as crucial address the issue, the greater the disrup-
Interested individuals should be opinion leaders in making the diffusion tion and effort will be.
given an open access to relevant infor- of novelties easier with more RH and The sooner a substantive progress
mation needed for cooperation in the SR, thus making it more successful. is made in this direction, the more
open innovation process. A platform It must be stressed that in the likely it is that the story will reach a
enabling global connections and open innovation phase, marketing, happy ending, i.e., we will be living on
(co-)creative (co-)operation in collabo- as a teaching or informing tool, must an Earth wherein individuals are
rative interest-based networks is support transparency in the opera- steadfast in their RH perception,
needed too (Prosenak, Mulej, 2007). tions of the enterprise. This may in- thinking, decision making and action
Companies can take insights from clude both strong and weak points. based on SR.
anthropologists, ethnologists and simi- Openness creates trust, which in
lar social scientists while innovating the turn, creates cooperation and co-cre-
ation. Weak points are increasingly © 2009 Damijan Prosenak and
difficult to hide, today3. Thus, the Dr. Matjaû Mulej. All Rights Reserved.
3
Social networking, yellow press, blogging,
competitors, etc., tend to discover and publi- support of SR to meet the RH goals of Reference # 03M-2009-09-02-01
cize much more than ever before.

The CSR Responsibility of B-Schools
ard Watts, defines CSR as the con-
Social Cause Marketing being a part of CSR can be an tinuing commitment by businesses to
behave ethically and contribute to the
acceptable and relevant area for B-Schools to contribute to economic development while im-
and experiment with. The involvement of B-Schools would proving the quality of life of the
enrich the experience of students in learning the concept, workforce and their families as well
as of the local community and society
leading to lasting impact on their career. Above all, the world
at large. CSR is all about capacity
would be a better place to live in with SCM in place and building for sustainable livelihoods.
B-Schools showing keen and genuine interest in it. Early CSR models were initiated in
the 1960s. It showed the ësocialí as-
pect of CSR as responsibilities refer-
C
harity begins at home. Corpo- causes cannot be underestimated. ring directly above and beyond eco-
rate Social Responsibility B-Schools in India have been suc- nomic and legal obligations. Philip
(CSR) and Social-Cause Mar- cessful in training young managers to Kotler in his work Corporate Social
keting (SCM) begin at B-Schools, as develop qualities the right attitude, Responsibility: Doing the Most Good
part of theoretical learning. The fu- excellent decision-making ability effor Your Company and Your Cause
ture role of B-Schools in CSR should fective rational thinking, meticulous does a terrific job of describing the
involve offering training sessions to organizing capability and the like. B- range of corporate social initiatives
budding managers in the form of schools generally strive to provide and suggests best practices for choos-
practice activities of SCM. If the fu- education on whatever is considered ing, implementing and evaluating
ture executives are to involve them- as important for business graduates them.
selves in CSR activities, they must as to succeed and excel. SCM can be considered as part of
well be trained for the same. At B- This is the era of organized busi- CSR as it is wider in scope and in-
Schools young graduates are moul- ness. Business executives have a cludes Social Marketing (SM), Cause
ded, mentored, trained, tutored and greater say on how a society can be Marketing (CM) and other related ac-
developed over a period of time to be improved or made better. Executives tivities. SM is viewed as the market-
executives. During this period they have all necessary resources at their ing of a particular issue of significant
gurgle a bunch of concepts, learn a se- disposal to impact the society posi- social importance using traditional
ries of theories, read piles of books, tively and coupled with their marketing techniques such as adver-
discuss on hundreds of cases, memo- strengths, need to initiate and involve tising, public relations, event market-
rize thousands of PowerPoint slides themselves in social development ing and direct marketing. Usually
for the examinations, and debate over programs. Business executives must Non-Government Organizations
a millions of issues. Yet the practical contribute their mite to the social (NGOs) undertake SM by themselves
learning they gather through intern- causes of the society. or through professional communica-
ships, other exposures to various in- tion firms. Cause marketing involves
stitutions and the project method of Corporate Social pairing of corporates and NGOs
learning leaves lasting impressions Responsibility and Social- where the coporate provides the fi-
on their minds. Cause Marketing nancial resources to promote a par-
The future managers who are CSR is about giving back to the soci- ticular cause and hopes to benefit
trained to be effective and efficient, ety a part of what you have gained from the favorable association with
put to practice most of the managerial from it. Businesses would take re- the cause. The cause marketing ef-
learning picked up from the B- sponsibility for the impact of their ac- forts of corporates are often referred
Schools. The focus and thrust of the tivities on the environment, consum- to as image enhancement initiatives.
executivesí future career is initiated ers, employees, communities, and The NGO gains heightened exposure
at the B-School. Thus, the role of a B- stakeholders. The World Business and/or financial support for its cause.
School in inspiring, motivating and Council for Sustainable Development SCM is different from CSR, SM
nurturing young and powerful minds in its publication, Making Good Busi- and CM as CSR is a wider concept
to commit themselves to social ness Sense by Lord Holme and Rich- and SM and CM have two different
contexts to work from. While CSR is ous concern to the society and not take necessary efforts and use the fac-
inclusive of SM, CM and SCM, SM necessarily popular with the target ulty and student teams to put into
and CM are exclusive of each other. market. place SCM for MDG. India is a signa-
SCM is an intersection of SM and tory to the international agreement
CM, where the marketing initiatives Role of B-Schools on ending corruption. B-Schools can
are for a social cause and neednít nec- B-Schools have been established to work on a corruption-free Indian so-
essarily be from a NGO or Non-Profit provide the necessary education for ciety involving the faculty and stu-
Organization (NPO). CSR is purely managing the corporates that are in- dents.
society-oriented and is for the better- volved in catering to the needs and Climate change is a pressing issue
ment of the society which is carried comforts of the society. These schools for all nations of the world. Indian B-
out beyond legal and economic obli- train graduates who can allocate Schools can involve students and fac-
gations of businesses. The corporate scarce resources in equitable fashion ulty in practicing Social Cause Mar-
that involves in CSR is expected to on the most productive activities. B- keting. Environment conservation
carry it out with no derivative benefit Schools in the initial times had recog- and protection awareness is another
in return from CSR. SM is an effort of nized the value of holistic approach important issue B-Schools should
an NGO or NPO to promote a social of business management and the im- put a stake in.
cause. CM involves in paired efforts portance of society to the realm of
of a corporate and NGO/NPO where management. There is a wide range of How Can B-Schools Engage
both of them are involved expecting activities which business schools can in SCM
certain benefits. SCM is part of CSR, involve themselves in, in order to B-Schools have a responsibility to-
as SCM is only an element of CSR ini- propagate social causes and market wards the immediate society and the
tiatives. CSR involves HR, finance, them. It is the responsibility of a B- world at large. They know the issues
marketing, systems and operations, School to create an environment for they can address through SCM but
information system, and related ac- learning, training and practicing may wonder how they can execute
tivities whereas SCM involves only SCM. In order to provide the environ- SCM through the faculty and stu-
marketing activities focused on social ment and climate for conducive nur- dents. There are a few methods
causes. Today corporates establish turing of CSM, there must be gener- which would work out effectively
CSR units, arms, or bodies to extend ous resource availability for the stu- with active student contributions in
their support to the society as respondents and the faculty to practice and terms of creative ideas, and volun-
sible citizens of the society they be- experiment on SCM. The B-School teering for participation. Students
long to. SCM can be carried out by management has the responsibility of can organize rallies, marathons,
the CSR unit/arm/body of the corpo- being a role model in involving itself walkathons, etc., on the chosen is-
rate or it can be an exclusive subunit in SCM. sues. Organizing contests for school
of the marketing department. CSR in- children to promote awareness on
volves a wide range of activities that Potential SCM Issues the said issues, or conducting aware-
benefit employees and their families, There is no dearth of the issues B- ness workshops also would help. Fo-
the immediate neighborhood and the Schools can champion to take up rums like Young Indians, OISCA-In-
world with tangible outcomes while through SCM. The world at large and ternational, Junior Chamber Interna-
SCM activities may benefit all the tar- the immediate society are struggling tional, etc., being organized at the B-
get groups of CSR, but the results may to cope up with the issues that are School level exclusively for the stu-
not be tangible and measurable. causing pain and trouble to individu- dents will also provide an opportu-
als and society. B-Schools may focus nity for students to involve them-
SCM and Affinity on global issues with local presence. selves in SCM.
Marketing The United Nations Millennium De- SCM being a part of CSR can be an
Affinity marketing is a marketing velopment Goals (MDG) for which acceptable and relevant area for B-
strategy adopted by corporates to im- India is a signatory is a serious cause Schools to contribute and experiment
prove sales by enhancing their brand demanding the attention of all re- with. The involvement of B-Schools
image. Corporates identify causes or sponsible citizens. B-Schools should would enrich the experience of stu-
events popularly supported by their dents in learning the concept, leading
consumers and create a link with the to lasting impact on their career.
cause or event, by sponsoring or gen- Dr. Mercia Selva Malar is Professor, Banking Above all, the world would be a bet-
erating publicity for the cause. In af- and Finance, at SCMS-COCHIN, Kerala. Her ter place to live in with SCM in place
finity marketing the cause need not areas of interest include CSR, Microfinance, and B-Schools showing keen and
be a social one, it is a cause very Banking and Insurance. genuine interest in it.
popular and appealing to the target She has about 17 years of experience in
group. SCM differs from affinity mar- teaching and has published several articles © 2009 Mercia Selva Malar. All Rights Reserved.
keting in the fact that unlike the latter, in various journals and magazines.
SCM is around a cause that is of seri- Reference # 03M-2009-09-03-01

BOB

The Noble and Necessary
Job of a Manager
Keys to Great Performance
Management
or all of the McDonaldís restaurants in
When it comes to dramatically improving the US economy, the the US; a front-desk manager of a
most important person in making it happen is a business Courtyard by Marriott or the president
of Marriott International; or the man-
manager. Time is one fixed resource that all managers have. ager of a local retail store or the head of
Obviously the tighter money becomes, the harder it is for a Macyís.
manager to obtain all of the other resources he or she wants to The job is still the same, and it is
both a necessary and noble job to do. It
create value for other people.
is necessary because without it we
canít get our economy going again. It is
noble, which means possessing out-
W
hen it comes to dramatically come with different titles in different standing qualities, because managers
improving the US economy, industries and at different pay scales. are the ones who have to be capable of
the most important person Their labels include CEO, Vice-Presi- converting a collection of individual
is not the president of the US, a US sena- dent, Director, Chief Global Marketing inputs into organizational value for
tor, a congressman or congresswoman, Officer, Chief Technology Officer, front- customers that they will pay for.
or an economist. Each of those individu- line manager, department head, pur- Actually the most important per-
als is important, but none of them is the chasing manager, controller, and on sons are the tens of thousands of busi-
most important in terms of reviving our and on. All of these people are manag- ness managers across the US. Almost all
economy and generating long-term, sus- ers. And all of them play THE critical of these managers will never become
tainable success. The most important role in improving our economy. It known outside of their organizations
person in making that happen is a busi- doesnít matter whether a person is a and their families. The vast, vast major-
ness manager. Business managers manager of one McDonaldís restaurant ity of them will never become
multimillionaires, be seen on CNN, or
write a book. However, I guarantee you
they are the most important individuals
in moving our economy forward in the
future.
Long ago I decided that my lifeís
work is to try to assist managers to-
ward delivering great performances. A
great management performance is one
that converts available resources into
extraordinary value that generates sig-
nificant and sustainable improvement
in results for customers, for the organi-
zation, and for the communities in
which they operate.
A managerís resources include his
or her employees, facilities, equip-
ment, time, and money. Time is the
one fixed resource that all managers
have. Obviously the tighter money be-
The Noble and Necessary Job of a Manager
comes, the harder it is for a manager to over again, you will get yourself far a desired outcome in the form of a
obtain all of the other resources he or closer to where you want your foun- question, gather input, consider the
she wants to create value for other dation to be. Iíve always been im- alternatives, and then guide the group
people. Consequently, the worse the pressed by the ripple effect a man- to deliver on a clear action plan using
economy gets, the more important the ager has on other people when he or a collaborative approach.
role of the manager becomes. It is this she strengthens the foundation of Hare was a rising star. He became
skill of converting resources, even lim- his or her life. famous throughout the organization
ited resources, into greater value that for getting stuff done. Then one day
ultimately moves an economy for- Know Why You Do What employees and customers started
ward. You Do leaving the organization. Every time
Remember that passion comes from Hare had an idea he would send his
Keys to Great Management purpose, not the other way around. employees into motion immediately
Performance Why do you do what you do? What is to implement it. It didnít matter that
Over the past eleven years, Iíve landed your purpose beyond the paycheck? many of the ideas had no connection
on a variety of critical actions for man- Since you are unlikely to be paid a to earlier ideas. Hare kept pushing
agers to do to deliver a truly great man- kingís ransom or to become famous as new actions through the organiza-
agement performance. What follows is a manager, you need a purpose for tion faster and faster and faster.
not a complete list, but it is a good your work that can sustain you More employees and customers left.
place to start. through good and bad economic Within a few years, the numbers
times. were so dramatically down that Hare
Strengthen Your Once youíre clear about your pur- was let go.
Foundation First pose for doing the work you do, then Tortoise took over a few extremely
Get yourself right first. Whatever work with others to clarify the pur- poor-performing business units. In-
that means for you, I encourage you pose of the organization or work stead of rushing to make decisions, he
to do it. The vast majority of manage- group that you manage. Recently, I in- scheduled time to think. He brought
ment blunders Iíve witnessed can be terviewed Roy Spence and Haley together a group of about 15 people to
traced back to the manager being Rushing, authors of Itís Not What You discuss where the business was at,
overly tired, stressed out, out of Sell, Itís What You Stand For, which is where they wanted it to go, and how
shape, feeling guilty, or on the verge the best book Iíve ever read on the im- they could get there. Using a collabo-
of some other personal breakdown. portance of establishing an organiza- rative approach, the group steadily
Examine your own physical, mental, tional purpose that resonates with made improvements. After five con-
social, emotional, moral, and finan- both employees and customers. Click secutive years of great business perfor-
cial situations. If youíre a spiritual here to read my interview with Roy mances, Tortoise was promoted to an-
person, then throw that in as well. Is and Haley called ìA Conversation on other underperforming business unit.
your foundation where you want it Purpose: Insights on What Drives Ex- Same pattern: thinking time, group
to be? If not, what few practical traordinary Organizational Perfor- time with a collaborative approach,
things could you start with to im- manceî: http://www.thecoughlin- five years of great results, and another
prove your foundation? By making company.com/conversation_on_ promotion.
some progress and doing it over and purpose.html If you want to be a truly great man-
ager, take the hardest step in business.
Take the Hardest Step in Step back and think.
Dan Coughlin is a student and teacher of Business
practical processes to improve business The hardest step in business is to step Manage Talent, Donít
momentum. He has invested more than 3,000
back and think. Really think through Abandon It
hours on-site observing and advising executives
the desired outcomes, the various Business talent is the ability to help
and managers in more than 30 industries. He is
paths to make those outcomes a real- create value for customers that they
a business keynote speaker, management
ity, the planned activities necessary to will want to pay for and that will
consultant, and author of the new book, The
Management 500: A High-Octane Formula for
stick to the path youíve chosen, and so help the organization achieve its de-
Business (AMACOM 2009). If you want to read on. It is actually much easier to press sired goals. In the midst of all this
Chapter One from this new book, click here: forward with action than to step back letting go of employees that has hap-
http://www.thecoughlincompany. com/ and think through the ramifications. pened over the past year, be sure
The_Management_500_ch1.pdf. Dan’s clients Here is a real-life story of two se- youíre not saving short-term results
include Coca-Cola, Abbott, Toyota, Prudential, nior-level executives in a major corpo- only to ruin the long-term success of
Shell, Boeing, Marriott, McDonald’s, and the St. ration that Iíll call Hare and Tortoise. your business. Ultimately, you have
Louis Cardinals. He speaks on leadership, Hare was a driver-driver. If he had an to have talent in order to create more
branding, sales, and innovation. He can be idea, he would push it into action value for your customers. Youíre not
visited at: www.thecoughlincompany. com. throughout the organization immedi- going to make it all by yourself. Be
ately. Tortoiseís approach was to pose sure to keep as much of the real busi-
ness talent in your organization as some are illegal. You can simply take achievement and who then make
you possibly can. That is the ulti- what is not yours, or you can take what contributions to that field that are
mate resource you will be converting is available to you for the taking. The considered by peers to be both origi-
into value for customers in the fu- former is obviously stealing, and the nal and highly exemplary.î
ture. latter is where you have to decide on Iím not a big fan of the word ìge-
what you think is the right thing to do. I nius,î but I do think that definition
Steward, Donít Steal encourage you to ask yourself, ìAm I applies to great managers. They al-
Over the past 11 years Iíve written at being a good steward, or am I simply ways had the ability to become great
least one 1,500 word article each taking as much from the organization managers, they had the passion to stay
month as well as three 70,000-word as I possibly can?î Stealing is not al- the course long enough to hone their
books. So Iím up to something like ways crystal clear, and many times you craft as managers, and they applied
400,000 words on management effec- will have to decide for yourself their skills in ways that made an ex-
tiveness. But if I had to narrow my ad- whether youíre acting as a steward or a emplary difference for their customers
vice on how to be a great manager thief. If your goal is to be a long-term and organizations.
down to three words, they would be: great manager, I encourage you to stay You may or may not become fa-
steward, donít steal. on the side of stewardship every time. mous or fabulously wealthy as a busi-
In the Merriam-Webster Online My father passed away last week. ness manager, but always remember
Dictionary, stewardship means ìthe He was truly a great and humble per- that you perform the critically impor-
careful and responsible management of son. He and Mom taught me a great tant role in making our economy
something entrusted to oneís care.î In a deal about the concept of stewardship. strong and successful both over the
nutshell, thatís the job of a business They guided everything they had to short term and the long term.
manager. Think of your main job as help each of their six kids to do as well
stewarding resources in ways that will as we could do in whatever we were Great Performers are in the
enrich them and create more value for trying to do at that given moment. To Patience Industry
Shift your focus for the moment away
from the recession and other bad
news. In your mind, put a spotlight on
Great performers are patient beyond short-term results. They are the greatest performers youíve ever
known. Visualize them. Take it all in.
patient beyond great failures and great successes. They are patient Step back and look with a panoramic
beyond being laughed at or being given false praise view at how they got to where they
were able to deliver an amazing per-
formance. It doesnít matter their age
level or type of activity or industry or
customers. The greatest managers Iíve me, they were absolutely perfect ex- title. Just step back in awe and let their
ever witnessed embraced this concept amples of being great stewards. They performance teach you the lessons for
of stewardship, applied it skillfully, never stole the credit, the glory, or the your lifetime.
and always worked to improve at it. A riches from another person. They care- This is one of my favorite activi-
magnificent new book on the idea of fully and responsibly managed the re- ties. I just love, and have always loved,
being a great steward is Enough: True sources that were entrusted to them to studying extraordinary performers.
Measures of Money, Business, and Life raise children who hopefully are deliv- Iíve done it since I was eight years old.
by John Bogle. I encourage you to buy ering strong value to other people. Iím not nearly as interested in what
this book and really study it carefully. It life is like at the top of the mountain,
is a beautiful explanation of old-time Get Better but rather what happened on the way
values delivered by a person who has I havenít met every manager on the up the mountain. One of the reasons I
truly lived them. planet, but of the ones Iíve met Iíve do this is because for truly great per-
Of course, you want to, and you never seen anyone be a perfect man- formers there is no mountaintop,
should, be paid a reasonable fee for ager on day one. The very best man- there is only the next mountain to
guiding these resources to better re- agers Iíve ever seen simply started on climb. Over the past nearly forty years
sults. However, this is where the tricky the road as a manager, and then Iíve landed on a few common traits of
part comes in. What is a reasonable fee worked to get better each day. Hereís superior performers, and the most
for your efforts and how should you get an interesting quote from a new book common one, the one that every single
that fee? There are two ways to go about called, Genius 101: Creators, Leaders, truly great performer has mastered, is
it: earn them or steal them. Stealing is and Prodigies by Keith Simonton: patience.
on the other end of the management ef- ìGeniuses are those who have the in- Great performers are patient be-
fectiveness spectrum from steward- telligence, enthusiasm, and endur- yond short-term results. They are
ship. Stealing can come in a variety of ance to acquire the needed expertise patient beyond great failures and
forms of which some are legal and in a broadly valued domain of great successes. They are patient be-

GIC

yond being laughed at or being given This is the age-old story of success. involves discipline and tenacity of
false praise. They are patient beyond Maintain focus for at least five years purpose.î
being told they canít succeed and be- on one performance area, get a criti- To achieve greatness as a business
yond being told they are the greatest cally important break or two from an manager or executive requires sus-
in the world. They all simply con- unexpected source, and then continue tained, focused effort. In the end, itís
tinue to move forward regardless of to focus on improving your perfor- hard work combined with extraordi-
what other people say toward im- mance. This simple formula for great nary patience. Do you have it? Are
proving their performance in their performance has been demonstrated you patient enough to persevere
desired area. over and over, and has been written through amazing success and devas-
(If you want to read a far more in- about so many times that you would tating failure? This is what it takes to
depth explanation of this concept and think every person could apply it eas- perform at the very highest levels of
how it applies to business manage- ily. But, alas, that is not what happens. achievement.
ment, I encourage you to click here
and read Chapter One in my new Dale Earnhardt, Sr. Learn From Great Failures
book, The Management 500: http:// Last year I studied the history of auto Jim Collins, author of Good to Great
www.thecoughlincompany.com/ racing. One of the most intriguing sto- has a new book, How the Mighty Fall,
The_Management_500_ch1.pdf.) ries for me was the story of Dale that has an interesting premise. He
Earnhardt, Sr. In 1979, at the very old studied companies that were consid-
Nelle Lee and To Kill A age of twenty eight, he became a ered truly great for a long period of
Mockingbird rookie driver in the NASCAR Winston time and then experienced incredible
My brother, Kevin, gave me a remark- Cup Series, known as the Sprint Cup sustained failures. He wanted to find
ably powerful book recently called, Series today. He had spent ten years out what made successful companies
Mockingbird: A Portrait of Harper Lee looking for an opportunity to drive in fail. The first stage of failure is what he
by Charles Shields. Harper Lee wrote the Winston Cup Series, but no major called ìHubris Born of Success.î He
the book, To Kill A Mockingbird, in sponsor would support him. Then in wrote in the BusinessWeek May 29,
1960. It went on to become the best- 1979 Rod Osterlund believed in 2009 issue, ìStage 1 kicks in when
selling piece of literature of the 20th Earnhardt and gave him a chance and people become arrogant, regarding
Century and to date has sold more the money he needed. success virtually as an entitlement,
than thirty million copies. For this Dale Earnhardt, Sr. won the and they lose sight of the true underly-
book, Nelle Lee won the Pulitzer Prize Rookie-of-the-Year in 1979 and fol- ing factors that created success in the
and the Presidential Medal of Free- lowed that with the first win of his first place.î
dom. This book has been taught in seven Winston Cup Series Champi-
countless high schools and colleges onships in 1980. He went from a Check Yourself into a
and has affected an incredible number complete unknown to one of the big- 30-Day Gratification Detox
of lives with its core message of toler- gest brand names in his sport. He Center
ance and open-mindedness toward was patient through the very bad I think this idea of ìentitled successî
other people. Thatís a pretty high times and the very good times and can keep many individuals and
mountaintop to reach. constantly strove to raise his level of groups from ever achieving great per-
However, it wasnít until I read performance. formances. I think the most pervasive
Mockingbird that I knew the story of and dangerous addiction in our soci-
her climb up the mountain. Harper No Easy Victories ety is not one of the big four (drugs,
Lee, who really went by Nelle Lee, left John Gardner, one of my all-time fa- alcohol, sex, and gambling), but rather
law school in late 1949 and moved to vorite writers, wrote a truly great the belief that we are entitled to
New York in 1950. She lived ex- book in 1968 called No Easy Victo- ëtreatsí. As in, ìI worked hard today,
tremely frugally in a cold-water only ries. This book is remarkably rel- and I deserve a _____ î. You can fill
apartment. She worked as a reserva- evant for many of the issues we are that blank with a variety of answers:
tion clerk for Eastern Air Lines by day dealing with as a country today. He $5 cup of coffee, trip to Mexico, an ice
and wrote by night. From 1950-1956 wrote, ìHow can we preserve our as- cream cone, a new dress, a new sports
she dedicated herself to honing her pirations and at the same time de- coat, a new CD, an addition to our
craft in her humble little apartment. velop the toughness of mind and house, a new carî and on and on.
Then in December 1956 she received a spirit to face the fact that there are no It seems to me that we can become
remarkable gift. Her friends, Michael easy victories?î He went on to say, so obsessed with the treat at the end of
and Joy Brown, gave her a check that ì Very few have excellence thrust an activity that we erode our ability to
allowed her not to work for one year upon them. They achieve it. They do remain patient until we achieve a truly
while she focused on her writing. not achieve it unwittingly, by ëdoiní great performance. Treats are fine, but
From 1957-1959, with considerable in- what comes naturallyí; and they they arenít going to take you to a
put from her literary agent and editor, donít stumble into it in the course of higher level. I challenge you and me
she crafted To Kill A Mockingbird. amusing themselves. All excellence both to enter a 30-Day Gratification
Detox Center. Start with just one day. Jefferson Barracks National Cem- and charge for your skills, in that or-
For one day go about your normal ac- etery. On a very hot, muggy St. Louis der. Too often Iíve seen people charge
tivities and when you get to the point day these 4,000 Boy Scouts walked for skills they plan on developing
that you say, ìOk, now I deserve a little in silence for 30 minutes up to the later. They might get through the door
treat,î respond by giving yourself ceremony, stood in quiet attention once with that approach, but they
nothing. Thatís right. Give yourself during the ceremony, and then spent wonít build a great career that way.
nothing. Slowly wean yourself off of the next two hours going all over the Think of your skills as a new product
the addiction that every activity, even cemetery planting flags. It was an your company wants to sell and even-
successful activities, need to be re- amazing experience to see tens of tually make a lot of money with. First,
warded. thousands of identical headstones your company would work to under-
You might be thinking, ìDan, this spanning more than 150 years of US stand what product would be of value
all sounds a little too puritan for my military members. And then to see to their customers. Then it would
tastes. If you take out all the treats, thousands of Boy Scouts inserting work to create and improve the prod-
what is left? Life would be pretty bor- their flags one at a time made the day uct. Then it would let customers know
ing.î If you happen to think that, then even more impressive. that the product is available by show-
I would say, ìWell, letís see. What is This combined effort over an ex- casing it in a variety of ways. And then
left? If you take out the ice cream, do- tended period of time reminded me of it would charge an appropriate
nuts, cookies and brownies, then what the effort my ten-year-old daughter, amount in order to generate a profit for
is left is great energy that you can use Sarah, and tens of thousands of her the business. This is the same four
to improve your performance in the closest Girl Scout buddies make every steps I want you to consider in acceler-
area that you want to be great at. If you year in selling Girl Scout cookies. It is ating your career.
took out the clothes, trips, and house their sustained effort that makes the
additions, you would have more Girl Scouts of America such an ex- Step One: Know Your Transferable
money to put toward improving your traordinary organization. Skills
performance in the area youíve chosen Is it possible that we adults need to The first step in accelerating your ca-
to be great at. If you take out the little learn from our children how patience reer is to understand what you do
breaks in the day to play computer can generate truly extraordinary per- well and with passion. This has noth-
games, then you would have more formances? ing to do with your current age, years
time to put toward improving your of experience, title, income, height,
performance in the area you want to Transferable Skills and How gender, race, or anything else. When
be great at. to Showcase Them you strip away everything else, what
Achieving an extraordinary level Donít believe them. When companies youíre left with is the value you bring
of performance requires patience, a lot tell you they arenít hiring because of to any situation and that is the combi-
of patience. It requires the patience to the recession, donít believe them. nation of your strengths and your
put off the rewards, or at least concen- What they mean to say is that during a passions.
trating on the rewards, and focus on recession they are very, very discern- Write down your answers to this
improving the actual performance you ing about who they hire and who they question, ì What do I do well with
want to be great at. That means work- keep on their team. However, every passion?î
ing, focusing, concentrating, search- company is always hiring as long as As I mentally scanned across the
ing for ways to get better, working, fo- they believe they are getting an amaz- more than 150 executives Iíve person-
cusing,Ö It doesnít mean work a little, ingly talented person who fits well ally coached, Iíve landed on one that I
get a treat, work a little, get a treat,Ö within their culture. will use as my example in this article,
Transferable skills are what will even though the personís name was
Boy Scouts and Girl Scouts make you a person of interest in mul- not Art. He identified his transferable
of America tiple industries. I define a skill as some- skills as the following:
Iím going to close this issue with a thing you do with a high degree of com- Artís Transferable Skills (what he
story that I think reinforces my main petency and passion. A transferable did well with passion)
point in a variety of ways. On May skill is one that can be taken from one Very organized. Always shows up
24, the day before Memorial Day, I type of job and applied successfully in on time prepared for the discussion.
went with my eight-year-old son, another job. An x-ray technician canít Exceptionally good listener in pri-
Ben, and 4,000 of his closest Boy take his ability to read an x-ray into the vate conversations and large fo-
Scout buddies to Jefferson Barracks hospitality industry, but he can take his rums.
National Cemetery in St. Louis. Our ability to understand and solve compli- Starts each day with a checklist
job was to plant a flag one foot from cated technical issues and use that skill and stays maniacal in getting
each of the headstones. Essentially a to add great value to a company in the things off the check list.
fairly easy task I thought. That is un- hospitality industry. Very good at facilitating group dis-
til I learned there are 130,000 mili- Your job is to know your skills, cussions and drawing input from a
tary men and women buried at hone your skills, showcase your skills, variety of people.
Can both take and give directions Offer to emcee an important com- Get involved in community
in a professional, classy manner. munity event. Do a killer job in groups such as a religious organi-
Can explain plans to a group in a your opening and closing remarks zation, Boy Scouts and Girl Scouts
friendly, down-to-earth manner. and in keeping the event moving of America, Optimists Club, Ro-
Willing to change approaches de- smoothly and on time. tary Clubs, and so on. In casual
pending on the makeup of the Volunteer to mentor up-and-com- conversations be willing to add
group. ing employees in your organiza- value to what the other person
tion. This is what Art did. After wants to achieve.
Step Two: Hone Your Transferable three of his protÈgÈs proved to be Head up a high school or college
Skills highly successful employees, Art reunion. Demonstrate expertise in
Once you know the transferable was promoted into a far more se- social networking tools and other
skills you bring to the party, the next nior management position. technological ways of enhancing
step is to make each of them better. Offer to work with long-term diffi- the event.
Just as Apple continually works to cult clients. Demonstrate your Write articles for your in-house
improve each new iteration of its ability to solve problems and cre- publications and trade publica-
iPhone and Disney/Pixar Animation ate win-win scenarios for the com- tions both in your industry and
Studios works to improve each new pany and the customer. outside your industry. Articles are
film it makes, you need to continu- Start a not-for-profit organization a great way to deliver value to
ally sharpen your transferable skills. on a volunteer basis and make an other people.
Art worked very hard over a num- enormous impact in your neigh-
ber of years to improve his good listen- borhood. I saw one person collect Step Four: Charge for Your
ing skills in order to become a fantastic hundreds of baseball gloves, bats, Transferable Skills
listener, his facilitating skills to be- and balls and then take them to In the end, your transferable skills are
come the person everyone wanted to the poorest neighborhoods in the of great value to a number of organiza-
facilitate meetings, and his public- Dominican Republic. A lot of tions. Donít take them lightly. Youíve
speaking skills to be an even more pol- people sat up and took notice of spent years honing and showcasing
ished speaker that more people could his organizational and inspira- these skills. They quite literally are
feel comfortable listening to. tional skills. your stock in trade. But donít toss
Join a local Toastmasters group them around lightly. Just as a great
Step Three: Showcase Your and/or take a Dale Carnegie Course product deserves to demand a great
Transferable Skills on public speaking. You will meet price, you definitely will have earned
Of course, having well-honed transfer- a few dozen people from a variety the right to request a strong compensa-
able skills will not help your career if of organizations and they will hear tion package. If you donít take the
no key decision-maker knows about you speak on topics of your choice. value of what you bring to an organi-
them. You have to put these skills into One really good speech can lead to zation seriously, how can you expect
motion where the right people can see several really good conversations other people to do so?
you in order for them to consider you that might lead to all kinds of You can deliver value at low prices
for new positions. Unfortunately, things. during the showcasing stage, but
most of these opportunities come dis- Become a board member of an as- when it comes down to the hiring
guised in ìno or low payî options. sociation that you care deeply stage you need to ask for what you
Who cares? Think of them as ìcareer about. Take your responsibility as honestly believe youíre worth. Donít
acceleratingî options. Just as a great seriously as you do your own job. start low with the expectation your in-
new product needs to be nurtured in Demonstrate that you can be on come will rise dramatically. If your
the marketplace until customers know time, prepared, and willing to new employer can get your transfer-
about it, your skills have to be demon- tackle touchy subjects. able skills on a full-time basis at a low
strated over and over until the right Inside your organization take a lat- price, why will he or she double your
people notice them. eral assignment overseas to show salary in a short time? Your new boss
Make a list of every opportunity you can operate successfully in knows the value he or she is receiving
you can think of to demonstrate your multiple cultures. because youíve already showcased it.
skills, both inside and outside of your Take a pay cut to move into a dif- Now you need to request the value
current organization. The objective is ferent department in order to let you think you deserve in the form of
to get people talking about your skills. new people see your specific compensation.
Here are a dozen or so ways Iíve seen skills. There they are. Four steps to lever-
people demonstrate their skills: Offer to do a breakout session at a age your transferable skills and accel-
Join a local professional association national trade conference to dem- erate your career.
and volunteer to run a fund-raising onstrate your skills in front of a va- © 2009 Dan Coughlin. All Rights Reserved.
event. Demonstrate your organiza- riety of decision-makers and
Reference # 03M-2009-09-04-01
tional and leadership skills. recommenders in other companies.
Tamilnadu
Tourism

I N T E R V I EW
Social marketing can be a single idea or it can be a cascade of many ideas that are
campaignable. Tata Tea Jaago Re is a single idea. An idea that attains relevance
during election time in a big way. This single idea can be used in different ways
altogether. The joy of this idea lies in the fact that tea is a wake-up stimulant.
– Harish Bijoor
INTERVIEW
You are known to be one of the 2005, you said that brand is just a ing will remain a pure product at all.
pioneering marketers of coffee. thought, a simple thought that Coffee drank at home is a product. The
Can you brief us on your stint lives in a personís mind, whereas, same coffee partaken at a Barista or a
with working for tea and coffee few consider brand to be a per- CafÈ Coffee Day outlet is a service.
brands? Did you intend to special- ception. How would you like to God worshipped at home is a product.
ize on tea and coffee or it just hap- justify your idea? God worshipped at church or a temple
pened over a period of time? The brand is really not a perception. It is a service! The service dimension
I started my career accidentally. I is simpler, it is a mere thought. A adds value to a brand. Value, that is
joined Brooke Bond, a Tea and Coffee thought that lives in peopleís minds. unique. Irreplaceable even! Products
company for a start. I worked on dif- Perceptions are formed much later, the and services are sold at the lowest
ferent varieties of tea and coffee and wings and tails that brands sprout in common denominator level by the use
then went on to specialize in the ter- peopleís minds after living there for a of simple marketing. As societies and
rain. In the beginning, it was all about while. A brand is a thought that lives people evolve, marketing assumes a
marketing tea and coffee. As I grew in in peopleís minds ñ not necessarily in higher dimension of play. Look keenly
the company, it was all about planta- consumer minds. Brands live in the at Maslowís hierarchy of needs for a
tions, operations, export and more. I minds of all ñ consumer or not! One of clue. When marketing to society is
moved on after 8 years with the HUL the big and powerful brands in your simple, simple marketing rules. When
group over to Tata Tea Limited, and mind could be your mother. This is a society is deprived of food, clothing
then on to Tata Coffee Limited. That powerful thought. This is not a per- and shelter, simple marketing rules.
was a startup operation in marketing ception. It is a thought. Thoughts are As one climbs Maslowís hierarchy of
coffee from scratch. It was exciting. more powerful than perceptions. needs, marketing itself needs to
Within the HUL group, I had a given Simple as well. morph. When social needs dominate,
portfolio of brands to manage. At Tata According to you, why is Social- marketing needs to focus on societal
Coffee, I had to play a major role in Cause Marketing important in mores and moods. Marketing is all
creating those brands and options for present day scenario? What are about classiness and experiential ben-
the company to have a marketing the origins of Social-Cause Mar- efits here. Still, one lives at the func-
front-face ñ from being a plantations keting? Is this similar to Cause-Re- tional satiation level. As society mor-
oriented company for decades. In lated Marketing? phs still, and as people reach levels of
short, I guess it all happened over In the beginning, marketing is all self-actualization in their lives, when
time. Over a span of 16 years across about selling products. About selling money and societal scores do not mat-
two companies. HUL at one end and tea, car, tractor, pantyhose, etc. Then it ter, marketing needs to morph to a
Tata Coffee Limited at another. Excit- is about selling services. Marketing of level of emotional gains and cues. At
ing times! services is a higher end development. the highest end of these emotional
In one of the presentations made When products come to a standstill, gains and cues lies social marketing.
by you at PR Pundits workshop services take over. To that extent, I do Social marketing dominates in a soci-
held in Mumbai on November 30, believe everything is a service. Noth- ety that is operating at the highest
common denominator level of its cus-
Harish Bijoor, Brand-expert and CEO, Harish Bijoor Consults Inc, is a brand domain specialist operating tomer profile and not at the lowest
out of Bangalore. He runs a unique boutique consulting outfit branded Harish Bijoor Consults Inc., a common denominator level. Societal
brand name that has a consulting presence across the markets of Hong Kong, Seattle, London, Dubai marketing attains relevance in catego-
and the Indian sub-continent. ries where there is enough ennui with
He worked as the Chief Operating Officer, Zip Telecom Limited and has spent the last eight years standard brand positioning stances.
prior to his Telecom stint with Tata Coffee Limited in various designations moving through the Brand Take tea for instance, in the beginning
Management and Marketing Hierarchy. Harish spent the first eight years of his career with Hindustan it was marketed simply as the ëtastyí
Lever Limited moving through the Sales and Distribution stream during the first four years and the tea. The selling line was generic.
Brand Management stream in the next four. Simple. As society grows up from one
Harish is actively involved in the world of coffee in India. He is a member of many active coffee degree of want, need, desire, aspira-
forums and delivers lectures on the subject in India as well as abroad. He is a member of the Coffee tion and deprivation to another, mar-
Board of India under the auspices of the Union Ministry of Commerce. Harish is an active member of keting itself morphs in its appeal. Tea
the Plantations sub-committee of the Planning Commission for the formulation of the XIth Five Year
therefore becomes functionally posi-
Plan(2007-12).
tioned. It becomes the tea with ëtasteí,
Harish has recently published a book titled, Marketing Trends – Smart Insights into the World of the tea with ëstrengthí and the tea with
Indian Business, a serious book written in a style that is distinctly young and MTV-ish! He is currently
íaromaí. And then, comes another tea
involved in his second book on core branding. Harish is a member on the Board of Directors of a clutch
of companies and his passion lies in the arena of good Corporate Governance. Harish teaches at the
with ëtaste, aroma and strengthí all to-
Indian School of Business, Hyderabad (Ranked No. 20 among Global Business schools by Financial gether. This functional stance can
Times, London) and is a much sought-after public speaker. He has a total of 8617 hours of Public then moves on to economy (the tea
speaking and Training experience among Corporate organizations across the world. that gives more cups per kilogram)

EXE MBA

INTERVIEW
and more. Society morphs and grows disconnect at all. Longevity of such important for the brand management
again. Functional attributes and func- ideas lies in the creative excellence that team of Tata Tea not to get bogged
tional positioning stances give way to can be achieved through differing and down by all the accolades all around.
emotional ones. The tea that gets you different campaigns. Brand managers need to be realistic
to fall in love? The tea that helps you Take for instance, the Jaago Re! and in sync with ground level needs of
work more (the work-mate tea) and campaign, the ad focused on elec- the sales teams.
more. Society grows up. Society is tion-related issues. Would people How do you look at this initiative?
tired of everything else now. Consum- still remember the Jaago Re! cam- Is this Tata Teaís Corporate Social
ers are matured and are self- paign even after the elections? Will Responsibility (CSR) or just any
actualising. This is the time for the ëso- this make some kind of impact on other marketing/branding initia-
cial causeí USP to come in. Tata Teaís the customers? If the customerís tive?
Jaago-re campaign fits in here. Tata memory is short-lived, to what ex- I do believe this is Tata Teaís social re-
Tea is not the only company that has tent can they relate the ads with sponsibility activity that has a brand
experimented with this to success. Tata Tea? Will this drive the sales piggybacking on it. I do believe it is an
Lifebuoy has, with its ìLifebuoy of the brand even after? excellent campaign and has created
Swasthya Chetanaî and the Lifebuoy Most Cause-Related Marketing (CRM) for the brand and the company a very
clean up the locality campaign ads. So campaigns are poor on sale generation. positive appeal in the minds of con-
has Surf, with its Do bucket paani They do much more than create sale. sumers ñ not only consumers of tea,
bachana hai campaign with Shabana They seldom create sales. They help but consumers of the democracy that
Azmi in the lead. It sure is cause-re- build a positive brand image. Tata Tea we live within.
lated marketing as well. will need to create separate and dispar- Tata Tea is also a global brand
Can you give us a few examples of ate campaigns to create sales. Jaago Re with significant market shares in
highly successful global Social- essentially creates brand salience, and countries like the UK and the US.
Cause Marketing initiatives. What brand positivity. For sales, you need In the light of growing cause-re-
can be the insightful perspectives
for marketers and brand manag-
ers from these initiatives?
Very simply, when you involve society Most Cause-Related Marketing (CRM) campaigns are poor on
in your marketing mix, it can be profit- sale generation. They do much more than create sale. They seldom
able. Society that is self-actualising
emotes with your brand that much create sales. They help build a positive brand image
more, when you support society and
its many causes. This is a terrific way
to make consumer connect happen
through brands. campaigns that operate at a crass level lated marketing programs, do you
Are there any Indian brands that of consumption oriented dynamics. see any need for the company to
have succeeded in coming up If social branding becomes the take up such initiatives even at the
with social campaigns? long-term initiative of Tata Tea, global level?
HUL and Tata Tea are leaders in this what can be the other socially rel- I do think the opportunity lies open in
space (social campaigns) of social- evant themes for the brand? this realm. There can be campaigns
cause marketing. Would Tata Tea continue coming that talk the green language for in-
Do you consider social marketing up with the same kind of advertis- stance. Tea is green and the green
to be an effective tool in influencing in the future? cover it adds to, is a story in itself. The
ing the buying behavior of the cus- I do believe Tata Tea must lapse into its global opportunity is big, but highly
tomer? If it succeeds, what is the standard format of advertising once cluttered as of now.
longevity of this marketing ap- again and must not get carried away Tata Tea took up Jaago Re! cam-
proach? by it all too much. It has done an excel- paign after it attained first posi-
Social marketing can be a single idea or lent job with Jaago Re. But the com- tion in India in terms of volume.
it can be a cascade of many ideas that are pany must move on. Remember, the As such, do you establish any re-
campaignable. Tata Tea Jaago Re is a number of customers who sit at the lationship between brand life
single idea. An idea that attains rel- self-actualisation level in India are a cycle and social-cause marketing?
evance during election time in a big way. nano-percentage of the total market. At what stage of brand life cycle
This single idea can be used in different Time to move on. Move on with cam- does it make sense for any com-
ways altogether. The joy of this idea lies paigns that will sell more and more tea pany to come out of its traditional
in the fact that tea is a wake-up stimu- once again. The memory of Jaago Re advertising model (highlighting as
lant. The product story can be woven will be there as a good and positive usual the emotional and physical
intrinsically into the campaign with no stroke for a brand right through. It is characteristics of product/brand)

INTERVIEW
and focus on intellectual and self- marketing. What are your views
actualization issues? on it?
It is the role of the leader to appropriate I agree though this is yet to be audited
this role normally. In the English print and proven. The cycle time of delivery
media, the Times of India is the leader. is a delayed cycle time as well. It takes
The paper therefore appropriates a long for such campaigns to deliver.
leadership stance and position in its Brand Managers need patience and the
campaigns, be it ëLead Indiaí or ëTeach will to harvest after a long time cycle.
Indiaí. When the leader in a category Impatient brand managers donít get
takes up such campaigns, spread, reach much out of this. The fifth P of market-
and credibility levels are far higher. ing here is Patience with a big P!
There certainly is a relationship be- Do we need to exclusively have
tween leadership stance, CSR and the something called social market-
age life-cycle of a brand and the cam- ing, when the businesses in gen-
paigns it can get away with. eral are expected to be socially re-
What will be the success of cause- sponsible and ethically sound?
related marketing programs, if Why do you think there is a de-
they are initiated by a company at marcation between commercial
introduction or growth stage? marketing and social marketing?
Will be weak, will suffer on credibility This demarcation is there, but will blur
scores, and will most likely flounder in the long term. All marketing operates
for most of its part. Therefore every- within the context of society. All market-
one cannot attempt this. Brand heri- ing will therefore have to adopt stances
tage is important. Brands go through that are friendly and in sync with con-
the standard stage of being a novice, a sumer needs, wants, desires and
student, a learner and finally a teacher. aspirations.Over a period of time, all
Only when a brand attains the teacher marketing will be social marketing.
stage can it attempt such campaigns. How far can social marketing pro-
Brands with grey hair to boast of get grams in India be successful in
away best with such campaigns. Tata terms of creating a social impact/
Tea is one such. So are Surf and change?
Lifebuoy! They have a big role to play. Brands
Just the way a celebrity is com- need to discover that they need to give
missioned to endorse a brand, back to society what they take from it.
should a social cause be endorsed This is going to be a brand sustainable
by a powerful brand? Will such practice in the long run. It cannot be
endorsements bring desirable re- forgotten or ignored. Brand will create
sults? What if a social cause is not change ñ in attitude, in behavior and in
endorsed by a not so well-known terms of sociocultural impact.
brand? As a new marketing initiative,
Not necessary at all. It is only inciden- will cause-related marketing ap-
tal that this campaign of voting with proach be successful in India?
gusto has been endorsed by Tata Tea. It will. This is just the beginning.
The Polio drops campaign of the Gov- Watch out for more. Socially-
ernment of India and the NAB cam- ostracised categories such as ciga-
paign on eye donation have not rettes, liquor, gutka will take up more
needed commercial brands to endorse of these. Look out for borderline cat-
them. In fact, when noble causes get egories such as oils, sugars and petro-
touched by brands, more often than leum to take up more of these.
not, they lose sanctity. The interview was conducted by
Studies reveal that social mar- R Naga Sandhya and P Girija
keting helps in differentiating IBSCDC (www.ibscdc.org)
oneís brands, increasing market for their case study on
share and gain more brand loy- “TATA Tea’s Jaago Re! campaign: The Social
alty. Despite these benefits, so- Cause Marketing Initiatives and Longterm
cial marketing spending is less Branding Initiatives”
when compared to conventional Reference # 03M-2009-09-05-06

S CHAND

Cause Marketing
A Historical and Critical Perspective
it also led to clashes between the man-
One of the problems associated with cause marketing is its agement and stakeholders over the se-
tendency to commercialize the philanthropic process. Many lection of philanthropic causes. Still,
the 1960s and 1970s are considered a
consumers now limit their philanthropic involvement to the hallmark period for corporate willing-
cash register, believing that by purchasing products that ness to engage in social issues. This
generate charitable donations, they are doing enough to trend was reversed during the eco-
contribute to social causes. This makes nonprofits even more nomic downturn of the 1980s, when
business leaders found themselves
eager to get a piece of the action. One of the latest trends in the under constant financial pressure. In
world of cause marketing is the presentation of workshops for that tough fiscal climate, philan-
training nonprofits in how to market themselves to potential thropic activities did not contribute to
the immediate goal of maximizing effi-
businesses partners. ciency and increasing profits and divi-
dends of businesses.
In order to encourage corporate
S
ince the 1980s, cause marketing From Corporate Charity to giving, President Reagan initiated the
has developed into a major mar- Strategic Philanthropy Task Force on Private Sector Initiative,
keting trend for business. An of- For nearly a century, American busi- providing large tax breaks for busi-
fer by American Express to help contrib- nesses have relied on some form of nesses that voluntarily contributed to
ute to the cause of restoring the Statue of PR. The overarching goal has been to charitable causes. Businesses, how-
Liberty and Ellis Island by donating one defuse, impress, or evade critics in or- ever, were in no rush to take advantage
cent of every transaction made on any of der to create a business-friendly atmo- of the program. Out of 400 large com-
its cards and $1 for every new card is- sphere while the political objective panies surveyed in 1982, only 6%
sued during the last quarter of 1983 is has been to prevent laws or regulations planned to boost their charitable con-
generally credited as the introduction of opposed by businesses from gaining tributions, while several planned to
this practice. In addition to collecting popular support. Public relations reduce them.2
$1.7 mn for the restoration effort, Ameri- gained popularity in the late 19th cen- Nonprofit and philanthropic
can Express gained fantastic publicity in tury, when rapid industrial growth and causes suffered as a result, but their
the form of news and television stories, a wave of corporate mergers caused ërescueí came partly in the form of a
and the resulting 28% increase in the public uneasiness about big business rapidly growing marketing concept
use of its cards was obviously a major and unregulated corporate power. An called ëbrandingí. Marketing experts of
plus. Recognizing the potential, other arrogant attitude among industry lead- the 1990s believed that in order to be
companies followed suit, and by the ers combined with unwillingness to ac- successful, a brand must represent
early 1990s US businesses had under- knowledge the publicís concerns fu- more to consumers than a physical
taken cause marketing on a grand scale. eled a view of American corporations product. The relationship between a
Between 1990 and 1999, the amount as ësoullessí and uncaring. Rather than company and its customers was not
spent on this form of marketing rose alter their behavior, corporations limited to a simple transaction of goods
from $125 mn to $630 mn annually. Six turned to the emerging field of PR for or services but also included an emo-
years later, expenditures had increased help. They were advised to display tional component. When successfully
to well over $1 bn. In 2009 it is predicted their socially responsible side to the carried out, this strategy could bolster a
that $1.55 bn will be spent for cause public ñ a recommendation that many brandís equity and provide an open fo-
marketing in the US alone.1 Although it have followed. rum through which the relationship
provides philanthropic causes with In 1953, the US Supreme Court
much-needed funds, the guiding force ruled that corporations did not need to 1
ìCause Sponsorship Forecast Revised,ì Cause
Marketing Today, June 2009, available to sub-
behind the practice of cause marketing limit their charitable donations to scribers at http://
is not the needs of nonprofits or the causes that were directly related to w w w. c a u s e m a r k e t i n g f o r u m . c o m /
page.asp?ID=72.
amount of good such marketing does, their business profiles. This resulted 2
W.H Miller, ìPush Yet to Come? Industry Isnít
but rather the ability to serve business in in a dramatic increase in corporate Rushing into Social Activism,î Industry Week,
a public relations (PR) capacity. support for the arts and education, but February 22, 1982, 18.

Cause Marketing
between the consumer and the brand ergy supplier AmerenIP exemplifies this fundraising event in the country. More
might deepen. Businesses therefore be- strategy. Each monthly bill to customers than most nonprofits, the Komen Foun-
gan to strive for a marketing approach includes a plea for donations to the dation is actively involved in market-
that would integrate branding with so- companyís ëWarm Neighborsí program, ing its event to companies in search of
cial issues of concern to their intended established to help customers pay their cause marketing ventures. In 2009,
consumers. It is here that strategic phi- utility bills and weatherize their homes. more than 20 large companies, includ-
lanthropy enters the scene. While AmerenIP itself contributes an ing Kelloggís, Yoplait, Pier 1 Imports,
Defined as ìcorporate giving that unspecified amount, the program relies Re/Max Real Estate, and American Air-
serves a dual purpose of contributing primarily on the generosity of its cus- lines (which recently rolled out the last
needed funds to charitable causes tomers. Overlooked ñ or deliberately ob- and largest of eight aircraft displaying
while simultaneously benefiting the scured ñ is the fact that those customers the special co-branded pink-ribbon
firmís financial bottom line and en- are helping other customers settle their motif that signifies the global fight
hancing businessís political legiti- debts to the company.5 against breast cancer), are members of
macy,î strategic philanthropy offered The most common manifestation Komenís Million Dollar Council Elite.
businesses a new approach. It allowed of cause marketing, however, is pur- The entry fee for the right to serve as an
them to tailor charitable donations to chase-triggered donations ñ the prac- official sponsor of the annual race is $1
social issues and causes that comple- tice pioneered by American Express mn, and the companies also undertake
mented their own products while si- in 1983, in which a company pledges separate efforts that showcase their
multaneously deducting the donations to contribute a percentage or set connection to the cause. Yoplait, for ex-
from their taxes. Adding to the benefits amount of a productís price to a chari- ample, donates 10 cents to the Komen
was a chance for businesses to expand table cause or organization. Foundation for each yogurt lid it re-
their markets, increase sales, and build Over time, the early practice of ceives from customers, with a guaran-
public goodwill that might serve as a cause marketing arrangements be- teed donation of $500,000 and a cap of
bulwark against government regula- tween a single commercial interest $1.5 mn. Not to be outdone, Wacoal, a
tions. As such, it was considered ìa and a single cause has given way to maker of bras and shapewear for
powerful tool to be used in a calculated more elaborate schemes that feature women, shares information about early
program of public relations and long- prominent philanthropic causes and a detection techniques for breast cancer
term investing.î3 host of major corporate players who and donates $2 every time a woman is
are granted exclusive sponsoring fitted for a bra during the companyís Fit
Cause Marketing: A New rights in their respective service cat- for the Cure events, with a promised
Trend egories. Established in 1982 to ìeradi- minimum donation of $250,000. In ad-
Strategic philanthropy comes in sev- cate breast cancer as a life-threatening dition to enjoying excellent exposure to
eral forms. In what is known as ëin- disease,î the Susan G Komen Founda- a key consumer base, these companies
kind givingí, a company donates tion has become one of the most vis- can bask in the glory of being associ-
goods and services to organizations in ible fundraising organizations for can- ated with a worthy cause and obtain
need. Another way to contribute is by cer research, as well as a favorite char- valuable demographic information in
donating employee time (through a ity for sponsors with an interest in the process.6
corporate employee volunteer pro- cause marketing. Its annual ìRace for Also partnering with Komen on
gram) and expertise (through a ven- the Cureî ñ a five-kilometer run/walk ñ the $1 mn level is BMW, which is do-
ture philanthropy program) to non- is the largest ongoing sports/ nating 80% of the proceeds from its
profit or community organizations. ìPink Ribbon Collectionî of watches,
The publicly most visible form is T-shirts, bags, and notebooks to the
Inger L Stole is an Associate Professor in the
cause marketing, also called cause-re- Komen Foundation. Rounding out the
Depar tment of Communication at the
lated marketing or joint-venture mar- Komen sponsor list are more than fifty
University of Illinois in Urbana-Champaign. Her
keting. Defined as ìa business strategy research explores advertising-related issues
other businesses that have each
that integrates a social issue or cause from historical and contemporary pledged $100,000 of financial support
into brand equity and organizational perspectives. She is the author of Advertising
identity to gain significant bottom-line on Trial: Consumer Activism and Corporate 3
R Phillips, ìThe Corporate Community Build-
impacts,î cause marketing merges cor- Public Relations in the 1930s (University of ers: Using Corporate Strategic Philanthropy for
porate identities with nonprofits, good Economic Development,î Economic Develop-
Illinois Press, 2006). She is currently ment Review, 2000, vol. 17(1), 1-7; J. Marconi,
causes, and significant social issues researching the political and economic role of Cause Marketing: Build Your Image and Bottom
through cooperative marketing and Line through Socially Responsible Partnerships,
the American adver tising industry during Programs, and Events (Chicago, 2002).
fundraising programs.4 World War II and its post-war impact. Her 4
Cone/Roper, Cause Related Marketing Trend
Facilitated giving is a popular form articles have appeared in International Journal Report: The Evolution of Cause-Related Brand-
of cause marketing. This is where a of Communication, Journal of American ing (New York, 1999), 18.
5
http://www.ameren.com/WARMNEIGHBORS/
business serves as an intermediary for Culture Consumption, Markets, and Culture,
adc_WarmNeighborsHomePage.asp.
customer donations to a charity (or to Advertising and Society Review, and The 6
http://ww5.komen.org/partners/
itself!). An ongoing effort by Illinois en- Communication Review. partnerssponsors.html.

Cause Marketing
in exchange for being associated with than $30,000 annually. A follow-up nonprofits, cooperation can generate
the cause, as well as many businesses survey among young people con- free publicity and many PR opportu-
with lower contribution levels. Any- ducted in 2006 showed an even stron- nities, thus saving advertising and
one who doubts the lure of breast can- ger consumer endorsement of cause promotional expenses for the business
cer awareness as a marketing tool need marketing, with 89% of those inter- involved.
only visit any department, grocery, or viewed indicating a preference for a In their eagerness to reach and im-
drug store during the National Breast brand associated with a good cause if press affluent consumers, companies
Cancer Awareness Month each Octo- the product did not differ in price and have started to poll this group in order
ber. The sheer number of manufactur- quality from that of its competitors, to determine their charitable prefer-
ers who adorn their products with and 83% claiming to have more trust in ences and, consequently, where to fo-
pink ribbons and offer to donate a a company that came across as socially cus future cause marketing efforts. In
share of their sales to the cause is as- and environmentally responsible.7 February 2006, for example, the
tonishing. Luxury Institute, a research group that
As new technologies emerged, Cause Marketing: Who claims to be ëthe sole independent
cause marketing efforts have followed. Really Benefits? voice of the wealthy consumerí, sur-
One example is the ëgiving mallsí that At first glance, cause marketing ap- veyed households with more than $5
have sprung up on the Internet during pears to be a win-win situation for mn in personal wealth and $200,000
the past decade, catering to customers businesses and nonprofits alike. The in annual income to identify their fa-
who prefer to spend their money with latter are able to obtain the funds they vorite nonprofit organizations. Habitat
businesses that ëdo goodí. For example, need, while the former get to reap the for Humanity, Americaís Second Har-
iGive.com, links customers with more benefits of performing good deeds. vest, and St. Judeís Hospital topped
than 700 affiliated merchants willing to Judging from the increase in cause the list, followed by numerous health-
donate anywhere between 0.4% to 26% marketing, it seems businesses have and research-related charities.8 Non-
of every transaction to over 24,000 non- clearly embraced the concept, and few profit groups that serve a valid social
profit groups selected by registered charitable organizations are turning function but fail to fit a corporate pro-
iGive members. The chance to be asso-
ciated with a good cause is not lost on
retail giants such as Amazon.com, L.L.
Bean, Barnes & Noble, Office Max, Relying on a market-driven system in which support for social
eBay, and Dell. During its first nine
years of existence, iGive.com distrib- causes hinges on whether they can complement a sales message
uted nearly $2 mn to charitable causes. leaves much to be desired and gives business too much power
But, as iGive itself acknowledges, the
arrangement is ìmore than shopping
for a cause,î because members have ac-
cess to exclusive coupons, free ship- the private sector away. This does not file or to appeal to the customer
ping deals, and sales alerts. mean, however, that the practice of groups that businesses want to reach
Although it is difficult to assess the merging marketing and social causes risk being ignored, while causes that
level of consumer participation in the is without problems. While cause serve as better marketing vehicles may
many cause-related efforts, consumers marketing can do a wonderful job of receive a disproportionate amount of
report a high degree of satisfaction. A collecting funds for the affiliated non- interest. Relying on a market-driven
Cone/Roper study conducted in 1993- profit organizations, it should not be system in which support for social
94 found that 84% of respondents had forgotten that charities in desperate causes hinges on whether they can
a more positive image of a company if need of funding may venture into complement a sales message leaves
it did something ìto make the world partnerships that are far from equal much to be desired and gives business
better.î In addition, 78% of adults said and may even have the potential to too much power. All too frequently,
that they would be more likely to buy a cause more harm than good. Because the true nature of a businessís contri-
product associated with a cause they cause marketing is an attempt to in- bution is not explained to the public.
cared about, 66% would switch brands crease a firmís return on its invest- How, for example, is ìa portion of the
in order to support a cause they found ment, it goes without saying that profitsî translatable into dollars and
to be important, 62% would switch re- causes are not always selected on the cents for the cause, and who benefits
tail stores to support a cause they be- basis of the potential good that can be more from a transaction, the business
lieved in, and 64% thought that cause achieved; rather, the focus is often on or the nonprofit organization?
marketing should be a standard part of the free publicity and increased sales
a companyís activities. The impact of that a particular affiliation might bring
7
Cone/Roper; http:/ www.causemarketing
cause marketing was found to be stron- to a company. In fact, and this is par- forum.com/page.asp?ID=473.
gest on people who had attended at ticularly true when it comes to busi- 8
http://www.causemarketingforum.com/
least some college and earned more ness alliances with the larger page.asp?ID=434.

SBH

Cause Marketing
Product Red, a cause marketing ment. At the time of this writing, the teen pregnancy, incest, child abuse,
campaign launched in the fall of 2006, Red campaign had raised more than sexually transmitted diseases, drug
illustrates some of the problems. The $59 mn for its causes.9 abuse, and alcoholism are serious so-
explicit goal behind the Red campaign cial problems worthy of attention.
is to raise money to alleviate AIDS, tu- The Commercialization of But while corporate sponsors flock to
berculosis, and malaria in Africa Philanthropy mainstream causes such as the
through a British-based nonprofit orga- One of the problems associated with Komen Race for the Cure and Product
nization called the Global Fund. As cor- cause marketing is its tendency to Red, few of the more controversial
porate partners in Product Red, compa- commercialize the philanthropic pro- causes attract cause marketing part-
nies such as Motorola, Armani, Apple, cess. Many consumers now limit ners. Quite often, however, those
the Gap, and American Express have their philanthropic involvement to controversial charities conduct pio-
designed specific red or red-labeled the cash register, believing that by neering work of great importance.
products and donated some of the net purchasing products that generate Thus, it is wise to question
profits from the sale of those items to the charitable donations, they are doing whether the practice of hinging im-
cause. While clearly helping the Global enough to contribute to social causes. portant social causes on the vagaries
Fund, this strategy is also beneficial to This makes nonprofits even more ea- of marketing is a sustainable strategy
the companies involved. Even with its ger to get a piece of the action. One of and a tool for social change and jus-
donation of 50% of the profit from the the latest trends in the world of cause tice. By transforming generosity,
sale of ìRedî T-shirts and cashmere biki- marketing is the presentation of compassion, and charitable inclina-
nis (priced at $100), the Gap clears a nice workshops for training nonprofits on tions into a well-functioning brand-
profit for itself, as do the founding part- how to market themselves to poten- ing strategy, companies have arrived
ners who have pledged a lesser percent-
age of profits from the sale of their spe-
cially designed ìRedî items to the Glo- Product marketers have traditionally sought an audience of
bal Fund. (white) middle- or upper-middle-class women and have avoided
In October 2006, the musician
and philanthropist Bono, a Product controversy at all costs, acting on the assumption that certain
Red cofounder, appeared on the emotions put consumers in a purchasing mood and others
Oprah Winfrey Show to launch Red serve as a deterrent
in America. For the better part of the
hour-long program, viewers followed
Oprah and Bono as they shopped at tial businesses partners. The Cause at a very successful business formula.
the Gap, Apple, Motorola, and Marketing Forum, a leader in cause They will probably continue to use
Armani stores along Michigan Av- marketing circles, offers a step-by- cause marketing as long as it proves
enue in Chicago, where a gushing step guide to help nonprofit organiza- politically and financially profitable.
Oprah bought several items. Al- tions make themselves more attrac- In fact ñ and this might be particularly
though it is impossible to estimate the tive to business partners. Thus, it is troubling to those who question this
publicity value of product place- no longer a matter of business looking approach to philanthropy ñ cause
ments on such a highly rated show, it to do good, but of nonprofits, desper- marketing works well within the le-
is safe to say that the media exposure ate for funding, trying to appear good gitimate parameters of corporate be-
exceeded the cost of donating a per- in the eyes of business. Adding to the havior, and any CEO worth his or her
centage of the profits from Red prod- challenge is the corporate quest for salary has an obligation to explore this
uct sales to charity. Within its first nonprofit partners that can deliver a form of marketing if it has the poten-
year, the campaign was reported to demographically desirable audience. tial to benefit the bottom line. The best
have raised a total of $18 mn for the Product marketers have tradition- approach for critics is thus not to
Global Fund. This, however, paled in ally sought an audience of (white) shame or scare individual companies
comparison with the estimated $100 middle- or upper-middle-class away from using this approach, but
mn that the Gap, Motorola, and women and have avoided contro- rather to pick the uphill (but not im-
Apple combined had spent to publi- versy at all costs, acting on the as- possible) battle of changing the laws
cize their participation in the cam- sumption that certain emotions put that have transformed social causes
paign. Although spokes-people for consumers in a purchasing mood and into PR vehicles for business.
Red dismissed the numbers as inac- others serve as deterrents. Following
curate, they failed to produce con- this line of reasoning, it is easy to see Note: This article is a revised and updated version
vincing evidence to the contrary, and why a more controversial nonprofit of ìPhilanthropy as Public Relations: A Critical Per-
spective on Cause Marketing,î International Journal
the Gap and Apple declined to com- group may fail to attract sponsors, of Communication, vol. 2, 2007.
while a well-established and less con-
9
A.M Eikenberry, ìThe Hidden Cost of Cause
troversial cause may attract many. © 2009 Inger L Stole. All Rights Reserved.
Marketing,î Stanford Social Innovation Review,
7 (3), Summer 2009, 51-56. Few can deny that problems such as Reference # 03M-2009-09-06-01

Surprising Facts About
Prototypes
Protracted Innovation
inexpensive and developed very rap-
Media depictions of a single, perfect prototype presented with idly; they are intentionally rough;
fanfare to clients at the end of the innovation cycle they are openly shared with others;
misrepresent the purpose and value of prototypes. Quick, and they are rapidly revised. This ar-
ticle is about prototypes, and ten facts
inexpensive, and highly visual prototypes should instead be about prototypes that readers might
routinely used to promote a dynamic, ongoing conversation find surprising.
within and outside the corporation to elicit emotional
responses, discovering and articulating customer needs, and Surprising Prototype Fact #1
Prototypes are not meant to demon-
engendering additional valuable innovation ideas. This article strate a chosen final idea, but are in-
asserts that employees at all levels should routinely be stead used to generate many potential
prototyping every potential product, service, idea, or ideas. They are integral tools in the
design process, not a result of it. The
environment. Similarly, corporate leaders need to expand their fundamental goal of prototyping is to
vision and use of prototypes to gain an insight into much- generate as many alternatives as pos-
needed organizational capabilities, future products, services, sible. Prototypes are not built to an-
and ideas and areas of expansion that may enhance corporate swer questions; instead, they engen-
der the necessary conversation to
viability and profitability. generate the right type of questions.
As a rule, successful innovators do
not look for complete answers. In-
T
o survive and thrive in the totype. What is a prototype? Sitting in stead, fragments of information un-
hyper-competitive global mar- front of a television, viewers would covered during early prototyping
ketplace, corporations need to likely have witnessed a prototype de- may be recombined and extended
produce a steady stream of innova- picted as a single, perfect model into new prototypes to even more
tion. Failure to consistently innovate shown at the end of the innovation closely match the market needs.
almost always leads to a quick trip to cycle. The presentation to a client is The prototyping process is highly
the auction block or sudden death for accompanied by great fanfare. Some- visual. Experimentation must be-
the organization. Key reasons that glo- one lifts a bright red cloth, dozens of come a continuous process through
bal leaders innovate include their cameras flash, and the crowd cheers which new and unforeseen ideas
goals to harness discontinuities; dis- wildly as what is called a prototype is bubble to the surface for consider-
cover and correct faults with current revealed. Unfortunately, that depic- ation and are immediately portrayed
products or services; understand tion is not only laughably inaccurate, in two- or three-dimensional form.
unarticulated needs; take advantage of it completely misrepresents the use Translating ideas into visual form is
latent opportunities missed by others; of prototypes. A prototype is defined an important first step in turning
and extend the utilization of an exist- as any primitive experimental fac- them into reality. Though often only
ing successful product, service, idea, simile of a proposed product, service, marginally comparable to the pro-
or environment. idea, or environment that is used to posed finished product, prototypes
Innovation is driven by new and communicate, develop, and test allow people to engage in visual
fresh ideas. Perhaps the most impor- ideas. Successful prototypes possess thinking. Using prototypes helps par-
tant tool for finding and developing six key characteristics: they are visual ticipants to intentionally engage im-
these new and fresh ideas is the pro- (two- or three-dimensional); they are precise abstract concepts to more ef-
Surprising Facts About Prototypes
fectively imagine, explore, and ulti- idea that anything is possible. In this utilized to elicit emotional responses
mately choose new ways to meet regard, instead of a specification- and possible ideas from current and
needs. Prototypes move the abstract driven prototype, the result is proto- prospective customers, suppliers,
to the tangible and allow people to type-driven specifications. and competitors. The fundamental
ìthink out loud.î A result of the shar- value of a prototype is not in the arti-
ing of prototypes is to develop con- Surprising Prototype Fact #2 fact itself, but in its ability to catalyze
cepts for participants, who then ac- The ultimate purpose of prototypes is analysis and interactions. In effect,
tively reconfigure the existing proto- to encourage an ongoing conversa- prototypes answer no questions, but
type or develop completely new pro- tion with customers. Every success- they are essential for the ignition of
totypes. ful corporation is in love with its cus- the conversations that ultimately do.
One example is the highly pro- tomers and knows a great deal about Prototypes incite new questions, in-
ductive ìinnovation factoryî of Tho- them. Organizations want to move dicate possible future directions for
mas Edison in Menlo Park, New Jer- quickly and effectively from intimate research, and test new ways to meet
sey. Edison and his staff used simple customer knowledge to cost-effective consumer desires.
visual prototypes to encourage solutions to meet customer needs. Customers should not be merely
changing patterns of thinking. In Every innovative idea starts and ends the final recipients of elegant finished
brief, they raced to translate every with a current or prospective cus- prototypes and completed corporate
new idea into a sketch, no matter how tomer in mind. innovation: they must be co-creators
crude. Literally thousands of design That leads us to an important and constant critics of a steady
sketches for potential new products problem. While organizations want stream of prototypes willingly shared
may be found in the Edison Archives.
Drawing allowed Edison employees
to share nonverbal concepts visually,
manipulating these intellectual The use of higher fidelity prototypes to determine role has several
building blocks to mentally construct significant downsides. In addition to the added cost and an
devices that did not yet exist. inability to be rapidly altered, higher fidelity prototypes distort the
Perhaps the most important ben-
much-needed feedback from employees and customers
efit of prototypes is that they encour-
age people to temporarily suspend re-
ality to access inspiration and expan-
sive new insights, to ëtry oní a multi- to fulfill customer needs and desires, by corporations. Successful innova-
tude of possibilities, and to ulti- itís not always easy to determine tors view customers as eager collabo-
mately revise their thinking about a what those needs and desires are. In rators in the design process; willing
particular subject. ëPlayingí with pro- many instances, customers may not participants in the formulation of
totypes allows a necessary escape be aware of their own needs and aspi- specifications for and review of many
from industry or corporate tradition rations, cannot reliably express them, prototypes; and champions of fin-
and orthodoxy and opens up new or may deem them irrelevant, insig- ished products, services, or ideas to
discoveries. Prototypes promote the nificant or embarrassing. Traditional other prospective customers. Much
forms of market research arenít of of creative thought is not easily re-
much help. Extensive statistical mar- ducible to words; its language is an
Dr Gary Oster is Director of the Doctor of ket research reports, in-depth focus object or a picture or a visual image in
Strategic Leadership Program and Associate groups, and customer surveys have the mind. Through the use of proto-
Professor of Innovation & Entrepreneurship in
been found to yield less and less use- types, successful innovators gain spe-
the Regent University School of Global
ful information. Most market re- cial insight into customer frustration,
Leadership & Entrepreneurship in Virginia
search methods are inherently in- friction, anomalies, faulty assump-
Beach, Virginia, USA. He joined the faculty of
the School of Global Leadership &
complete because research subjects tions, and pieces of information that
Entrepreneurship in the Summer of 2007 after
are generally imprecise communica- just donít seem to complete any
working for more than two years as Associate tors, often using verbal shorthand, puzzle.
Dean for Academics in the Regent University metaphors, body language, and facial Hereís a very simple example:
School of Undergraduate Studies and a decade expressions that can provide ambigu- When a chef in a restaurant comes up
in senior administrative roles at William Tyndale ous information. In addition, markets with a recipe for a new and unusual
College. He has served as a classroom and and products that do not yet exist are dessert, he doesnít immediately put it
online instructor since 1994. Prior to his impossible to analyze. on the menu. First, he makes some of
academic endeavors, Gary was an executive Corporations must look beyond the dessert and gives away samples to
in high-technology corporations, both in the what customers say they want and customers to learn whether they like
US and abroad, focusing primarily on the instead develop what customers it, and what suggestions for improve-
computer, electronics, and automotive show they need, and this is where ment they might have. Corporations
industries. prototypes come in. Prototypes are must similarly provide a steady
stream of prototypes to customers to tures, storyboards, bubble-charts, crude cardboard prototype led to the
ask what they would change if they mindmaps, construction paper, duct Nobel Prize for Watson and Crick,
could, until they ultimately receive tape, ëexplodedí diagrams, computer and a revolution in the biosciences.
what is called a ëhot yesí from cus- renderings, clay carving, spread-
tomers. sheets, process maps, simulations, Surprising Prototype Fact #5
PowerPoint presentations, rubber Quick, ugly prototypes are more use-
Surprising Prototype Fact #3 bands, Post-ItÆ notes, virtually any ful than elegant prototypes. Thatís
Aëfailedí prototype is highly useful to simple visual representation that right: as long as they are legible,
the innovation process. In essence, helps people to better understand simple, rough, somewhat messy pro-
there is no such thing as a ìfailedî where lack of clarity yet exists. Proto- totypes are more useful than refined,
prototype, as long as you learn some- types range in size from an item that elegant prototypes. Why? Usersóes-
thing from it. Prototypes rapidly can easily be held in your hand to a pecially non-technical onesóare of-
clarify what should and should not model the size of a building. Useable ten more comfortable and honest
be pursued, and numerous ëfailedí rough paper prototypes may be rap- when viewing a rough or unpolished
ideas are typically abandoned or re- idly produced and subsequently prototype. By conveying the message
constituted as customers provide modified by employees who possess that it was developed in a matter of
feedback in the process of finding the neither artistic nor ethnographic minutes, if not seconds, rough proto-
best alternative. What some might abilities. types signal that they were designed
consider to be ëfailedí prototypes still Quick, inexpensive prototypes with the clear intention of inviting in-
provide powerful clues to the direc- played an important role in the dis- formal suggestions, criticisms, and
tion of the next steps in innovation. covery of DNA, an important build- changes. Rough ëapproximateí proto-
As an example, a small East Coast ing block of life forms. In 1952, mo- types encourage people to revise their
Bank had worked unsuccessfully for lecular biologists James Watson and thinking about a particular subject
months to develop a new product for Francis Crick ordered precise metal and to ëtry oní a multitude of possi-
their small business customers. They
seemed to get nowhere in developing
this product until they decided to
employ a prototype. Using his
A small East coast bank had worked unsuccessfully for months to
childrenís colored pencils, a bank of- develop a new product for their small business customers. They
ficer drew out the proposed product seemed to get nowhere in developing this product until they de-
on brown butcher paper and hung it cided to employ a prototype
in the bank lobby. As small business
customers entered they were given a
cup of coffee and a crayon, and asked
to alter the drawing of the proposed prototypes to be completed by the bilities. The ëroughnessí of prototypes
product. In four days the customers college machine shop at Cambridge. transforms them from a medium that
vigorously marked off two-thirds of Not being the patient type, Dr. answers questions into one that en-
the product as being unnecessary, Watson made crude cardboard cut- courages new questions. Quick, inex-
and added a number of new features outs of the four DNA bases, called pensive, rough prototypes allow de-
they really desired. The bank initi- adenine, thymine, guanine, and cy- signers to continually incorporate
ated the revised product with great tosine. Casually playing with the ideas from customers and make new
success. Was their marked-up proto- cardboard prototype, Watson con- prototypes. For example, an indus-
type a failure? Their improved earn- tinually attempted to fit the model to- trial electronics firm cobbled together
ings would say that it was not! gether, with no success. After a brief a rough cardboard model of a pro-
interruption by a colleague, Watson posed ëfuture productí. Carrying the
Surprising Prototype Fact #4 looked at the cardboard prototype on hand-held prototype around the floor
Prototypes are very inexpensive to his desk and suddenly noticed that of an industry trade show, corporate
make. You may have seen the very an adenine-thymine pair lined up on employees showed it to customers
expensive machines that can push his desk was identical in shape to a and asked for their suggestions. The
out a solid, three-dimensional plastic guanine-cytosine pair. Immediately company received literally hundreds
prototype in a matter of minutes. Iím he saw how these could be the equal of specific suggestions on functional-
not sure I would call those a proto- steps of DNAís spiral staircase. Be- ity and packaging, which ultimately
type. Perhaps a better word would be cause the sequence of bases on one resulted in the development and pro-
a ëmodelí. True prototypes may be chain perfectly matched its opposite duction of a number of new and
constructed using a wide variety of on the other, when the chains sepa- highly profitable products.
inexpensive media, including rate, each is the precise template for a The term ëfidelityí refers to how
sketches on paper, newsprint, card- new chain of exactly matching se- closely a prototype resembles and
board, foamcore, videos, digital pic- quence. The ideas imparted from the functions as the proposed final prod-

NMDC

NMDC

uct, service, process, or idea. To deter- used only later in the design process to corporations have learned that, as
mine the needed degree of prototype determine the look and feel, and risky as innovation is, not innovat-
fidelity, it is important to know the in- implementation. ing through the use of prototyping is
tended audience and what is expected far riskier.
of the prototype. In essence, proto- Surprising Prototype Fact #6
types fill one of three functionsópro- Prototypes reduce organizational Surprising Prototype Fact #7
totypes serve to determine the role, risk. From where within your organi- Every product, service, process, and
the look and feel, or the implementa- zation do the ideas for new products, idea should be prototyped. Because
tion of a particular product, service, services, processes, or environments everything is and should be open for
process, or idea. The development of come from now? Most likely, from innovation, everything is likewise
any product, service, process, or idea employees gathered around a con- open to some form of prototyping.
should occur sequentially as role, look ference room table buried deep Although most often people think of
and feel, and implementation. In gen- within the organization. Isnít that a product prototypes, it is equally im-
eral terms, prototypes used to deter- little risky? It is not possible to re- portant to prototype service offer-
mine the role (what it should ulti- move all elements of risk from cor- ings, process technologies, and en-
mately accomplish) should be of the porate innovation programs. Fear of abling technologies. For example,
lowest fidelity. Low fidelity paper pro- risk related to innovation often firms may inexpensively prototype
totypes provide a wealth of opportuni- causes corporations to over-invest in new usages of existing financial, hu-
ties to discover what customers want the past and to tilt innovation to- man, and real assets to determine
and, conversely, what they donít want. ward incremental changes in exist- more efficient and profitable utiliza-
The minimal investment and extreme ing products rather than radical new tion scenarios. Proposed changes in
malleability of prototypes dominate products, services, processes or en- facilities, policies and procedures,
the early ideation stages because they vironments. Risk may be substan- advertising, product line extensions,
allow wide exploration of role options tially reduced, however, through the reporting relationships, operating
instructions, product pricing, distri-
bution channels, etc., all lend them-
The use of higher fidelity prototypes to determine role has several selves to prototyping. Prototyping
should be considered in at least ten
significant downsides. In addition to the added cost and an specific corporate areas, including
inability to be rapidly altered, higher fidelity prototypes distort the the business model, networking, en-
much-needed feedback from employees and customers abling process, core process, prod-
uct performance, product system,
service, channel, brand, and cus-
and the highest returns on investment regular use of low-cost experimenta- tomer experience. Organizations
of time and staff resources. The use of tion via prototypes. When proto- may easily remove unnecessary con-
higher fidelity prototypes to deter- types are actively and consistently straints to innovation if they will but
mine role has several significant shared with customers, user satisfac- first expand their view of what con-
downsides. In addition to the added tion is determined at the prototype stitutes a prototype.
cost and an inability to be rapidly al- stage rather than during or after the
tered, higher fidelity prototypes dis- final development of the product, Surprising Prototype Fact #8
tort the much-needed feedback from service, idea, or environment. Prototypes help organizations see the
employees and customers. High fidel- With significant effort, Apple future. In corporate terms, ëperipheral
ity prototypes are more difficult to Inc. CEO Steve Jobs was convinced visioní is the ability to sense, record,
construct: they restrict employees to to build a full-sized prototype of the interpret, and act on fragmentary,
less fully explore the possible design proposed Apple Store inside a ware- oftentimes ambiguous information
space and often prematurely find their house near the Apple campus in that foreshadows possible future
way into the final system. When ex- Cupertino, California. Observations changes in technology, channels, and
ploring role, higher fidelity prototypes in the full-scale prototype by Apple consumer behavior. Astute organiza-
unintentionally signal that the ide- staff members revealed significant tions that are able to tune in to these
ation process is essentially complete design flaws. After a redesign effort far-off, fuzzy, intermittent signals gain
and automatically cause customers to that required an additional nine critical information and competitive
focus on the look and feel require- months, the actual stores opened to advantage faster than those who wait
ments rather than role. In effect, the great success across the US. Without for it to arrive in a neat, orderly band-
premature use of high fidelity proto- the use of a prototype, the problems width. The regular use of rough proto-
types causes valued customer respon- probably would not have been dis- types with employees and customers
dents to believe that they have only a covered and the Apple Stores may provides a viable method for rapidly
vote, rather than a voice, in the design. not have been the resounding suc- clarifying and prioritizing critical
Higher fidelity prototypes should be cess that they are today. Successful clues about potential future business.
Using prototypes helps companies ideas. Research has shown that cor- ployee in every type of organization
and customers to experience a pos- porate stakeholders who partici- should be routinely prototyping.
sible future in tangible ways ahead of pated in the prototyping process ex- Ford Motor Credit Corporation
competitors. hibit dramatically higher levels of developed facility plans for a new
As an example, one church noted support for the final design than call center. As a courtesy, corporate
an increasing number of people at- those who did not, and confidently planners briefly handed over the
tending its small group dedicated to implement a prototyped design for blueprints to hourly workers for a
recently-divorced people who were the intended audience. cursory review, and were surprised
having a difficult time coping with At their Marysville, Ohio manu- when the employees provided a
the many issues related to divorce facturing facility, Honda Motor Com- completely new and significantly
and their families. The church then pany decided to initiate a significant different proposed plan in the near
added staff specifically to assist those redesign of an assembly line to make term. The plan provided by the em-
recovering from divorce. Attendance it more efficient. Rather than hire an ployees was accepted and con-
and membership in the church in- army of costly consultants, Honda structed.
creased dramatically, due largely to handed the blueprints of the line to
an influx of those who had sought their line employees. Working to- Conclusion
counseling in the church. The church gether in self-initiated teams, the Innovation is absolutely essential to
routinely adds and eliminates spe- employees sketched in their pro- organizational survival. Superior,
cialized small group meetings and posed changes and chalked the protracted innovation guided by
uses them as prototypes to see where changes onto the floor of the assem- prototyping provides opportunities
it should focus its attention in the fu- bly line. Heavy equipment cranes for companies to grow faster and bet-
ture. were brought in over a weekend to ter than their competitors, and to
make their proposed changes, and successfully influence the direction
Surprising Prototype Fact #9 on Monday morning, the consider- of their industry. Rough prototypes
Prototypes help build teams and in- ably more efficient assembly line of every product, service, idea, and
ternal focus. Innovation cannot oc- opened for business. Openness and environment developed by employ-
ees are important tools of innova-
tion. Prototypes are useful mecha-
nisms to communicate with custom-
Working together in self-initiated teams, the employees ers to find out what they really want
and need. The production of many,
sketched in their proposed changes and chalked the changes onto cheap, unfinished prototypes en-
the floor of the assembly line courages an explosion of new ideas,
and inexact prototypes are useful, as
long as they bring organizations
closer to the solutions they are look-
cur unless new combinations of the routine sharing of information ing for. Constant prototyping that ig-
ideas are communicated from one gained from prototyping is the sine nores industry orthodoxies encour-
person to another, and prototypes qua non of innovative corporations, ages insight into needed organiza-
are a tangible method for doing so. and require a culture of trust, re- tional capabilities, plausible future
Prototyping is not only a valuable spect, and curiosity. products and services, and even en-
tool for developing effective prod- tirely new areas of expansion for the
ucts, services, processes, or environ- Surprising Prototype Fact corporation. An accurate measure-
ments: it is also helpful for building #10 ment of progress in innovation in
teams within the organization. Pro- Prototypes are not just for the R&D modern organizations is the speed
totypes focus a corporate team team, but for everyone in an organi- and extent with which prototypes of
around an evolving concept and pro- zation. The development and effec- concepts and ideas are developed
vide them with a tangible model that tive utilization of prototypes need to and shared between employees and
clarifies related problems and pos- be the core competency of the orga- customers. The future success of
sible solutions. Prototyping is an es- nization and a primary mode of global businesses will pivot on their
sential core competency of the radi- thinking and operating for employ- ability to capture and portray new
cal innovation team, the lingua ees. The future success of global ideas, and the capabilities and rabid
franca of the innovation process. Be- businesses will pivot on their ability tenacity necessary to turn them into
cause prototypes are remarkably to capture and portray new ideas, reality. If organizations want to sur-
easy to create, use, and modify, de- and the capabilities and rabid tenac- vive and thrive in the future, they
velopment teams focus on critical is- ity necessary to turn those proto- need to be prototyping today!
sues far earlier in the project and are types into productive reality. With
Reference # 03M-2009-09-07-01
more flexible and willing to try new minimal instruction, every em-
I N T E R V I EW
The bottom line is that the techniques

employed in creating the messages
in Social Marketing (produced and
distributed solely by a government
agency, NGO or non-profit) and
Cause Marketing (the product of a
corporate-cause partnership) are
exactly the same. The differences are
in the areas of funding and
distribution.
– Richard M Earle
A word about The Regis Group, I was approached recently by an target, select a benefit, describe some
Inc. old friend, Marc Chinoy, to join his support points, and identify a tone
For a number of years I was an Execu- consulting group, The Regis Group, and style that can readily reach your
tive Vice President, Group Creative Inc. Marc is a world-renowned plan- target.
Director at the advertising agency ner and facilitator, who is very com- Social or cause marketing has a
Saatchi & Saatchi in New York. I had mitted to social causes. He has re- more sophisticated objective: the
created or supervised advertising for cruited a group of like-minded and changing of deeply ingrained behavior
over 50 national and international very experienced associates, that con- or beliefs. The definition of the target
brands. However, in addition to sult in a number of fields, including must be a very detailed analysis, in-
these, I regularly sought out assign- health care, education, law, marketing cluding their psychological makeup.
ments in the public service arena. I and branding, and now, social-cause The tone and style must be carefully
always found those to be my most marketing. (http://www.regisgroup. considered, so that you speak meaning-
satisfying projects. So I decided to com) fully to that target. And the desired ac-
leave Saatchi & Saatchi to devote As the author of a best-selling tion must be clearly spelled out and
most of my time to the marketing of book on cause and social cause readily accomplished.
social causes. I founded a small con- marketing, The Art of Cause Mar- There are many pitfalls and cau-
sulting Group called Greenbranch keting, can you take us through tions to be considered when preparing
Enterprises. I quickly discovered the contents and intended purport a social or cause marketing campaign.
how the techniques of product and of your book? These must be avoided, or you may
service advertising must be changed The subtitle of my book is How to Use actually do some harm. I have tried to
and adapted to deal with serious so- Advertising to Change Personal Behav- spell out all these issues clearly and
cial causes. It was then that I decided ior and Public Policy. In product or ser- succinctly in my book.
to write my book, to share with other vice advertising, the goal is simply to What is social-cause marketing?
practitioners the techniques I had de- make a sale. The construction of an What is the intended objective?
veloped and some cautions I encoun- advertising strategy (creative brief) is Why should companies commit
tered. quite straightforward. You define your their shareholdersí money for so-

INTERVIEW
cial issues? Or is it to do with the Philip Kotler, Distinguished Professor often those sponsored by companies
companyís values? Do you see an of International Marketing at the with a strong corporate value system.
inherent contradiction between Kellogg School of Management at Many times, the CEO or another top
the two words ësocialí and ëmar- Northwestern University, and prob- executive has a personal connection to
ketingí? ably our most prolific writer of adver- the cause, perhaps through a family
I believe that this would be a good tising and Social Marketing text books. member or close friend. And no, I see
place to define some terms. Years ago, Phil, a very pleasant man, claimed to no contradiction between the terms
when I worked on cause campaigns at have coined the term ëSocial Market- ëSocialí and ëMarketing.í It is a more so-
various agencies, they were called ing.í He also said that in the ënamingí phisticated form of marketing. But it is
Public Service Ads (PSAs). Mostly, discussion ëCause Marketingí was a still marketing.
they were under the supervision of the close second, and was almost selected. Why is Social-Cause Marketing
Advertising Council (the best-known Shortly after, ëCause-Related Market- important in present day sce-
was the ìCrying Native Americanî ingí (CRM) became the widely used nario? What are the origins of So-
anti-littering campaign for Keep term for corporate-cause partnerships cial-Cause Marketing? Is this
America Beautiful.) They were given and ultimately was shortened once similar to Cause-Related Market-
ëpro bonoí media placement, which again to Cause Marketing. Recently ing (CRM)?
means that they were aired or placed the term Social-Cause Marketing has The two terms both refer to CRM. And
free of charge, by media outlets who appeared, and it also refers mainly to it is extremely important today. The
were charged by government regula- CRM campaigns. The bottom line is time of abundant free media donated
tors to devote a percentage of their that the techniques employed in creat- to PSAs is over. As social marketers
schedules to PSAs. ing the messages in Social Marketing become more sophisticated, they are
As I started writing my book, I (produced and distributed solely by a discovering the need to target more
used the term PSA. My working title government agency, NGO or non- tightly-defined demographics. These
was: ëPro Bono.í But by that time, the profit) and Cause Marketing (the prod- are not predictably reached via free
pro bono requirement for PSAs had uct of a corporate-cause partnership) media, which is scheduled at the
been removed, so many cause cam- are exactly the same. The differences whim of the media outlet, usually in
paigns were using paid media. There- are in the areas of funding and distri- the back pages, or aired at 3 in the
fore ëPro Bonoí was no longer appro- bution. morning!
priate. An experienced copywriter The value to a company and its And as paid, precisely-targeted
who reviewed some of my early drafts shareholders of a cause-related cam- internet placements increasingly re-
told me: ìWhat youíre writing about is paign in support of social issues has place the traditional broadcast media
Cause Marketing.î So the title became been well documented. In a report and declining print publications,
The Art of Cause Marketing. As I got published by the Boston research firm CRM is one of the few ways that finan-
close to a final draft, I first encoun- Roper Starch Worldwide and Boston cially-strapped non-profits can be cer-
tered the term ëSocial Marketingí in the cause marketing firm Cone Inc., em- tain to reach their targets. They need a
trade press. I asked my editor if we ployees in cause-related companies corporate partner with deep pockets.
should change the title. We both score 30-50% higher on categories like The origin of cause-related market-
agreed that ëCause Marketingí was still ìI feel a strong sense of pride toward ing is generally attributed to American
clearer. But we also used the term So- my companyís valuesî and ìI feel a Express. Their 1984 campaign to raise
cial Marketing throughout. strong sense of loyalty to my com- money for the foundation formed to
I was invited to speak at a Social pany.î In my opinion, the most effec- restore of the Statue of Liberty in New
Marketing conference, where I met tive Cause Marketing campaigns are York harbor by allocating a small por-
Richard Earle is a Senior Associate with the Regis Group, Inc. of Leesburg, VA, specializing in Cause Marketing, Branding, and Advertising Evaluation.
He has over 30 years experience at US advertising agencies including Doyle Dane Bernbach, Grey, and most recently, Saatchi & Saatchi, New York, where
he was Executive Vice President, Group Creative Director. He wrote major campaigns for Procter & Gamble, Johnson & Johnson, and Revlon, and created
advertising for over 50 national brands. He also created or supervised a number of award-winning public service campaigns, including the first national
anti-drug campaign for NIMH, and the Keep America Beautiful ‘Crying Indian’ series.
Earle has recently served as advertising and branding consultant to public interest organizations such as Mass. Department of Public Health; Mass.
Council on Compulsive Gambling; One Change, SmartPower, and the Clean Energy Group. He has done advertising evaluations for the California Energy
Efficiency Campaign, the University of Toronto, and the US Office of National Drug Control Policy. He is a frequent lecturer on Cause Marketing and
Branding at corporate and organization conferences.
A graduate of Amherst College, he is currently an Instructor at the Harvard School of Public Health where he teaches a course titled “Designing a
Social Marketing Media Campaign,” and is the author of the book The Art of Cause Marketing: How to Use Advertising to Change Personal Behavior and
Public Policy. Richard Earle is a past President of the National Coordinating Council on Drug Education, the Arts North of Boston Alliance, and is currently
the President of the Cape Ann Symphony in Massachusetts.

CFA

INTERVIEW
tion of each credit card charge to the In addition, thousands of Whirl- What is the difference between a
cause was very successful. I clearly re- pool employees have contributed Social-Cause Marketing initiative
member watching from the roof of our their time and skills to helping build and a Corporate Social Responsi-
loft building in lower Manhattan as Habitat homes. The partnership be- bility initiative, after all?
the parade of tall ships from all over tween a major home appliance manu- The difference is this: one is a partner-
the world sailed down the Hudson facturer and homes built to benefit ship, with the cause partner supplying
River past the restored statue, in cel- the homeless is ideal. And the em- the reputation, the organization, and
ebration of that event! ployee involvement factor is an im- the detailed knowledge of the issues
However, Cone Inc. claims to have portant added ëplus.í Whirlpool involved, and the corporate partner
invented the category a year earlier, stresses employee community providing the funding and some ex-
with a campaign in support of the volunteerism globally. pert marketing infrastructure, includ-
health benefits of walking, on behalf A Whirlpool study in the US indi- ing the ability to make the best and
of a client with an appropriate ëfití cated that being socially responsible most efficient media buy. On the other
Rockport Shoes. From those early scored in the top five out of fifty pos- hand, a Corporate Social Responsibil-
days, the growth of CRM has been sible ëdriversí for brand loyalty among ity initiative is completely the respon-
widespread. key consumers. Since the start of the sibility of the company. I strongly pre-
Can you give us a few examples of campaign, sales were up 39%, while fer the cause-related partnership be-
highly successful global Social- brand loyalty almost doubled. At the cause of the synergism between part-
Cause Marketing initiatives? same time, Whirlpoolís ëlikeability in- ners.
What can be the insightful per- dexí rose an amazing 154%. That having been said, I generally
spectives for marketers and A third campaign which I consider advise potential cause partners to do ex-
brand managers from these ini- highly successful is one undertaken by tensive due diligence when they ap-
tiatives? ConAgra, the second-largest food pro- proach a cause-related association.
Avon, the global cosmetic and jewelry ducer in the US, whose partnership There are corporate entities out there in
manufacturer, has a female customer with the hunger-relief organization desperate need of image-burnishing,
base. And Avon is the regular sponsor Feeding America (formerly Second seeking to ally themselves with a re-
of the womenís Breast Cancer 3-Day Harvest) for over a decade has distrib- spected cause, for their ëhalo effect.í A
races throughout the US. They ex- uted food through its Kids Cafes, Com- leading tobacco company in the US has
panded this program globally in 2005, munity Kitchens, and other facilities to done this, and markedly improved their
with The Avon Walk Around the over 25 million hungry Americans, 9 public image, often to the regret of their
World for Breast Cancer. They also million of whom are children. cause partners. If it is blatantly self-serv-
market ëPink Ribbon products,í such What makes these three cam- ing, it can only increase consumer cyni-
as jewelry, cosmetic cases, etc., with a paigns successful and therefore par- cism, to the detriment of better-inten-
specified portion of the purchase ticularly relevant to marketers, is the tioned cause partnerships.
price earmarked for breast cancer re- fact that they are all ëhigh fití collabora- Studies reveal that social market-
search. This is an ideal CRM partner- tions, with the cause being very appro- ing helps in differentiating oneís
ship, since the corporation and the priate to the corporate partner. brands, increasing market share
cause have the same female target, Do you consider social marketing and gain more brand loyalty. De-
and they can also easily place a cause- to be an effective tool in influenc- spite these benefits, social market-
related item in their product line. ing the buying behavior of the cusing spending is less when com-
Another example of a cause-re- tomer? If it succeeds, what is the pared with conventional market-
lated partnership that has a high ëfití longevity of this marketing ap- ing. What are your views on it?
between cause and corporation has proach? I believe strongly in the benefits of so-
been formed between global appli- The Cone-Roper report states that up- cial marketing you have described.
ance manufacturer Whirlpool and scale Americans are more likely to But they can seem somewhat intan-
Habitat for Humanity, the cause switch brands (79% vs. 65% national gible to many corporate marketers
founded by former US President average), and 68% would pay more when compared to product-centred
Jimmy Carter that uses community when a product is associated with a sales pitches. This is particularly true
volunteers to build or renovate homes good cause. A 2002 Cone Corporate in a declining economy, such as we
for the poor. The relationship between Citizenship Study reported that 84% are experiencing globally. Hopefully,
Habitat and Whirlpool goes back to of Americans said they ìwould be as corporate bottom lines improve and
1999. They donate a range and an en- likely to switch brands to one associ- marketers become more sophisticated,
ergy-efficient refrigerator to every ated with a good cause, if price and we will see an upturn in social market-
home Habitat builds. Over 73,000 quality are similar.î I believe that a ing as well.
have been placed by Whirlpool. They good campaign can have substantial Do we need to (create?) exclusive
will expand this program globally by longevity. Its viability can be deter- social marketing initiatives, when
2011. mined by periodic market research. the businesses in general are ex-

INTERVIEW
pected to be socially responsible Exhibit

and ethically sound? Why do you Scope for Social Cause Marketing
think there is a demarcation be-
High
tween commercial marketing and
social marketing?
First, their objectives (and techniques) Minimum High
are different. When there is a particu- (Scope for CRM Minimal) (Scope for CRM is High)
lar product or service to be sold, based
upon specific tangible benefits, there
is rarely room within a brief advertis- Brand Image/
ing message for the more altruistic Reputations
benefits that promote a cause. More Nullified Moderate
often than not these belong in a sepa- (Scope for CRM absent) (Scope for CRM is Medium)
rate campaign, sponsored by a well-
Low
established brand whose product ben-
efits are well-known and donít need to Low High
be reiterated. Social sensitivity/social empathy/
Just the way brands are endorsed Social consciousness of customers
by celebrities (famous Copyright: IBSCDC; CRM = Cause Related Marketing
sportspersons, actors, etc.),
should a social cause be endorsed
by a powerful brand, wherein the I believe so, depending on the con- I believe that there is much more
powerful brand becomes the ce- tinuing needs of the cause. How- awareness of important social causes
lebrity endorser for the social ever, successive initiatives within a throughout the world today. There-
cause taken up? What happens if long-term campaign must be inno- fore, social-cause campaigns that are
an important social cause is ad- vative to refresh the campaign and honestly and sincerely designed can
dressed by a not-so-well-known provoke new interest. In lengthy have an increasingly important role to
brand? Would it have the same campaigns, it helps if the cause can play in any brand marketing strategy.
reach as a powerful brand would be branded every bit as compel- And if the brand and the cause have
have? lingly and memorably as their part- an inherent synergy or ëfití, then the
Powerful brands are clearly the most ner brands. campaign is considerably strength-
potent and effective cause partners. A We have created a matrix for de- ened.
not-so-well-known brand would not ciding on the scope of adaptabil- The uses of the new media; the
have the same power. However, as ity for social-cause marketing? Internet, YouTube contests, social me-
stated earlier, I find that the strongest (See Exhibit) Please give your dia sites like Facebook and Twitter,
cause-related partnerships are those comments. and interactive media in everything
that have a solid ëfití, in which the I consider this matrix to be generally from the Web to cell phones to bill-
sponsoring brand seems a logical part- correct. I do believe that a carefully boards can only increase the effective-
ner for the cause. Should a not-so- targeted cause-related campaign can ness of these campaigns, particularly
well-known brand be one that is easily in fact increase the social conscious- among the young. Marketing execu-
associated with the cause benefit, the ness of the consumers, thereby in- tives in both developed and emerging
cause-related partnership could in fact creasing the scope of CRM. markets that ignore this trend, do so at
help establish that brand. For example, in the US, clean en- their peril!
At what stage of brand life cycle, ergy or energy efficiency campaigns And the leaders of struggling cause
would it be meaningful for any have traditionally been directed to- organizations, finding that individual
brand to get out of its comfort zone ward an upscale, better-educated con- contributions are waning in tough
and start embracing social sumer. But recently, energy cam- economic times, had better seek out
causes? paigns have been redirected to a and develop a CRM partnership. Their
When brand research demonstrates lower-income ëgreen collarí target. survival may depend on it!
that it is well-recognized, and its ben- This should greatly expand con-
efits well-accepted and well-under- sciousness and meaningful conserva-
stood by the public. Unless, as stated tion.
above, it is a new brand that by its in- What according to you would The interview was conducted by
herent nature can be closely associ- be the new trends in social Dr. Nagendra V Chowdary,
Consulting Editor, Effective Executive,
ated with the cause. cause marketing ñ both in de-
Dean, IBSCDC. (www.ibscdc.org)
Are the social-cause marketing veloped markets and emerging
initiatives truly sustainable? markets? Reference # 03M-2009-09-08-06

P E R S P E C T I V E
The Moral of the Moment…

I
íve always loved the holiday sea- A simple answer would be that the me would say that a beer company
son; people are a little happier, the organizations sponsoring these acts of wishing us good cheer for the holi-
days are little brighter, and so many kindness create a well guided trail days coincidently has its biggest alco-
of the advertisers seem to get caught back to their organization hoping their hol consumption during that holiday
up in the holiday spirit. As a matter selfless act will pay dividends at a season. I suppose we have found our
of fact, certain commercials that have later date. In a sense, the campaign win-win scenario but once again
little to nothing to do with the actual would act as a surrogate marketer for there is a coincidental trail back to
product are brought out of mothballs those who are paying the bills. For in- the marketer.
and played every holiday season. Al- stance, a social-cause marketing cam- So the moral of this moment is to
though I only see these commercials paign to get the vote out on an election understand that although social-
for a week or so once a year, I know may very well benefit the organization cause marketing appears to be a self-
them well because some of them have whose candidate has a higher prob- less act of kindness by organizations
been playing annually for over 30 ability of winning from a larger turn- that are simply concerned with our
years. What I donít understand is out. Itís a win-win situation for those wellbeing the reality is that every
why. who are targeted, and those who are now and then we need to be re-
Donít get me wrong, I appreciate targeting. Itís a socially responsible minded that itís very rare in this world
having a beer company spend an enor- message, and it benefits the organiza- to get something for nothing. In the
mous amount of money showing me a tion sponsoring it. end, I think we all benefit from the
beautiful landscape, and spectacular The more difficult scenario is the concept of social-cause marketing. I
horses, to make my day a bit brighter. good natured corporation just want- just donít want to lose sight of that fact
Iím also a fan of watching a kind ges- ing to spread good cheer for the holi- that before we spread too much good
ture from one human being to another day season. Of course the cynic in will to the organizations that support
without a product in sight. It makes such marketing approaches, we
me smile, and it makes me happy. I should understand the WIFMís in-
even like to be reminded of other civic Rob Jolles is a bestselling author, speaker volved in these decisions.
duties like voting. It also makes me and President of Jolles Associates Inc., an
wonder why they are being so gener- international training corporation, © 2009 Job Rolles. All Rights Reserved.
ous with their advertising dollars. Are (www.jolles.com). Reference # 03M-2009-09-09-01
they really that concerned with my
wellbeing or is there more to it than
meets the eye? The fact is, unbe-
knownst to many of us, we are being
exposed to social-cause marketing.
Iím a pretty positive person, but I
learned long ago a simple acronym
that provides a simple, but critical
question that any capitalist has on
their mind when making business de-
cisions ñ even social-cause marketing
decisions. The acronym is WIFM, and
it stands for, ìWhatís In It For Me?î So
whatís in it for an organization or com-
pany to spend enormous sums of
money to not feature their product in a
marketing campaign? If we can an-
swer that question, we can get a much
better handle on social-cause market-
ing.

The Human Side of Business
and Marketing
Visible Efforts and Invisible Benefits
and their families led the creation of
With a more human approach, marketing practices will focus new business ventures. Growth and
on consumer growth and the development of society, going increasing competitive challenges re-
quired greater investments, leading
beyond product specificities and consumption conditions. to opening the equity ownership
This vision turns marketing operations into a human endeavor when self-generated funds proved in-
that zeroes in on people, contributing not only to their sufficient. More sophisticated tools
were needed to make investment,
wellbeing but also to their individual and social advancement.
pricing, output, salary and human re-
Thus, an aesthetic and social concern complements the sources decisions, giving room to the
ethical dimension that rules behavior, providing a more growing influence of professionally
complete, well-rounded notion of human beings. trained managers. Management
teams were encouraged to drive busi-
nesses as independent units, with
their performance measured in terms
T
he essence of business is to cre- are also responsible for undesired re- of business income. And as profits
ate value for its market, focus- sults derived from the use of market- grew, family owners found less in-
ing on people, influencing ing tools. The social responsibilities centive to engage in executive tasks.
both individuals and the society at embedded in marketing operations As a result, competition no longer
large. Clearly, mass media plays a sig- become all the more evident in de- confronted thousands of small com-
nificant role in the cultural develop- regulated, open and competitive panies regulated by the marketís in-
ment, with marketing actions ac- modern markets, where the former visible hand. Rather, large compa-
counting for a large share of media metaphor of ëan invisible handí is re- nies, ruled by their professional man-
messages. As a result, marketing placed by the many ñ and seemingly agers, competed against each other.
practices involve a dimension that irrelevant ñ decisions made by mar- As described by Alfred Chandler1,
goes well beyond their strictly techni- keting practitioners, who imperson- these executives became the visible
cal scopeóthey help forge the local ate ëthe visible handí in markets. hand that contributes to build mar-
culture. The responsibility for delivering kets, where consumers rule ñ albeit
Marketing tools can also be used and growing sustained consumer inevitably influenced by the actions
to influence society, driving positive value has also a direct effect on job deployed by executives to secure
social changes in what is typically re- creation ñ a key issue in prevailing benefits for shareholders.
ferred to as social marketing, while economic systems. Conversely, the Marketing managers influence the
ethical considerations shift the mar- lack of creativity to expand markets factors that shape markets. Their
keting focus from caveat emptor to leads to cost cuts ñ also dubbed as practices contribute to change pur-
caveat venditor. These matters are su- reengineering ñ that eventually chasing and consumer habits ñ as
perseded by a human consideration reaches managers themselves, driv- well as, eventually, customs. While
of business and marketing actions ing them towards outplacement. In they do not actually create needs,
that project their central role as cul- addition to greater responsibilities, they do emphasize the social values
tural drivers. professional executives gain rel- embedded in the society. Bearing in
evance in the age of financial capital- mind that, exceeding a minimum
Social Responsibilities in ism that has followed its predecessor, level, wealth and poverty are relative
Business and Marketing entrepreneurial capitalism, domi- notions, it may argued that marketing
Marketing practices can influence so- nated by family businesses.
ciety, supporting and promoting wel- With lower capital investments 1
Alfred Chandler, The Visible Hand, Belknap,
fare improvements. However, they and higher returns, entrepreneurs Harvard University Press, 1977.

Abhyudaya Bank

The Human Side of Business and Marketing
influences peopleís status as well as fun has led to increased alcohol con- haviors and discriminating attitudes
their satisfaction or frustration. As sumption ñ especially among against other women who do not
Gary Becker points out, ìMen and younger segments. The tobacco in- have the same attributes. Of course,
women wish to be respected, recog- dustry provides another example of marketing managers are not respon-
nized, accepted by their families, the use of multiple message and com- sible for societyís problems, such as
friends, peers and others. Consump- munication tools to induce or in- eating disorders, male-chauvinism or
tion includes a prevailing social com- crease smoking habits through adver- addictions, but their communication
ponent as, at least partly, it is con- tising, opinion leaders, movie stars, power certainly reinforces habits ñ as
ducted in public. As a result, people merchandising, carefully-crafted soda or cigarette manufacturers know
tend to choose restaurants, neighbor- brand imagery and multiple segmen- only too well: infrequent messages
hoods, schools, books to read, politi- tation. Moreover, as it was evicted lead to significant sales drops.
cal opinions, foods, leisure activities from mass media, this industry In view of their ability to influ-
with an eye in pleasing their peers started to rely on sports-associated ence society from their offices, mar-
and others in their social network.î2 messages, hiding or ignoring all evi- keting professionals need to have a
Thus, as long as business marketing dence of tobaccoís harmful effects. vast training that does not focus
proposes reachable models, it en- On the other hand, increased dos- solely on technical aspects. Igno-
ables people to reach some material ages in medicine packagings for non- rance is no excuse for these practitio-
standard that are a component of regular treatments raises sales, but ners who cannot turn a blind eye to
happiness. Instead, if it creates unat- not necessarily consumption ñ for the aftermath of their decisions, in-
tainable expectations, it can drive consumers, this translates into larger cluding regulations that restrain busi-
frustration in a large sector of the inventories until the medicines ex- ness hours or the construction of new
population. pire. Advertising campaigns extolling shopping malls to preserve urban ar-
Expanding store business hours virtually impossible female body eas. Less articulated ñ though just as
makes after-work or weekend shop- shapes add to the persistence of eat- powerful ñ reactions can also ensue,
ping more accessible, influencing lei- ing disorders such as bulimia and an- such as alcohol abstention to prevent
sure time utilization ñ though not orexia. Communications featuring abuse. In early 2000, Spain registered
necessarily improving peopleís lives. overexposed young women gather a a 41% abstinence level, as its popula-
The remarkable growth driven by lot of attention, especially in markets tion reacted to a decade-long ëparty
beer marketers with an emphasis on with a predominant male population, spirití.
camaraderie, friendship and group while strengthening chauvinistic be-
Social Marketing
Additionally, companies often orga-
Guillermo J D’Andrea is Professor of Business Administration at IAE Business School, Austral University nize social reactions, using their mar-
in Buenos Aires, Argentina. He obtained his Ph.D. from IESE, in Barcelona, Spain. He teaches marketing keting skills to change behaviors, be-
and retail management, services marketing, and international marketing. At IAE, he has chaired marketing liefs and values. This is not a new
since 1985. phenomenon: a press campaign was
His fields of research deal with retail strategy and management, and the process of shaping launched in Argentina during the
business for the Base of the (Socioeconomic) Pyramid. He has written over sixty cases and academic Presidency of DF Sarmiento between
papers. Some of his cases like Zara and his series on e-commerce have been published by the 1868 and 1874, which successfully
Harvard Business School to be used in its programs, and have also been included in other colleagues’ helped change local customs and
books. He is a frequent contributor to the Harvard Business Review, Booz Allen’s Strategy & Business, promoted the countryís education at
and the McKinsey Quarterly. His article on Value Creation for Emerging Consumers was selected in that time. Examples of social market-
2007 as one of the five with most impact in the past five years by the editors of Harvard Business ing campaigns today help prevent
Review – Latin America. He has created the Store Smart retail simulation, and is a co-author of books: and overcome addictions (alcohol,
Cases in Strategic Marketing in Latin America, 2001 (Spanish version in 2002), Administración de tobacco and drug abuse), change
Servicios (Services Management), and Retail Management, both published during 2004. harmful urban behaviors (speeding,
D’Andrea is the Research Director of the Coca-Cola Retailing Research Center – Latin America. disregard for pedestrians, indisci-
He teaches Strategic Planning and Management in Retailing Program at Babson College and at Monterrey plined parking, littering), improve
Tec Retail Center in Mexico, and is a visiting professor of the MBA program at Instituto Politecnico di health conditions (heart disease and
Milano, Italy. He has also worked as visiting professor at the Darden Graduate School of Business AIDS prevention, early cancer detec-
Administration of the University of Virginia, IEDC, Lubljana, Slovenia, and been invited to teach at the tion, cholesterol testing), raise envi-
Harvard Business School, IESE-Barcelona, IPADE-Mexico, and several other schools. ronmental awareness, advocate spe-
D’Andrea combines his academic activity with active consulting, having collaborated with cific groupsí rights (children, the eld-
companies in many fields including retailing, market research, textiles, pharmaceuticals, medical erly, consumers, women), and pro-
services, food manufacturing and distribution. He has worked with companies such as Exxon (On the mote social aid.
Run C-Stores), Exito-Casino in Colombia, Mr. Price Group in S Africa, IPSOS France, Easy Home-
Center, Siemens, Unilever, Best Foods, Bayer, Osram, and 3M. 2
Gary Becker, Accounting for Tastes, Harvard
University Press, 1996, p. 12.

Social campaigns involve orga- gins, as well as a wide support base Consumer Issues: Caveat
nized efforts led by a change agent or engaging as many stakeholders as Emptor
group that seeks to engage others to possible to provide creativity, media Companies seem to ignore questions
incorporate, modify or eradicate cer- coverage, links to current commercial on quality service, neglecting con-
tain ideas, attitudes, practices or be- efforts, and funding. These steps sumer issues unless they represent
haviors. Outcomes can be driven should be followed by detailed ex- immediate business opportunities.
over several stages that hinge on ecution, effectively reaching target As a result, businesses are viewed as
changes in population information, segments and avoiding contradictory impersonal and carefree ñ there is no
knowledge and attitudes. Social mar- messages, measuring effectiveness to one to complain to. They follow the
keting campaigns differ from com- adjust message impact, and provid- caveat emptor (buyer beware) prin-
mercial campaigns in that a soap ing for sufficient duration to ensure ciple, expecting the consumers to be
manufacturer does not need to con- awareness. In any case, if the popula- aware of any risks when they buy a
vince the population about the need tion is not ready to receive a message product or service. After all, consum-
to use soap daily. These campaigns or is not aware of the relevance of an ers are adults who can collect all the
may be broad in scope and widely ac- issue with some shared belief and information they need, and marketers
cepted, like solidarity, drug abuse or precipitating factor, it will be hard for cannot supervise the way they spend
road accident prevention initiatives. a campaign to accomplish social mo- their money or use a product ñ their
Others can fuel less support, like city bilization. job is to manufacture and distribute
cleanliness efforts, or even opposi- Social marketing efforts can reap products, and everything is allowed
tion, such as those promoting family amazing results, like getting an entire as long as no laws are infringed.
planning or legalized abortion. nation to switch from left to right- Marketing ethics intend to apply
ethical criteria to marketing decisions
and to solve ethical dilemmas for
marketing practitioners. In general,
illegal activities are also unethical,
Social marketing efforts can reap amazing results, like getting an and laws are meant to prevent any
entire nation to switch from left to right-hand driving kind of behavior that harms consum-
ers. However, laws can sometimes be
anachronistic and outdated, like the
rigid schedules that used to rule store
business hours. Yet, the opposite is
The purpose of social marketing hand driving. In 1967, the Swedish not necessarily true: some rather un-
campaigns implies the same difficul- government orchestrated an effec- ethical marketing behaviors are not
ties that characterize any transfor- tively planned and executed cam- strictly against the law. This gray
mation process in society. Their cen- paign to change traffic rules with a area, with its subtly deceitful or
tral issues are not shared by the en- limited increase in the number of barely misleading practices that are
tire population, and large groups road accidents. Thus, social market- not always ill-intended or overly
may not only be uninformed but also ing may be construed as a human in- damaging, should fall under the pur-
uninterested, becoming even harder tervention that facilitates change, view of marketing ethics.
to reach. As a result, some of these based on ideas and initiatives that Some questionable marketing
campaigns register low response improve society. practices are often upheld on the as-
rates. In addition, if the information sumption that they are widely used,
conveyed goes against ingrained atti- Marketing Ethics mostly accepted by customers, and
tudes, indifferent groups will find it Market opening and deregulation commonly employed by competitors
harder to accept such facts and will pose problems for consumers that ñ they are part of the way business is
tend to avoid them. For instance, should not be neglected or side- done. However, they are hard to jus-
reckless drivers are not the most en- stepped by marketing practices. Ap- tify and eventually upset profession-
thusiastic supporters or users of plying ethics to marketing reminds als, who end up accepting them
seatbelts. practitioners that their practices rather unwillingly.
However, many social marketing should focus on customers, and re- The analysis of marketing deci-
campaigns are successful, renewing mind them to avoid an intense appli- sions based on a functional perspec-
their promotersí interest and determi- cation of tools intended to secure im- tive ñ 4P style ñ shows an array of
nation. Experience shows that social mediate results while disregarding questionable behaviors, which may
campaigns call for a scheme that potential negative effects. The com- be applicable to other business-re-
largely resembles the one carried out plexities of management engulf mar- lated activities. One of those behav-
for commercial campaignsócareful keting as well, calling for an ethical iors revolves around the selection of
planning, hinging on prevailing atti- framework that prevents managersí underprivileged segments like chil-
tudes in target segments and their ori- isolation from the society. dren or the elders, offering them un-

necessary or harmful products, intended recipients ñ an outcome that are not hazardous for either them-
ducing them to acquire products or casts some doubts on the use of this selves or the environment? To do so,
services they do not need and whose tool. they require truthful, honest informa-
merits they are unable to judge. Other selling techniques involv- tion to make responsible decisions. If
Equally unethical are practices that ing pressure, threats or deceit also anything goes wrong in the process,
exclude specific customer groups on bring ethical dilemmas, as well as they should be able to complain to
unjustifiable grounds, like race, doubtful commissions, gifts and co- someone just as responsible, capable
ethnics, religious beliefs or looks. As vert outlays. Dishonesty, lying and of delivering a satisfactory response
regards products, in addition to prod- misrepresentations about product to their demands. In modern societ-
uct and brand copies as well as items features and service scope are hard to ies, with deregulated economies and
that do not benefit consumers, haz- justify. Some direct marketing prac- transactions, all market participants
ardous products threatening con- tices are harshly criticized as well, in- should be able to exercise their rights
sumersí health and physical integrity cluding collect calls to mobile phones equitably, but it should also be noted
are marketed by deceitfully overrat- that are both costly and intruding, or that not all concurring parties enjoy
ing their actual attributes. The envi- the pressure exerted by timeshare similar conditions, and so their indi-
ronmental impact of products and sellers. vidual responsibilities are different.
packagings is another source of in- Distribution management prac- Economic activity is meant to pro-
creasing concern. These behaviors re- tices also come into question when vide for individualsí physical and
flect a lack of fair-play, with practitio- channels are discriminated against or psychological wellbeing, serving so-
ners compromising their personal excluded, or when promotions ciety at large. When this happens,
values against business goals. change competitive conditions. Fran- consumers reward companies with
Pricing also involves some com- chising can become abusive if sup- their purchases; conversely, when
plex issues, including the application
of different schemes for customers
with similar conditions or higher
prices on the grounds of unreal supe- Pricing involves some complex issues, including the
riority. Deceptive pricing practices application of different schemes for customers with similar
also include product bundling or
overpricing to offer generous dis- conditions or higher prices on the grounds of unreal superiority
counts. The use of predatory pricing
practices is also questionable ñ so
much so that it is forbidden in many
markets. port services are not provided or businesses fail to deliver on their ob-
As regards communications, ad- terms are perceived to be unfair. ligations, a few may benefit to the det-
vertising raises other questions. With Market research may also lead to riment of a much larger customer
the use of powerful media, consum- controversial practices, disguising re- group. To prevent that, it is necessary
ers can be misled, and campaigns searchers as shoppers, masking sales to actively safeguard society from
that jeopardize societyís fabric by with surveys, or breaching confiden- some of the undesired effects of con-
showcasing stereotypes or harmful tiality agreements. Indeed, the unau- sumerism.
behaviors can be effectively thorized use of customer informa-
launched. Visual pollution as a result tion, the collection of confidential Caveat Venditor
of indiscriminately cluttering streets data on competitors and the utiliza- (Vendor Beware)
and outdoor areas with massive bill- tion of deceitful means to acquire This principle assumes that sellers ñ
boards and ads everywhere brings them, all account for unscrupulous and not buyers ñ are the experts on
additional community concerns. It is practices. Information management the products sold. Marketers build
not only the surrounding architec- has become a complex issue as a re- their entire operations around their
ture and aesthetic appreciation that sult of data and statistical tampering products, while buyers view prod-
are threatened: drivers are unduly and counterfeiting, both inside com- ucts as part of their multiple needs
and dangerously distracted while panies and in their communications and purchases. Therefore, experts
driving on highways. Furthermore, to consumers and markets. should be the ones to ensure that pur-
research has shown that people not chase decisions are properly made,
only devise mechanisms to ignore in- Consumer Rights minimizing error risks. If mistakes
vasive advertising but are also irri- Faced with this scenario, consumers did occur, sellers should own up to
tated by it and compelled to reject it ñ have rights that they cannot give up. them ñ even if they were not at fault.
yet another questionable practice ul- But the question remains: How can The rationale underlying this notion
timately backfiring. Flyers handed consumers fully exercise their rights, argues that sellers should watch over
out to pedestrians end up littering choosing freely their purchases and their customers first and sales next,
sidewalks and trampled by their in- ensuring that the products they buy as satisfied customers will drive busi-
SBM

nessí profits and growth with their re- and sellers gain lifelong customers ñ Marketing ñ A Human
peated purchases. as well as free advertising through Endeavor
word-of-mouth recommendations. This article started out with a vision of
Roads to Solutions Finally, market punishments in- business and marketing as a human ac-
Markets provide solutions on three clude fines and class-action law- tivity, in its role as cultural driver ñ an
levels for disgruntled customersó suits initiated by consumer groups. approach that engulfs and supersedes
damage prevention, restitution and These collective claims enable indi- all others. Based on a strictly technical
straightforward punishments. Pre- vidual plaintiffs to join forces in or- framework that focuses on the effective
vention steps include business or in- der to make their suits more valu- application of marketing tools, con-
dustry standards and codes, which able and interesting. Fines do not sumers should be responsible for their
intend to shape companiesí behavior need to be hefty, but they should be own knowledge, and marketers should
by instating a number of higher val- swift and reported to plaintiffs in not be expected to educate them, being
ues. Business practice codes are used order to show appreciation for tak- the work of social agents. From a more
to align practices across the different ing the trouble to file charges. Com- professional perspective, practitioners
sectors. Another means to prevent plaint books should be available to who believe in what they do are deter-
customer dissatisfaction is to provide customers at all times and be often mined not to trespass ethical bound-
consumer information on product examined, informing customers aries, abiding by current laws and step-
quality and quantity, safe consump- about corrective actions. ping up to safeguard consumer rights
tion conditions, and applications ñ in These solutions provide guide- as well. Their goal is to formulate prod-
short, any data required to acquire lines for business policies, in an at- ucts that genuinely benefit customers,
and use products safely. Business tempt to prevent, remedy or curtail contributing to their material and spiri-
communications should not merely harmful behaviors. However, they tual wellbeing, while addressing as
many predictable issues as possible to
ensure overall benefits.
Consumers are people, with feelings, families, jobs, histories, With a more human approach, mar-
keting practices will focus on con-
wishes, issues and changing needs. Business practices built sumer growth and the development of
around these notions are, by definition, more appealing to them, society, going beyond product speci-
leading to stronger and long-lasting ties – not to mention more value ficities and consumption conditions.
for shareholders This vision turns marketing operations
into a human endeavor that zeroes in
on people, contributing not only to
focus on persuading prospects but seem to substitute for a more com- their wellbeing but also to their indi-
also on offering useful information to prehensive marketer commitment vidual and social advancement. Thus,
potential consumers, describing to consumers, supported by a basic an aesthetic and social concern
productsí functionalities rather than view of customers as the center of complements the ethical dimension
extolling their abstract attributes. A business activities. Consumers are that rules behavior, providing a more
more informed, more sophisticated people, with feelings, families, jobs, complete, well-rounded notion of hu-
market effectively promotes better histories, wishes, issues and chang- man beings. As a result, marketing be-
product and service choices, natu- ing needs. Business practices built comes a means to pursue specific goals
rally casting deceitful competitors around these notions are, by defini- and expectations that drive peopleís ef-
aside. tion, more appealing to them, lead- forts, potentially enhancing their lives
Restitution measures imply ing to stronger and long-lasting ties and including aesthetic values, an ap-
money reimbursements to offset ñ not to mention more value for preciation for beauty in individuals
product flaws or to remedy other shareholders. On the contrary, iso- and things; social values, such as
causes for buyer dissatisfaction. lating customers will only lead to friendship, family and society, as well
Guarantees are included in this realm incomplete, inefficient and unsatis- as the use of free time to promote
and may compel sellers to accept the factory actions for both parties, ef- greater harmony. This approach to
return of used products, refunding fectively and unnecessarily re- marketing can offer more insightful
customers with no further argument, straining business operations to the knowledge and help to expand con-
product replacement attempts, or use of unsavory, irresponsible prac- sumer horizons. Indeed, marketing
credit for future purchases ñ custom- tices. As a result, the economy is practices aiming for higher human val-
ers get their money back in full. As a devoid of its human dimension, un- ues tend to be more successful and ef-
result, consumers do not feel that dermining the value of markets and fective, as they command greater ap-
their ignorance or neglect has been its constituents: consumers feel un- preciation and remembrance.
unfairly exploited. These mecha- appreciated, while marketing pro- © 2009 Guillermo J DíAndrea. All Rights
nisms afford a twofold benefit: buy- fessionals cannot find pride in their Reserved.
ers can fix their purchasing mistakes, jobs. Reference # 03M-2009-09-10-01

Motivations for Corporate
Citizenship
boundaries) have also been socialized
This article makes a politico-sociological attempt to analyze enough to agree to disagree (not really
the real factors that drive the apparently philanthropic notion of in consonance with Noam Chomskyís
Corporate Social Responsibility (CSR) or Corporate thesis of manufactured dissent).
More intellectual debates and criti-
Citizenship towards policy-level implementation and praxes. cal discourses at the social level of
Various reasons such as image-building exercises, politics have largely been a derivative
confidence-building measures, power politics, bargaining of development studies. The classical
studies on perverted development
strategies, negotiations and compromises, altruism, had led to the formulation of the met-
accountability towards the concept of Sustainable ropolitan center versus satellite analy-
Development (if not inclusive growth!) and Good (Corporate) ses that indicate that drainage of indig-
Governance are examined in the process. The article enous wealth and natural resources
from the South to the North has re-
tentatively concludes that CSR is rather situation-specific. sulted in a top-heavy model of so-
called economic development (Frank
1967 and Preston 1996).
C
SR or Corporate Citizenship level developmental choices in order Subsequent decolonization and
(also variously known as Sus- to institutionalize the best practices of establishment of post-colonial democ-
tainable Responsible Business social entrepreneurship and corporate racies in the South had only con-
or even Corporate Social Perfor- citizenship. firmed Frankís observations. Such a
mance) has steadily emerged as one This development towards new pattern of exploitation based on mer-
of the defining parameters of the en- possibilities has largely been made cantile/industrial/finance capitalism
tire arrangement of business strategy possible by the emergence of the Civil and culminating in cultural imperial-
since WWII. The concept of social Society (following Antonio Gramsci) ism logically led to the process which
welfare has been integrated with as the Third Actor that has moved has now come to be fashionably
business management for purposes away from the confines of both the known as globalization (following
that will be subsequently discussed State and the Market to create a dia- Immanuel Wallerstein and Eric John
in this article. logic space for itself that also caters to Ernest Hobsbawm).
But what is interesting at this junc- stakeholders (and not merely stock- But globalization has also been
ture is to appreciate how in fact these holders) interacting within and out- challenged by glocalization with a
divergent trends have been cohered to side the Public Sphere (following mantra championed by the World
generate new ideas and images in the J¸rgen Habermas) on the issues of Bank that urges us to ëThink Globally
marketplace of corporate politics that preferences, priorities and polemics but Act Locallyí.1 Added to this im-
has increasingly found it difficult to that tend to affect their politics of ev- perative are the Millennium Develop-
ignore the polyphony of voices and eryday life (Lehman 2001). ment Goals put forward by the United
choices underpinned by the need for What is rather important to under- Nations Development Program.
change management initiatives to- stand here is the fact that the Civil So- So the question remains: Is CSR a
wards societal benefit (Toenjes 2002). ciety has distanced itself away from proactive or a reactive development
The multiplicity of business choices the Market while citizens limited to that impinges upon the realities of so-
has to now necessarily conform to the political boundaries (or netizens with- cial markets? Citizens and consumers
obtainable arrangement of community out any such foreseeable or apparent have equally learnt to say no and look
1
ìClearly, globalization, democratization and decentralization go hand-in-hand. As they do, they create new opportunities and new risks for all actors, including
those who act at the subnational and local level. In effect, globalization and democratization create a greater incentive for effective policies and management than
ever before and, as an inveterate optimist, I believe that the discipline they impose is a valuable instrument which will over the long haul ensure that national and
subnational authorities behave more sensibly. The lessons we can draw from experience, as to what makes for an effective intergovernmental framework and for
efficient subnational government are useful in that they can help reap the benefits from globalization more quickly and may help avoid the risks that globalization
also poses. As we enter into the discussions of the next two days I would encourage us all to ëthink globalí, but to focus on how we can more effectively ëact localí.î
(Quoted from the speech delivered by Johannes F Linn, Vice President, Europe and Central Asia Region, The World Bank, at the Global Conference on Capital
Markets Development at the Subnational Level in New York City on February 16, 2000.)
Motivations for Corporate Citizenship
elsewhere for viable alternatives while self of the worker from the otherness understand that economic profits in-
the rapid expansion of the Develop- of his/her produced outputs, dissocia- crease with an expansion in social and
ment Sector has also ensured that tion of the creative psyche from the cultural investments because popular
Community-Based Organizations, produced entities, disjunction be- trust and favorable perceptions are
Civil Society Organizations, Voluntary tween labor and wages etc., are sought then associated with the companyís
Organizations and Non-Government to be rationalized in an arbitrary and products and promote sales in this
Organizations have gradually become ex post facto manner. process (Elkington 1994 and
sensitized to the intricacies and spe- The methodology deployed in this McClintock 1999). But this entire pro-
cifics of various multi-stakeholder dia- article conjoins content analyzes, cess has to be sustainable and decided
logues that happen to inform the very theoretical constructs, historical/ar- on the basis of viable business op-
fabric of consumerist societies and chival data mining and analyses of the tions.
commodity fetishism (following Karl given primary facts in the intellectual So the issue is nearly all about fus-
Marx). framework of meta-narrative and post- ing the identity of products (brand eq-
So the war is now principally fo- modern historiography. Case studies uity) with the public image of the com-
cused on the mind and market rather have been investigated and contempo- pany. The concerned company would
than territory and matter because cul- rary theoretical baggages/underpin- ensure a steady level of profits and
tural imperialism as the new form of nings critically gazed at in order to un- more once this is achieved. The ques-
colonization has invaded the sanctity derstand the neoinstitu-tional and tion is really very simple: how can a
of the Self by creating the deprived hegemonistic trappings of corporate company integrate its business objec-
Other. The sale of a product as innocu- power that happen to inform CSR tives with its altruistic image for the
ous as Coca-Cola globally has pro- while not at all reorienting the critical purpose of increasing profits? CSR
voked critics to come up with the con- and traumatic relationships between lends itself to a multiplicity of expla-
cept of Coca-Colonization that simply individuals/beneficiaries (?) and their nations in this regard as would be evi-
implies taking the world by storm institutions/benefactors (!). dent in the course of this article.
while equipped with the American This apparently difficult task is
cultural baggage that in itself is both a CSR Politics simplified once a business enterprise
social as well as a power statement The politics that more often than not makes inroads into a market by insti-
(Amba-Rao 1993). happens to inform the politics of CSR tutionalizing its business ethos vis-‡-
is multidimensional in character and vis the society and the multiple com-
Hypothesis / Methodology multilayered in its impact. It is some- munities. The Tata Group of Compa-
We propose in this article that CSR as what similar to the politics of aid nies in India is a potential example
a corporate strategy is fundamentally a when donor countries or funding or- that readily comes to mind in this con-
dynamic policy mechanism that facili- ganizations from the North extend fi- nection: the Tatas have always pro-
tates better business profits by project- nancial support to the South in ex- jected a sense of responsible and so-
ing the broad-base social profits accru- change of disguised Structural Adjust- cially committed business in a coun-
ing to the vulnerable communities ment Programs (Bennett 2002). try like India by investing consider-
who get disproportionately affected by The ostensible reason for extend- ably in the area of social infrastructure
the processes of mass-scale industrial ing grants or aid (not loans) is humani- development.
production. tarian in its scope and approach but A modern city like Tatanagar has
Adverse impacts of degraded envi- the real reason is somewhat different. emerged around the Tata Steel and
ronments, toxicity in the air / water / So a soft drink company from the Tata Motors factories while the Tata
soil due to pollution, alienation of the North may well sponsor a safe drink- Institute of Social Sciences, Tata Insti-
ing water project in a village from the tute of Fundamental Research, Tata
South and then start marketing its Energy Research Institute (now
Dr. Prasenjit Maiti presently teaches at the product after having established a pro- known as The Energy and Resources
Indian Institute of Social Welfare and Business people / pro-poor image. This is noth- Institute) and Tata Memorial Hospital
Management (Public Systems Management ing else but vicarious marketing that is are a few important institutions in In-
and Human Resource Management
cloaked as ethical and responsible dia in the public domain that owe
Departments). He was working till recently as
business practices (Jackson 1993 and their inception and inspiration to the
a Guest Professor at the University of Southern
Moriarty 2005). Tatas.
Denmark. He has written three books till date
The debate whether multinational The general perception in the
on the problems of Governance, Development
and Ethics. He has also edited Volumes on
corporates should at all involve them- popular psyche is that any commodity
Social Capital, Rural and Urban Development selves in social expenditures is rather and / or service that has the Tata brand
as well as Environment. His latest Edited old. A certain school (following associated with it in any way would be
Volumes were on the Puzzles and Polemics of Milton Friedman) has steadfastly of endurable value. Tata Consultancy
Development as well as Corporate Citizenship maintained that business should only Services and Tata Indicom are next
/ Social Responsibility. be concerned with making profits. But generation companies of this group
modern business is smart enough to that has steadily evolved with the
times by not wavering from its core Monitoring and evaluation indica- putting the right foot forward by iden-
business values. Now Ratan Tata has tors may be both quantitative and tifying the areas that require the first
come up with his peopleís car (Tata qualitative in order to include process attention of the company in order to
Nano) that is affordable while at the indicators, progress indicators and carry the community together along
same time is also profit making for qualitative indicators. These indica- the direction of participatory decision-
Tata Motors. So the idea is to portray a tors provide data inputs to monitor the making and profit-making efforts.
philanthropic image by targeting project, evaluate progress of engineer- The company has to be seen to de-
niche markets that would still ensure ing works and guide the corporate liver social goods and services. This
corporate profits while expanding the managers to ensure and safeguard effi- visibility factor assumes supreme im-
bases of the companyís social accep- cient use of valuable and limited re- portance in the face of dogged resis-
tance (Booth et al 2000). sources. tance posed by activist and pressure
Monitoring and evaluation indica- groups that militate on grounds of sus-
Monitoring and Evaluation tors may also determine the magnitude tainable environmentalism and inclu-
Monitoring is the systematic collec- of project impacts on the quality of life sive growth. It is true that natural re-
tion of primary data to provide the of beneficiaries before and after imple- sources would be depleted and envi-
corporate management and primary mentation of civil works. Such indica- ronmental pollution would take place
stakeholders with an indication of tors can also examine the increased whenever industrial production on a
project progress. Evaluation is the me- level of civil society participation and large scale commences in any given
thodical and objective assessment of awareness generation in terms of CSR- area. But the basic idea is to initiate a
an ongoing or completed corporate related project interventions. process of consultation with the com-
project, including its design, imple- munities concerned from the angle of
mentation and results. Why CSR? benefit mapping exercises (Gray et al
Evaluation leads to more informed The basic discourse of CSR makes an 2006). The idea is to convert pedagog-
decisions, allowing those stakehold- attempt to conjoin the market with ics to deschooled and decentralized
ers/stockholders involved in the civil society by making business more decision-making.
profit-making project to learn from ex- responsible and the community more
perience and to be accountable to responsive towards the realities of Benchmarking CSR
corporates and stakeholders alike on profit-making ventures that have to CSR can be ideally benchmarked by
the basis of identified best practices. compete with one another in the criti- putting into place several benefit
Both monitoring and evaluation cal area of social dynamics as well. It is monitoring and evaluation strategies
should be used to demonstrate ac- the question of allowing the disadvan- at different life cycles of the
countability and to understand the taged and underprivileged adversely companyís social interventionist exer-
dynamics of the project.2 affected communities ëspeak outí, so to cises. The different stages and angles
Willingness to pay underscores say, in the great carnival of Multina- of CSR benchmarking can be under-
the anticipated revenue earnings of tional Corporations and their profi- stood by the model given in Exhibit I.
the corporate management in terms teering discourses (Spivak 1988).
of user charges and fees so far as op- The concerns before CSR are in Ideational CSR
eration and maintenance of civic/ terms of challenges posed by poverty, The idea of CSR can be explored in its
infrastructural assets are concerned. malnutrition, unemployment, illit- tradition of responsibility and ethos of
Better supervision of existing infra- eracy, corruption, lack of accountabil- social commitment. It is as if CSR tries
structure indicates optimum utiliza- ity/transparency, imperfect imple- to achieve an egalitarian social order
tion of manpower presently available mentation of projects and skewed de- as best as it can and thus comes into
i.e., streamlining human resources livery of benefits, socioeconomic-cul- conflict with the basic goals of corpo-
and avoiding incurrence of non- tural infrastructure and preconceived rate entities. But the idea can also be
merit expenditures (free rider subsi- notions/mindsets (Edmunds 2003). found in the larger issue of moral
dies) in this process. Such bench- The challenge is to decide upon a har- ecosophy where deep ecology and
marks examine the value for money monious and presentable order of so- philosophy come together to question
concern of good corporate gover- cially committed business. the political and even human right-
nance as a central issue of sustain- Management strategies are put to ness of the morality of large-scale pro-
able development strategies drawn test while transforming these threats duction systems.3
by stakeholdersí consultation/partici- into opportunities and weaknesses So even CSR as a concept can be
pation and mobilization/information. into strengths. It is also a question of categorized as Marxist, Green, Femi-
Benefit mapping of CSR projects in
terms of new infrastructure created is 2
See Handbook on Monitoring and Evaluating for Results (New York: UNDP, 2002) in this connection.
also an exercise related to physical 3
ìPolitical ecology does not amount to a new program for intellectual deforestation, rather it is a historical
progress measurement of engineer- outgrowth of the central questions asked by the social sciences about the relations between human
society, viewed in its bio-cultural-political complexity, and a significantly humanized nature. It develops
ing interventions and designs at the the common ground where various disciplines intersect.î See James B Greenberg and Thomas K Park,
ultimate level of implementation. ìPolitical Ecologyî, Journal of Political Ecology, Vol.1 (1994).

Exhibit I: CSR Benchmarking Model are transmitted to the right people at

the right moment.
Stage Angle Beneficiary Method Outreach CSR requires hard-headed policy
Communitarian Community Primary Participation Local decisions that are ruled by reason and
not passion. Compassion may influ-
The company fundamentally consults with the concerned communities
ence the entire process but only in a
Civil Societal Civil Society Secondary Consultation Regional strict rational sense. For social work
The interactive dialogues engage larger audiences also requires professionalism and ex-
perts to deliver the goods and services
Institutional Institutions Tertiary Intervention Global
to the people if the company is at all
The smaller and larger audiences now share a common understanding interested in doing so and expresses
sufficient goodwill in this direction.
nist, Pink, Black etc., depending on bility towards racial minorities who It is basically an egalitarian social
the people practising it and the people have been exploited disproportion- exercise by delegating specialized as-
for whom it is being practised.4 Marx- ately since time immemorial when co- signments to the technical experts
ist/ecosocialist CSR would stress more lonial capitalism and slave trade had who can take care of contingent situa-
upon an equitable Mode of Produc- their heydays. tions and deliver the professional ser-
tion that would entail a just vices that help to identify the Unique
(re)distribution of the surplus value Pragmatic CSR Selling Points of CSR (Harmon 2004).
being created by labor that is irretriev- But CSR is really much more practical For CSR (following David Easton) has
ably alienated from the process, cre- than it appears. It has to factor in strat- now become essentially an authorita-
ative joy, forces, techniques and tools egies and negotiations of rapport- tive allocation of social values in order
of production. building with the community, civil so- to reorient the balances of power and
Green CSR would necessarily ciety, multi-layered governments, ac- benefits in any given society/commu-
highlight the need for eco-friendly tivists and media. At all levels the nity. The myopic vision of business
business practices that also take into message has to go through rather applications has to now outgrow itself
account the overall depletion of the clearly and distinctively that the com- and assume a new language in the
physical environment and try to make pany has spent a lot of resources in context of different signifiers and radi-
amends for the same by way of com- designing and implementing its CSR cal signifieds that lend themselves to
munity forestry, joint forest manage- mechanisms. technically new interpretations.
ment, eco-clubs, nature trails and CSR has to be not only dialogic but
similar ventures at the collective level also pedagogic in that others should CSR and Images
by co-opting both the natural and the perceive the company as having in- The Bill and Melinda Gates Founda-
built environments as stakeholders of vested considerable intellectual and tion, Sir Dorabji Tata Trust, Ratan Tata
corporate growth and organizational technical inputs into the operationali- Trust, Azim Premji Foundation,
development in any given context of zation of its community facilitation Rockfeller Foundation etc., are a few
production. Ecologically sensitized and liaison enterprises. The ìgood examples of CSR praxes in India and
CSR practices would have to necessar- workî done has to be suitably pack- abroad. 5 As Nagavara Ramarao
ily focus on the cutting edge of re- aged and presented before everybody Narayana Murthy of Infosys Tech-
search in sustainable environmental- and posted on the companyís interac- nologies had once expressed the opin-
ism in order to transmit the correct tive website so that the right signals ion that beyond a point wealth has to
messages to the correct markets.
Feminist CSR essentially views the 4
ìIf ecosophy is to be a science, it is a value-laden one. If it is literature, it is an experimental genre that
primary stakeholders as the ëalienated knows our language is presently not prepared to speak emphatically of our link to what surrounds us. If
otherí that has been penetrated by the it is politics, it tends toward the utopian. Those of us in the midst of it do believe ideas can change the
world. And we are constantly reformulating, testing, expressing, looking for more roots and branches of
corporate stockholders/shareholders these ideas in the past, the present, and the future of cultures all across the globe.î See David Rothenberg
and fights for an engulfment of the (1994), ìBeyond Back to Nature: Ecosophy Reinvents Itself as Alwaysî, Trumpeter 11(3).
same by establishing a regime of equal
5
ìHealth researchers have questioned the funding decisions and priorities of the Bill and Melinda Gates
Foundationís multibillion-dollar effort to improve global health. The Gates Foundation, the worldís largest
rights and responsibilities. The philanthropic initiative set up by software czar Bill Gates and his wife Melinda, has committed nearly
worldview in this case is based on the $10 bn (Rs. 49,290 cr over the past decade to organizations worldwide. It supports projects to make
treatment for HIV, malaria, TB and other diseases available and to deliver vaccines against life-threaten-
notion of exploitation and a tradition ing infections. It also funds research aimed at introducing innovations in medicine. But two groups of
of lopsided power-sharing dynamics researchers have said that the Gates Foundation is focusing on technology-based solutions, such as vac-
cines and drugs, and not investing enough to promote simpler, proven alternatives to tackle the health
(Gilbert 1986). problems of the poor. The researchers have acknowledged the foundationís role in dramatically increas-
Pink CSR assumes a somewhat di- ing resources available for global health. But, in papers published in the medical journal Lancet, they said
that much of the foundationís grants go to western institutions and limited funds are available to build
luted socialist approach while Black capacity for improving healthcare in developing countries. David McCoy and his colleagues from the
CSR again takes up cudgels on the University College, London, have cautioned that the foundation, through its influence on health policy
networks and think tanks, may be indirectly undermining the decision-making capacity of health minis-
grounds of ethnicity and claims that tries in the developing countries.î See GS Mudur, ìGap in Gates Giveaways - Health Researchers Ques-
corporates owe much more responsi- tion North-South Divide in Fundingî, The Telegraph, p. 1, 12 May 2009.

TMB

be used meaningfully for social pur-

Exhibit II: CSR Image Building Model
poses, CSR primarily seeks to reinvest
business profits into the mainstream Commitment to a Accountability to the Environment Initiative on a Local Basis to
of institutions and individuals called Higher Moral Order and Ecology, Sanctity of Human Life Conform to Global Standards
society to promote images and en- of Business and Labor (both Physical and
trench images of responsible and Intellectual), Responsibility towards
committed business (Hill 2005 and the Systemic Mode of Production
Hill et al 2007).
But even image building exercises Change Management in order to Ensure Consonance with Social and Business Profits
comply with the regime of priorities
Innovation as Capital Transparency and Sociability to Compulsions of Competition
and preferences and notions of power
Socialization as a Creatively Outgrow Images
superiorities. How to spend CSR
funds thus becomes a question of po- Good Corporate Governance1
litical equations and multifaceted Resource and Participation and Dialogues and Tradition of Responsible
games played out in the uneven arena Sustenance Pedagogics Business
of globalized markets in the name of
fostering multi-stakeholder dialogues 1
Good governance parameters include participation, consensus, accountability, transparency, responsiveness, efficacy,
(Hsieh 2004). The image building en- equitability, inclusiveness and the rule of law.
terprises of CSR projects can be better
understood in terms of the model for- nomics of capitalist power or even the to gender empowerment for a certain
mulated in the Exhibit II. archaeology of meta-knowledge. The se- section of the community. This may or
mantic analysis of corporate learning is may not lead to the formation or facili-
Corporate Ethics an ontologic exercise that cannot be un- tation or even enhancement of the
The issue of corporate values con- duly coerced by the versatility of available stock of social capital so far
joined to the various narratives of cor- multicultural complexities or pluralist as the target groups among the com-
porate citizenship is more often than developmentalist politics. munity are concerned. New culture
not predicated by the choices and pri- We have to appreciate the fact that root paradigms may get entrenched in
orities of infrastructure augmentation the overall dynamic of ethical busi- this critical process as functions of
and enhancement of physical assets ness applications cannot really be un- new societal arrangements and per-
for public/welfarist purposes. The pri- dermined irrespective of whatever ceived specifics of realigned identities
orities of ethical choices applied to the value connotations development may and different matrices of power. Such
sanctity of sustainable human devel- subsume at different stages of infra- may be the case when new local mar-
opment and inclusive growth emerges structure augmentation projects that kets are sought to be explored in the
as a critical policy imperative in the happen to impact different categories face of established global markets.
larger discursive context of moral of stakeholders in variant magnitudes Such a state of affairs would re-
emancipation. This leads us to the and qualities. quire new institutional networks that
larger and more problematic question may work in a milieu of change man-
of human rights when considered Ethical Business agement predicated by sustainable de-
from the angle of societal civil liberties Applications velopment alternatives. This necessi-
supported by CSR initiatives. How Redefining stakeholder entitlements is tates a new regime of discourse of dy-
ethical can community development a process that intrinsically challenges namic CSR where the terms beget dif-
ultimately become when analyzed in predominant corporate assumptions ferent signifiers and alternating
the light of assumptions informed by in the context of growing pressure of signifieds. Voices and choices of the
corporate hegemony and the power/ population and fragmentation of ur- people would become confused other-
knowledge discourse that is inspired ban resources. New material condi- wise in a cacophony generated by the
by the productive forces of the capital- tions of life are reoriented and differ- multitude or the Tower of Babel of cor-
ist mode of production? ently molded in this process. Lesser porate policy alternatives. Such an
So sustainable development payoffs in terms of minimum tangible overwhelming otherness would sub-
championed by CSR efforts often ap- benefits to primary stakeholders may sequently provoke dystopic and dys-
pears to be a panopticon construct take place as a direct spin-off of the functional social pathologies that
(following Michel Foucault) that is co- multiplying poverty reduction pro- would be without any incipient tenets
hered by a gaze that is transnational grams. This is somewhat similar to the of hospitality whatsoever (following
and transcommunal in its very scope, diminishing marginal utility of con- Jacques Derrida).
rationale and purpose. sumption and over-utilization of re- Systemic compulsions of the new
Human development under- sources that finally lead to consumer international economic order ushered
pinned by corporate citizenship can satiety. in by the World Trade Organization
never emerge as a value-free project that Poverty alleviation initiatives and and the General Agreement on Trade
is not conditioned by the microeco- income generation measures may lead and Tariff may be viewed as in-built

disruptions that only add background caused by differing axes of participa- giously maintain their immigration
noise to disturb channels of communi- tion and priorities conditioned by dy- barriers and discourage agricultural
cation between the social market and namic variables such as knowledge, imports while most poor countries
the political consumer who is pre- attitude and perceptions. have not been quite successful to at-
pared to utilize significant and limited We may increasingly appreciate tract much Foreign Direct Investment
resources in order to access utilities. that globalization is not only about due to misgovernance on the part of
Depleted capacities of primary stake- processes but also about mechanisms their national governments. Rich
holders occur as a result of the sys- that impact our daily lives and the countries, however, may as well con-
temic imperatives of globalization and manner in which we would prefer our cede that CSR politics is a fundamen-
CSR. lives to be impacted upon. This con- tal informant/evidence of economic
tention may appear to be somewhat ir- inequality since they are not likely to
Responsible Business reverent and irrelevant but is merited lower their agricultural and immigra-
Populism is another disabling factor with a certain quality of objectivity as tion barriers in the near future in or-
that plagues the ideology of CSR. We well. So the nuances and criticalities der to facilitate protectionism at
come across business policy decisions of existence become all the more diffi- home. Rich countries may also re-
that are not commercially tenable in cult to negotiate while rooted in one view the performance of the Wash-
the market but are implemented nev- single destiny conditioned by one ington Consensus, which assumes
ertheless due to the compulsions of given and preordained order of corpo- that free markets necessarily promote
so-called pro-people and pro-poor rate values. We require more values economic convergence and under-
politics that is not akin to dynamic
CSR strategies. Local actors may be
able to reorient a new brand of corpo-
rate politics in their favor by manipu- We may increasingly appreciate that globalization is not
lating primary resources available at only about processes but also about mechanisms that impact
the grassroots. But we have to deal our daily lives and the manner in which we would prefer our
with local as well as macro-level cor-
lives to be impacted upon
porate politics simultaneously in or-
der to coordinate between the com-
pulsions of subalternist and elitist
power approaches. and non-values in order to co-habit scores important issues such as the
The CSR approach to social reali- with more meanings and more non- rule of law, property rights and trans-
ties may ultimately serve to restore the meanings. So it is merely all about parent banking systems to sustain
community at the center of its devel- conjoining abstract signifiers with dialogues between the North and
opmental focus but at a significant concrete signifieds as the fashionable South.
cost. This cost is the one incurred dur- glocal way of life. The dynamics of CSR are more of-
ing informed exercises pertaining to The contemporary processes of ten than not perverted by the First
social choice. So it appears that the in- globalization do not only happen to Worldís studied reluctance to apply
cidence of poverty and the eradication constitute polemic engagements with identical standards of laissez-faire to
of poverty are often to be studied in a laissez-faire utopianism because of its borders and imports that it tries ñ
context of change management. the political specifics available in the with varying degrees of success ñ to
Contemporary social realities First as well as in the Third Worlds impose on the Third Worldís legal
would suggest that poverty becomes but that most of the benefits of global- structures and political arrangements.
institutionalized as a phenomenon in ization also accrue to the First World New global bodies such as the World
the interest of powerful corporate ac- because of its dominant policy to re- Social Forum have also emerged in the
tors who are able to obtain the maxi- sist laissez-faire market arrangements recent years to meaningfully negotiate
mum mileage out of the sense of rela- in the movement of goods and ser- with the World Economic Forum and
tive deprivation that afflicts civil soci- vices and labor forces around the its politics of hegemony that extends
ety. Poverty is also a function of social world ñ especially into its domain ñ to identities, cultures, languages, ma-
asymmetry. and its sustained opposition to the terial conditions of life, ethnicity, so-
This is due to the fact that social norms laid down by the Washington cial baggages, epistemology (knowl-
clusters are located along the eco- Consensus. 6 Rich countries reli- edge) and ontology (existence).
nomic hierarchy in different degrees
of embeddedness. Public action and 6
ì The Washington Consensus as I originally formulated it was not written as a policy prescription for
civic engagement in an enabling cor- development: it was a list of policies that I claimed were widely held in Washington to be widely desir-
porate environment may or may not able in Latin America as of the date the list was compiled, namely the second half of 1989. Of course,
development was the main objective of the countries in question; the point is that my agenda excluded
entrench channels of cooperation policies even if I believed they would promote development unless I was also convinced that they com-
among primary stakeholders. Such manded a consensus.î Quoted from a lecture (ìThe Washington Consensus as Policy Prescription for
Developmentî) delivered by John Williamson in the series ìPractitioners of Developmentî at the World
vertical divisions among society are Bank on January 13, 2004.

Corporate is Social Social Capital utilitarian terms? You would benefit

May we now shift our polemic stance The popular understanding of Social if I am truthful while I would gain if
somewhat to reflect that CSR-in- Capital as an embedded civil societal you are honest. We can translate and
duced development may not always resource supported by networks of extend this notion into areas of Cor-
lead to freedom? Basic human rights trust and cooperation should be ana- porate Good Governance such as ac-
(if guaranteed by CSR strategies) may lytically conceptualized here in or- countability and transparency. The
lead to capacities on the part of citi- der to locate the altogether intrigu- social structure as a whole has a de-
zens/netizens. But what about capaci- ing notion of corporate ethics in its velopmental stake rooted in the in-
ties that do not sell at the globalized proper intellectual discourse. Social tangible yet immensely valuable re-
marketplace? If globalization, on the Capital is more often than not under- source of Social Capital. This argu-
one hand, facilitates decentralization pinned by manufactured (or else ment is substantiated in the case of
then, on the other, it also helps de- fractured) consent that in itself is corporate ethics.
velop pockets of dynamic Free Trade conditioned by parallel movements
Areas in large developing countries of power and culture identities. Conclusion
like China and India by reorganizing What is trust and how can the in- CSR-induced development, it may
their economic geography, Foreign tangible value of trust be defined by be appreciated at this point, is not
Direct Investments and global com- cooperation and multiple axes of so- anything extrinsic like politics im-
modity supply chains. cial synergy that is cohered by an posed from the above without any
This process, however, creates equally unquantifiable category regard whatsoever to the end-users
large hinterlands of economic back- called enlightened corporate self-in- of limited socioeconomic and politi-
wardness and entrenches economic terest that is variously known as cal resources. Actors who are sup-
inequality within the developing faith? posed to interface with their very
South. CSR-induced development,
therefore, intensifies regional dispari-
ties within the Third World. The so-
called Internet Revolution is indica-
CSR dialogues are expected to facilitate cross-sectoral
tive of the hegemonistic battles
waged on a daily basis around the stakeholder commitment and involvement in infrastructure
world with reference to critical dis- development projects
courses of production, consumption,
distribution and exchange. The
World Wide Web was originally de-
signed as a virtual space to permit ef- The comparative value of trust own institutions are nearly always
ficacious and intuitive transfer of when measured against infidelity better comfortable if left alone with
data across an array of proprietary may be quantified in order to under- the material conditions of daily life
networks but it is now generally de- stand why people sustain a working that breed organic ethos of commu-
ployed to intensify uneven power re- stock of Social Capital at the market- nity existence. This is where the co-
lationships. place of CSR, in politics, public of- lonial masters went wrong in Asia,
fices and the government or else- Africa and South America when
Multi-Sectoral Dialogues where where interactions and insti- they bled the colonies white and left
CSR dialogues are expected to facili- tutions come together to define vari- behind a legacy of comprador bour-
tate cross-sectoral stakeholder com- ous interfaces of the public domain. geois and crony capitalism that, in
mitment and involvement in infra- To disown my neighbor in his/ turn, fostered a repressive state ap-
structure development projects. Such her hour of need or crisis may not be paratus and a perverted anti-people
dynamic interactions may also con- quite a wise policy when located in a bureaucratic managerial state sys-
tribute effectively to streamline timely broader temporal perspective. But tem that was not only anti-people
implementation of the physical works the problem with rational consum- but was also occasionally anti-
of development projects. Stakehold- ers interacting at the level of the mar- progress. So CSR politics is largely
ersí involvement in terms of public in- ketplace of CSR politics is that they similar to the distressed Sphinx that
formation and consultation exercises are not always endowed with the gift appears enigmatic without any mys-
may extend to the generation of aware- of foresight that in itself is an asset tery and that is also rhetorical with-
ness about the proposed physical conditioned occasionally by experi- out any enabling strategic figures of
works under different CSR-driven ence i.e., acquired social knowledge. political speech.
projects, active participation at the de- Why is the notion of Social Capi-
sign stage and propagation of knowl- tal relevant at all in our community
edge with regard to the timely imple- life informed by CSR initiatives? Is © 2009 Dr. Prasenjit Maiti. All Rights Reserved.
mentation and cost-effective manage- this because it is a useful and practi-
ment of project activities. cal idea that is mutually beneficial in Reference # 03M-2009-08-11-01

ECGC

I N T E R V I EW
HR, anywhere and everywhere needs to be sensitive to all situations, but proactive
and swift. People in HR need to understand and balance their skills between two
sets of needs – those of the individual employee and those of the company as a
whole. Most HR departments play a major balancing role between these two, to
seek out the most effective and least painful method.
– Tapan Mitra
INTERVIEW
As financial meltdown has weed out the companies which had that have been most impacted are
turned into global economic cri- not managed themselves well during those which have a high exposure to
sis, the human cost in terms of the good times. Going by the past few the US economy like IT services.
lost jobs and displaced workers months, I do not expect massive politi- However, others like the hospitality
is growing at a terrifying pace. cal or social unrest due to this. Gov- businesses, infrastructure develop-
The International Labor Organi- ernments across the world have been ment, high-end or export-oriented
zation (ILO) predicts that 38 mil- taking proactive action to try and businesses like gems and jewelry will
lion people around the world minimise the pain on the average suffer more than others.
could lose their jobs this year workers. The steps taken by each gov- In terms of Indian business, we
alone, sending unemployment ernment are intrinsically linked to have once again surprised ourselves
rates in Europe and the US into their governance policy and therefore with our ability to be agile and adjust
double digits for the first time in the way we have been addressing this quickly. Majority of our businesses
years and slowing ñ or in some in India is going to be quite different had taken on themselves efficiency
places reversing ñ the massive from say how the US or Chinese gov- enhancing and cost cutting drives at
jobs growth of recent years in ernments tackle them. These are times an early stage, preparing themselves
Asia. What would be the political when all parties have to come together well for the tougher days ahead. How-
and social consequences? How to take collective decisions and a time ever, I do have to say that in India, we
should governments, companies when labor unions need to keep long are blessed with a large, diverse and
and labor unions in countries term interests in mind. growing domestic market which cre-
across the globe address this is- What is your assessment of im- ates a certain buffer for us during a glo-
sue? pact of US financial crisis (global bal downturn.
As we can see in hindsight this was a financial crisis) on India? Which As Chief of HR at Apollo Tyres,
cycle that was waiting to happen, sectors/industries do you think whatís the plan of action to man-
given the high growth rates and the are affected most and what are age through the crisis? Any lay-
over extending of nearly all financial your perspectives on the way In- offs?
and economic facilities that had taken dian companies are managing Our people have voluntarily taken
place since the early 1990s. This is a this unprecedented downturn? lower perks for two quarters to ensure
correction; yes an unfortunate one, Given that the US is the worldís largest that the company remains profitable.
but a correction that needed to take economy and closely linked to eco- It has been difficult, but as Chief HR
place to ensure sustainable growth nomics across the world, an upheaval my and my teamís role becomes easier
across economies. While the implica- in the US has far-reaching conse- when people themselves are willing to
tion of this on jobs could be dramatic, quences. In countries like India, the take collective decisions to ensure a
especially in the developed nations, strengthening of the dollar has had an better future. At Apollo the culture of
what this downturn would also do is immediate impact. Also the sectors teamwork and looking out for the
greater good is very high, which has
always worked in the companyís fa-
Tapan Mitra as Chief of Human Resources, and his team have been instrumental in developing
vor. I feel, in many respects, this gives
robust HR systems and processes in the company, focusing on performance management,
leadership development, market-driven compensation structures, job classification, competency
us an edge over other companies. No
management, team building, and talent development, ensuring healthy employee relations and we have not had any layoff, however
high levels of employee engagement. He is also responsible for the successful integration of HR the normal practice of non-performers
processes with any acquired entity. His leadership has enabled Apollo to move to the next level of being weeded out of the system con-
people development and performance management. tinued to take place. Our focus has ac-
Tapan Mitra joined Apollo Tyres in early 2005. Prior to that he was with Ballarpur Industries Ltd. tually been on redeployment and pro-
(BILT), where he was Vice President, People Development and Communications. He began his duction management to keep man-
career as a management trainee with JK Papers in 1977, moving on to Voltas Ltd., and then to power costs low, rather than layoffs.
BILT. He has worked both at the plant and corporate HR in these organizations. International exposure Recently, when the UK arm of ac-
with institutions like INSEAD, IMD, Centre for Creative Leadership, and Saville Holdsworth Ltd., counting firm KPMG asked its
have further complemented his in-depth functional knowledge. staff if they would be willing to re-
Schooled at St Xaviers Delhi, Tapan Mitra is a Delhi University Gold Medalist and National Scholarship duce their workweek ñ and
holder and has a postgraduate degree in Sociology from the Delhi School of Economics. He is thereby save jobs ñ in the event
actively associated with HR platforms at CII, National HRD Network, All India Management that business dried up, an over-
Association, National Institute of Personnel Management, ASSOCHAM and the Conference Board, whelming 85% signed on. Prob-
apart from being a guest faculty in leading management institutes.
ably, the deal is a first for a British
An ardent photographer, he enjoys reading and listening to western music. He believes that a true financial services firm. Itís un-
"people's manager” needs to be adept at handling interpersonal relationships and be able to likely to be the last. A recent sur-
communicate with clarity across organizational hierarchies. Equally important is the ability to
vey by Watson Wyatt finds that al-
address employee concerns in a proactive manner.
most one employer in ten intends

INTERVIEW
to shorten the work week in com- tices? In fact, OECD expects un- nies to continue to save jobs even
ing months. What are the merits employment in Germany to rise when they are bleeding from the
and demerits of this job saving from its current 8.6% to 11.5% by downturn bruises?
scheme? the end of 2010 ñ higher than I agree with your argument, however
This is the best way forward. Layoffs many of its European neighbors. in any nation jobs are a very sensitive
do not always work in a companyís Japanís unemployment rate is ex- issue and needs to be handled with a
favor. It might seem easy to ask pected to rise, although less dra- lot of sensitivity. I will not be right on
people to leave but even that has a matically, to above 5.5% next year my part to comment on either of these
short term cost in terms of financial from 4% in 2008. two cases since I am not familiar with
outgo. Also, often in the process of As I have mentioned above, each exactly how they were handled inter-
layoffs, a certain number of the best governmentís response will be shaped nally, what was said, how it was un-
performers tend to depart which is by two things. One, the crisis and its dertaken, what the individual and
not desirable. Also, remember bad potential fallout. And two, governance community level communication
times are not going to last forever. So policies and needs of the situation. was, were all the regulatory authori-
when the economy begins to pick-up, Given the diverse countries across the ties and the unions taken into account,
we will all need those who left. At world, there really cannot be a single etc., ñ all these play a role. At the end
that point to get back the trained formula which everyone can follow. of the day, two parties need to find
manpower, who had been aligned OECDís chief economist, Klaus ways to work towards a solution
with company goals and philosophy Schmidt-Hebbel argues forcefully which minimises the pain across the
is difficult. There is then a high cost that governments should do more board. We have seen across history
that we would need to pay for hiring to retrain workers and overhaul that unilateral decisions favoring only
and training. Job saving schemes, like their labor-market policies to en- a single party do not have a high shelf
what we did at Apollo Tyres, is the sure that once recovery comes, life.
best way forward, wherever possible. new jobs are created in sufficient What do you think should be the
Two countries standout as having numbers to swiftly bring the job- greater and broader role of gov-
the most developed and system- less rate back down again. ernments in such situations?
atic approach: Japan and Ger- I agree. Actually all parties have a role Should they adopt job-preserva-
many, which both provide gov- to play in situations like this ñ the gov- tion-schemes or should they con-
ernment subsidies to companies ernment, companies, unions, employ- centrate more on job-creation-
who keep on workers even though ees and even the financial or banking schemes?
thereís little or no work for them system. How effective the impact will As you have seen with the Indian gov-
to do. Both have recently extended eventually be is a direct fallout of coor- ernment, our focus has always been
their schemes. What is your as- dinated action amongst all these di- on job creation. These have come in
sessment of such a tacit support verse groups of people and systems, many ways, rural schemes, incentives
from government? Do you see swiftness of action and proactive play. to industries to move to backward ar-
merit in this approach or do you Even though it is one of the possible eas, state incentives to invest in a par-
think this would end up doing solutions, it is surely not an easy one to ticular state of industry, softer loan
more damage (in the long term) implement with success. agreement and others. For the longer
than the short-term good? Thereís immense political pres-
term this is the way to go. However, at
certain points in time there is merit in
Of course this is good. If governments sure on authorities to do some-
undertaking limited job preservation
can do this, it is favorable for the thing to slow growing joblessness.
schemes also, for a certain period of
workforce. And we have to remember For instance, when Jet Airways (in time to enable job seekers to find new
that both Japan and Germany have India) laid off 1900 employees, the avenues. This need not mean that
very high quality and efficient compa- Civil Aviation Minister, Mr. Praful people get paid to do no work ñ that
nies. They have trained, high-value Patel said that ìministry would really never works since it ends up
workforces. As long as such systems certainly not be very happy with impact the longer term work culture
do not encourage the unfit and ineffi- the approach of Jet Airways.î and morale of people. What works is
cient to become part of the systems ñ Similarly when the French oil redeployment. Moving people from
which both Japan and Germany do ñ company, Total announced the non or low productive areas to higher
then this is good. However, not all gov- closure of two refineries and the impact, high productive areas, sectors,
ernments are able to do this. Nor is it consequent loss of 550 jobs, it at- regions.
desirable or feasible across the board. tracted a furious public outcry in- However, all said and done, I
We all need to work with the con- cluding denunciations from two would reiterate that none of this is
straints and the positives of our own government ministers. In both the easy to implement, especially in a gov-
situations. cases, the companies had to with- ernment context where the
Should every other country emu- draw their decisions. Do you governmentís focus should be on good
late these two countriesí prac- think it is right to force the compa- governance.

THANE JANATA
BANK

INTERVIEW
Following Mr. Barack Obamaís would excuse them for being and that can be for various reasons ñ
economic stimulus package, ev- treated as inanimate objects espe- and therefore it was imperative to take
ery government has followed the cially during such trauma times? this action.
suit. Itís more than four months Companies in dire straits have had to Our way has always been to look at
since those packages were an- resort to such measures; this has not various options. At Apollo, we have
nounced and disbursed (at least been a rule across the board. It would used two methods extensively ñ rede-
partially). But the recovery seems be good to hear more about those who ployment and scaling back on manu-
to be getting delayed beyond ex- have persevered to protect and even facturing. We redeployed people
pectations. When do you think enhance jobs at this time. And there across functions and locations and
people can expect a positive re- are many companies who have, in- also decreased the total days of manu-
covery from this downturn? cluding Apollo Tyres. But you are facturing to enable us to keep both
Stimulus packages, especially large right there is an immediate image is- manpower and inventory costs low.
packages, will take some time to have sue that companies face in such situa- People are trading off their jobs
an impact. Here we are not talking tion. The only upside, or even down- for wage cuts and other measures.
about one company and its people. We side if thatís how you prefer to see it, to What is the efficacy of other job
are looking at a nation with diverse this is that when performance is good, saving schemes like shifting to
needs and sectors. I think, in India, a public memory is short. shorter working hours, tempo-
certain amount of recovery is on its Even giving benefit of doubt to the rary work suspensions at facto-
way. 2010 will overall be a tough year companiesí pursuing lay off poli- ries, work-sharing programs and
which we have to find ways to ride cies, what happens to the morale lower pay in exchange for tacit job
out. In the Western world where the of all those who fortunately man- guarantees? The bigger question
impact has been far higher, the recov- age to survive (because they hap- however is can they be sustained?
ery time will also be longer. pen to be the ëbestí employees) and Exactly what I am talking about. These
At the beginning of this century, hold on their existing jobs? Can are all measures that can be deployed
every where there was talk of tal- companies expect best perfor- during tougher times when the pro-
ent management prophesying mance from their ëbestí employ- duction volumes required are lower
time and again that people are the ees? than usual to ensure gainful employ-
key assets. And everyone com- You are right. Such actions not just ment. And yes they can be sustained
plained of talent crunch. Now that have an impact on those leaving but for a period of time to tide over tough
there is cash crunch, in the name also leave a psychological scar with times. However, as you will under-
of either managing a downturn or those remaining. Actions such as stand these are not measures that are
restructuring, every company re- those you mentioned, if not managed required when goods are selling and
sorts to sacking the employees properly and communicated well, of- production is working on full capac-
mercilessly. In fact, some CEOs ten result in the best people leaving ity.
advocate their divisional heads immediately after the downturn is Cutting working hours also adds
not to be emotional and sentimen- over or as soon as they get another job. to the bigger macroeconomic
tal and take a knife and chop off. And of course it affects morale of all problem currently hammering
Why this U-turn? employees and creates a feeling of in- the world economy: lack of de-
I would not agree with you here. Let security. mand. Pay cuts eat into consumer
us not get taken in by a few newspaper Do you think layoff is the only an- spending, which in turn amounts
reports here and there. Yes, some of swer to manage the downturn? to more bad news for a world
what you say may have happened, but Geoff Colvin argues (Fortune, economy in need of stimulus.
it is difficult for us to appreciate the March 30, 2009) that the costs of a Therefore, how do you expect the
position that those people may be layoff ñ Brand equity costs, lead- government and the companies to
been in at that time. ership costs, morale costs, Wall make concerted efforts to make
I reiterate that people are our asset, Street costs and rehiring costs ñ sure that oneís solution does not
and our key asset ñ there is not doubt should be guarded against. Given become anotherís problem? Or is
about this. In that, talent is the most these inevitable costs and cost- it inevitable?
priceless commodity. The next is the saving-exigencies, what do you In todayís world not only is the per-
fit between talent and the require- think should be a companyís sonal related to the economy but also
ments of the job. These will continue policy towards layoffs? one nation to another. Today we live in
to be any HR managerís challenges go- As I mentioned earlier, every situation a far smaller world and nothing takes
ing forward. brings its unique circumstances. For place in isolation. Some of this is in-
What happens to all such compa- some may be, a certain amount of lay- evitable. However, if you see how the
nies resorting to massive layoffs offs was the answer. This could indi- Indian government has acted, we have
as regards image and long-term cate also that the company was carry- a lesson here. It has tried throughout
standing? Do you think people ing more people than it needed to ñ this period of bring down inflation,

City Union Bank

INTERVIEW
thereby bringing down the cost of downsizing during the previous Apollo Tyres, we ourselves have hired
good by using means at its disposal crises? talent during this slowdown.
like lowering excise rates. The govern- There certainly is. Once again, not What should be new role of HR
ment has also given a certain amount the easiest of options. However it de- departments? How can HR de-
of fiscal incentives to sectors which pends on what is the goal one is look- partments take a leading and in-
can push demand. It has attempted to ing to achieve that will dictate the fluential role in the business re-
bring down interest costs both on cor- process. Are we looking at massive sponse to the economic down-
porate borrowing as well as areas like cost cuts only in the human return?
housing loans. The government is also sources area? Are we looking at over- HR, anywhere and everywhere needs
ensuring that rural demand does not all reigning in of costs, which will to be sensitive to all situations, but
flag. All this adds up to having a posi- also impact the HR domain? What are proactive and swift. People in HR
tive impact on individuals at every our long term plans? By when do we need to understand and balance their
level, in some way or the other. expect to see an upturn? And of skills between two sets of needs ñ
Send workers home without sack- course what is the financial position those of the individual employee and
ing them, is another often-sug- of the company. The last will in fact those of the company as a whole.
gested solution. Companies are be a key factor to work out many re- Most HR departments play a major
increasingly putting in place lated details. balancing role between these two, to
telecommuting policies to cut No major company in India has seek out the most effective and least
costs and increase productivity. undertaken the kind of dramatic painful method.
Of course, this might just work downsizing that you are referring to. In todayís world, people in HR de-
largely in service and highly indi- Circumstances have been kind to us partments have to understand busi-
vidualized sectors and may not but it also probably shows that our ness well. How the business is done,
work in manufacturing and companies are quite robust and our the key factors affecting it, the envi-
where physical presence is essen- people are flexible and innovative in ronment, the regulatory atmosphere,
tial. However, what are the chal- their approach to HR and manpower etc. If HR personnel can do this well,
lenges in allowing employees to issues. What most companies, like their ability to influence business,
Work From Home (WFH) and Apollo, have done is to reduce costs and often guide business decisions
what precautions do you suggest by shutting production for a while, would increase. And definitely dur-
companies should take before cutting back on the work week, by ing times of crisis, HRís role cannot
adopting WFH policies? cutting back on travel costs and by be over-emphasized.
Work from home or flexi hours are deferring a certain amount of high fi- What is the role of leadership in
all great alternatives in sectors and nancial impact training programs. navigating the companies
functions where they are possible. I The most short term thinking is to through the troubled times, en-
would always recommend these cancel training and recruitment suring that their companies do
measures. This brings down costs of good quality people externally. not go down under and also their
both at the corporate and individual Should companies stop hiring employee morale is kept high?
level. Utility costs can be brought fresh talent? Should they stop im- Leaders make or break companies.
down by companies and individuals parting the crucial skills required Good leaders create lasting compa-
save on commuting and other costs. for their employees to become nies and leave a legacy. There is a
Of course there are multiple chal- quality employees? huge difference between the two and
lenges to such measures. But I have On a short term, say a quarter or two, the value of good, strong and effective
always seen that majority of indi- it is possible and often desirable to leadership, one that has a human face
viduals tend to behave in a respon- curtail training spends. I am saying and is sensitive, is enormous in
sible manner, if they are given a re- curtail, since some training ñ lower todayís world where people are our
sponsibility. There will be some who cost or ongoing modules or high im- real assets. At Apollo, we have been
will buck the trend, but does that pact sessions ñ could continue. Over a fortunate to have not just one or two
mean we will stop trusting everyone longer term, it is not really possible to such leaders but many within the
else or not implement something survive, or do well, if we completely management structure, who are in
that is beneficial to all parties con- do away with trainings. This is one sync with the companyís needs, feel
cerned? area which enables the company to for their people and are also good
Is there possibly a way to manage become future ready and is a major re- communicators.
downturn without downsizing? tention tool. Also hiring fresh talent is
Of course, many argue that itís not a need-based item. If there is a critical The interview was conducted by
downsizing, but rather right siz- need in a certain area, which cannot Dr. Nagendra V Chowdary,
ing. Are there any illustrative ex- be filled internally, companies rarely Consulting Editor, Effective Executive,
amples of either companies or have an option but to hire, even if that Dean, IBSCDC. (www.ibscdc.org)
countries not having gone in for means doing so in a downturn. At Reference # 03M-2009-08-12-06

L E A D E R S H I P
Women Leaders
What Makes Them Successful
dom of the truest type, courage of the
The efficacy of McKinsey's new approach to leadership— heart, and enduranceówhat has she
Centered leadership—that is supposed to help women not endured. Although Ramayana is a
story of Rama and his accomplish-
become more self-confident and effective business leaders, is mentsóhis ethical imperatives, war-
explained through Valmiki's Sita in his epic, Ramayana. heroism, and idealismóit is Sita who
stays back in the mind of every ardent
reader of Ramayana. Indeed, it is Sita
T
aking the fact of men and They named this model ëcenteredí who affords an opportunity to Rama
women starting their careers leadership. It is supposed to be en- to display his idealism, heroism: Sita
with the same level of intelli- dowed with a well of physical, intel- giving away her riches prepares to fol-
gence, education, and commitment, lectual, emotional and spiritual low him to forest; Sita demanding for
but comparatively few women reach- strength that drives personal achieve- the golden deer and accusing
ing the top as a challenge, the ment, while at the same time inspiring Lakshmana; Sita abducted by Ravana
McKinsey Leadership Project under- others to follow. The research carried to Lanka; Sita consoled by Hanuman
took a study to unearth the ëdrivesí out by McKinsey clearly indicates that amidst the terror wrecked by the
that sustain successful female leader- the model of the central leadership ogresses; Sita spurned by Rama who
ship. In the pursuit, they have inter- resonates well with women. For, killed Ravana to free her from him;
viewed 85 successful women in di- womenóbeing doubly burdened by Sita vindicated by the fire-ordeal; and
verse fields, of course, along with a motherhood and management get Sita, the anointed queen of Ayodhya
few successful men to get insights into drained of energy in a quite challeng- and much more. Her journey through
what it takes to be a successful leader. ing way; and they tend to experience all these ordeals explains how the five
Simultaneously, they have also re- emotional ups and downs, not only dimensions of ëcenteredí leadership
viewed the existing literature on lead- more often but also more intensely enabled her to rise to the occasion at
ership, psychology, organizational be- than men, and owing to such emo- every moment of crisis. We shall now
havior, biology, etc., and from the so- tional challenges they are often found take a critical look at them.
gathered information they distilled a opting out of work than menócan,
leadership model that consists of five under the proposed centered leader- Meaning
broad and interrelated elements: one, ship model, consciously draw upon The model describes ëmeaningí as the
meaningóknowing oneís strengths positive psychology to thrive effec- very motivation behind every move of
and putting them to use in the service tively as a leader. Indeed, many of the the people. It enables one to discover
of an inspiring purpose; two, manag- successful women leaders whom the what interests him/her. Such identifi-
ing energyóknowing its source, to- McKinsey team interviewed echoed cation makes work enjoyableóbuilds
wards what it is flowing, what it needs similar ideas. signature strengths into everyday ac-
to manage it; three, positive fram- To understand how these traits tivities, enables one to push oneself to
ingóadopting a more constructive help women leaders to wither out the limit. It provides energy and in-
way for looking at the world, to ex- challenges in their path to success, we spires passion. It leads to happiness at
pand oneís horizons and build the re- shall take a look at the work of workówhich means high job-satis-
quired resilience to march forward Valmiki, the Ramayanaóparticularly, faction, higher productivity, and in-
even when the odds are against; four, the character of Sita,óthat had a pro- creased loyalty. Research indicates
connectingóidentifying those who found impact in shaping the ìcultural that meaning generates feelings of
could help one to grow, and build mind of Indiaî. As Aurobindo com- transcendenceócreates a virtuous
stronger relationships with them with mented, Ramayana has indeed ìfash- cycle that is bigger than oneselfóaf-
an increased sense of belonging; and ioned much of what is best and sweet- fording a deeper meaning to oneís
five, engagingófinding oneís own est in the national characterî of India. work. We have a scene in Ramayana,
voice, becoming self-reliant and confi- In it Valmiki chiseled Sitaís character which shows all these forces in action
dent to accept opportunities along as an harmonious embodiment of while Sita pleads with her husband,
with their embedded risks and col- beauty, tenderness of heart, compas- Rama, to let her accompany him to the
laborating with others. sion of the extreme type, fidelity, wis- forest.
LEADERSHIP
In the Ayodhya Kanda when Rama ing in aerial cars or coursing through be construed as a transgression in the
goes to Sita and tells, ìI am now going the heavens. I have been taught in conduct of a wife, but here they only
to the forest for fourteen years at the many ways by my mother and father show her profound grief ñ grief at Sri
behest of my fatherî she at once says, how I should conduct myself (in rela- Ramaís refusal to let her go to forest
ìI am going too.î He prevents her and tion to you). (As such) I need not be with him, at the very thought of sepa-
indeed frightens her describing the instructed (in this behalf) at this junc- ration from her beloved. But being a
horrors of the forest. He is equally in ture. ...(Nay) caring not for the sover- brave, and true kshatriya woman, in
love with her but could not entertain eignty of the three worlds and concen- the same vein she even challenges
the idea of such a delicate lady putting trating my thought on the vow of serv- him: ìWhat are you afraid of? What
up with all the trials and tribulations ing my husband (yourself), I shall live are the things which you dread that
of jungle life. Hence, he repeats the happily in the forest as I would in my you should reject me who have no
warning umpteen times and even im- paternal home. Serving you everyday other person to rely on earth? I am
parts to her a great deal of worldly wis- with self-reliance and practicing sa- yours entirely, utterly, and yet you dis-
dom ñ how to behave towards his fa- cred vows, I shall sport with you in card me. Where is your moral courage
ther, mother and towards his brother woodlands fragrant with (stores of) gone?î
Bharata in his absence. But Sita, honey, O valiant prince!î She continues to argue: ìO Rama,
knowing what matters most to her, has Her steadfast commitment to the that a (devoted) wife who stands dis-
no ear for all this. Instead she ques- meaning that she ascribed to her life united from her husband should not
tions him: ìWherefore do you tender inspires her to confidentlyóof course, be able to survive. Moreover, in the
me this advice, which makes me look with a face wet with tearsósay: ìThe days gone by while living at my
indeed so small, O Rama, ...A wife disadvantages that have been enumer- fatherís, ...the prophecy was heard by
alone actually shares the fortune of ated by you as accruing from an abode me from the mouth of Brahmanas that
her husband, O jewel among men! For in the forest, know them to be (so I must dwell in the forest. ...I certainly
this very reason I too stand enjoined many) blessings (in disguise) in view know there are sufferings only of vari-
(by my parents-in-law) that I should as of the fact that I am foremost in your ous kinds in the forest. They are (how-
well take up my abode in the forest. In affections. Antelopes, lions and even ever) invariably experienced by men
the case of women neither father nor so elephants, tigers and Sarabhas, of unsubdued mind (alone), O heroic
prince!... Following my husband (to
the forest) with loving devotion I shall
surely be absolved from all guilt, O
It is Sita’s knowledge of what matters to her most that obviously pure-minded prince; for the husband
inspires her to boldly express her sentiments that are an amalgam- is the supreme deity (for a wife). ...If
ation of threat, persuasion, entreaty, preaching of duty, and exposi- you do not feel inclined at all to take
me, afflicted as I am as shown above,
tion of the sanctity of marriage to the forest, I shall resort to poison,
fire or water to hasten my endî.
In this way Sita entreats himóat
son nor their own body nor mother yaks ...that roam about in the forest are times even in a harsh toneóin many
nor their female companions serve as all sure to run away on seeing your ways to let her accompany him. It is
an asylum here or hereafter. The hus- countenance since they have never her knowledge of what matters to her
band alone is their refuge at all times.î seen your face before and because all most that obviously inspires her to
That is the meaning she has about are afraid of you. ...(Nay) life in this boldly express her sentiments that are
her life. Hence, she says: ìIf you de- world must be cast away by me in the an amalgamation of threat, persua-
part this very day for the forest... , O event of separation from you, O Rama! sion, entreaty, preaching of duty, and
scion of Raghu, I shall walk ahead of In fact not even Indra, the ruler of exposition of the sanctity of marriage,
you crushing blades of Kusa grass and gods, is capable of overpowering me which compels Rama to gracefully
thorns (that lie in the way). Casting by his might so long as I am by your take her with him to the forest saying,
away envy (at my courage in voluntar- side. ìbe with me my partner in all that I
ily offering to accompany you to the Driven by a strong passion for re- have to do in the forest.î Sita, the
forest) and wrath (at my insolence in maining by the side of her husband daughter of Janaka and the wife of
flouting your command to stay in come what may, Sita even taunts Sri Rama, happily then strips herself as
Ayodhya), confidently take me... O Rama: ìI think of my father. He sought bare as possible of all pomp and the
valiant prince! No sin (that may deter all the world for a bridegroom, and at burden of pomp and makes herself
you from taking me with you) abides last he got you. If he thought he got ready to go to forest with Rama cheer-
in me. Protection under the feet of hold of the best man for me, he was a fully, and indeed lives happily in the
oneís husband under all circum- fool. What he had got was a woman, a forest sans palatial comforts that a
stances is preferable (for a woman) to cowardly woman, dressed like a princess of her status is used to haveó
residence at the top of a palace, or liv- man.î Traditionally, these words can all because of her ability to discover
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LEADERSHIP
what she loves most and working to- follow your husbandís order.î Perhaps Ravana; I did not act of my own free
wards its accomplishment. admonished, Sita does as she was bid- will on that occasion. My (adverse)
den and when she presents herself be- fate (alone) is to blame on that score,
Managing Energy fore Rama, he says that he has de- my lord. That which is under my con-
It is everybodyís knowledge that stroyed the man who ventured to in- trol, viz., my heart, (ever) abides in
todayís executives work hard ñ 60% of sult him by carrying away his wife and you. What could I do helpless as I was,
executives work for more than 50 thus wiped out the disgrace. He also with regard to my limbs, which had
hours a week. And returning from the says to her: ìremember I did not do all fallen under the sway of another? If I
office, woman executives have to liter- this for your sake. No.î As he utters could not be fully known to you, O
ally switch over to the second shiftó these words, Sita at once grasps that a bestower of honour (on others) in
of managing household chores. Many tragic fate awaits her. Thatís why spite of our love (for each other) hav-
are known to have burnt out with Valmiki says that as Sita looked up her ing simultaneously grown and despite
such grueling schedule, more so eyes seemed to indicate the kind of our having lived together (for so many
women executives. But, psychologist, mortal dread, which a stag shows years), I am undone for good, thanks
Mihaly Csiikszentmihalyi says, ìthose when the huntsman has sent his fatal to such ignoranceî.
who frequently experienced ìflowî ó arrow. She then questions him: ìWhen
a sense of being so engaged by activi- Rama, then intensifying his hostile the eminent hero, Hanuman, was dis-
ties that you donít notice the passage attitude, knitting his brows with the patched by you in order to find me
of timeówere more productive and severity of a magistrate, utters the out, why, O king, was I not repudiated
derived greater satisfaction from their words: ìThere is a stain on your char- by you even while I was (still) in
work than those who did not.î Fur- acter. What man of spirit and born in a Lanka? Life, O hero, would have been
ther, his research revealed that such noble family for his part would take yielded up by me, ...This useless exer-
flow energizes them. It is therefore in- back with an eager mind a woman tion (in the shape of crossing over to
cumbent upon every leader to identify who has dwelt in anotherís house, Lanka and waging war with the
the conditions and situations that re- (simply) because she has been kindly mighty Ravana) which you have put
plenish oneís energy and those that disposed towards him (in the past)? forth exposing your life to danger
sap it. Self-awareness, it is argued,
helps one to deliberately incorporate
restorative elements into the dayís la-
bor. It can also help one to space out It is incumbent upon every leader to identify the
energy-sapping tasks throughout the
day instead of bundling them together conditions and situations that replenish
into either a morningís or eveningís one’s energy and those that sap it
project.
We come across a scene in
Ramayana where we witness Sita, re-
alizing the source of her ìflowî ó e n - While boasting of my lineage, how can would not have been undertaken nor
ergyóand being skillful in its usage I accept again you, who were would your friends (viz., the monkeys
manages it to wither away the greatest squeezed into the arms of Ravana and Vibhishana) have been put to
crisis of her life successfully. To have a (while being borne away by him) and such fruitless hardship. By you, how-
full feel of the state of mind of Sita dur- regarded (by him) with an evil (lustful) ever, who, like a small man, gave your-
ing this scene of tragic distress let us eye? ...There is no more attachment self up to anger alone,... womanliness
follow the scene from the beginning. for you (in my heart). You may (there- alone has been mainly taken into con-
As instructed by Rama, Vibhishana fore) go wherever you like.î sideration. The divine origin of mine
goes to Sita and tells her his message: Hearing the harsh utterance of is not taken into account by you. My
ìAsk her to bathe and perfume herself. Rama, which caused her hair to stand exalted character is not prized by you
Let her put on scents and come to me on end, Sita feels greatly afflicted. She either... Nay, my devotion (to you) as
bedecked with all the jewels she has.î stood bent low with shame. As though well as my chastity have all been ig-
It perplexes Sita. She says, ìI would pierced by those arrow-like words, nored by you.î
rather see him at first as I am, soiled, Sita, pulling up her energy, wiping Speaking so in a voice choked with
grief-stricken, tear-bedewed, miser- clean her face that is bathed in tears, tears and weeping, Sita then appeals
able. Donít ask me to bathe and put on slowly addresses in faltering accents to Lakshmana, who was absorbed in
my jewels and appear as though I have the following reply to her spouse: thought and feeling (sore) distressed:
been leading a gay life. Let me see him ìWhy do you, like a common man, ad- ì(Pray) raise for me a pyre, the (only)
as I am, that is, as I have been here.î dress to me, O hero, such unkind and antidote against this calamity. I no
But Vibhishana, perhaps, having al- unbecoming words, which are (so) jar- longer desire to survive, smitten as I
ready seen signs of trouble on Ramaís ring to the ear, ...I was helpless when I am with false reproaches. I will enter a
face, tells her, ìI think you had better came into contact with the person of fire, which is the (only) course appro-

LEADERSHIP
priate for me, renounced as I am in a vimala sasankanibhananaaóa declares himself and announces his
public gathering by my husband, who moon-like calm faceóonly because evil intention, Sita bursts out in a fit of
is no longer pleased with my virtues.î she is so sure of her virtue from which uncontrollable indignation. But even
Lakshmana, prepares a pyre in def- energy flows into her answering the in that anger she does not lose her op-
erence to the wishes of Sri Rama. accusations boldly and meaningfully timism. Indeed, accepting the reality,
Walking clockwise, Sita, approaching to ultimately come out of the distress she makes an attempt to defend her-
the blazing fire, respectfully bowing successfully. self and in the process, she eloquently
down to the gods prays: ìAs my heart speaks about her husband: ìDo you
never turns away from Sri Rama, so Positive Framing know what kind of person my hus-
may the god of fire, the witness of the It is commonsensical that the ëframesí band is? He is unshakable like the
world, protect me on all sides. Since people use to view the world around great mountain Sumeru, he is invin-
Sri Rama takes me to be corrupt, them and process experiences do cible like the great Indra, he is imper-
though of unimpeachable conduct, let make a critical difference to the out- turbable like the great ocean. To him
the god of fire, the witness of the comes of life. And, professional out- do I belong utterly, body and soul. In
world, under such circumstances, comes are no exception to this general Rama all the excellences dwell to-
protect me on all sides. In as much as I rule. Research indicates that optimists gether; like the banyan tree, he affords
have never been unfaithful in act, see the world more realistically than a wide sweep of umbrageous protec-
thought and speech to Sri Rama... , let pessimists do. And it hardly needs to tion; his word is a bond; his lustre is
the god of fire in that case afford pro- be stressed here how crucial it is for a fadeless. To him do I belong utterly,
tection to me. Since the glorious sun- leader to be optimistic to make right body and soul. Strong-armed, strong-
god, as also the daytime and the twi- business decisions. Research also chested, he has the tread of a lion, he
light and the night as also Mother shows that optimists are not afraid to has the majestic mien of a lion, he is a
Earth and others too likewise know frame the world as it actually is, for, lion in manís shape. To him do I be-
me to be richly endowed with good perhaps, they are sure of their ability long utterly, body and soul. His face
character, let the god of fire protect to manage the underlying challenges has the charm and effulgence of the
me.î by moving their teams quickly to ac- full moon; with the blood of royalty in
Any other woman when exposed tion. As against this, pessimists tend his veins, he has complete control of
to such repudiation in the presence of to feel helpless and to get stuck in his senses and sense-organs; he has a
mighty resplendent soul. To him do I
belong utterly, body and soul. Do you
realize what you are doing? In desiring
The ‘frames’ people use to view the world around them and process me, the devoted and worthy compan-
experiences do make a critical difference ion of Rama, you are a low jackal desir-
to the outcomes of life ing a lioness far beyond your reach.
You can no more touch me than you
can touch the radiance of the sun. I
guess you behold trees all bathed in
the world, an insult that is beyond en- downward spirals that result in en- gold, as they say doomed persons do,
durance, and left to entirely defend ergy-depleting ruminations. for you are doomed if you dare to de-
herself, would have simply wilted out. Optimists are driven by two funda- sire the beloved of Rama. You desire to
But Sita, knowing the source of her mental notions: one, positive fram- draw the tooth of a famished lion. You
energyóher impeachable character, ingóaccepting the facts of adversity desire to draw the fang of a fierce hiss-
her virtueópulls up herself to repri- and act to counter them; and two, ing cobra. With a feeble arm you desire
mand Rama about the language used positive thinkingóreplacing the ad- to lift the huge Mandara, prince of
by himóa noble husband against a versity with positive beliefs. Hence an mountains. You desire to drink the
noble wife. Even in such tiring situa- optimistic person will be better placed halahala, poison, and escape with
tion she could muster energy to pro- to handle the news that he is having your life. You desire to cleanse your
test that she was not her own mistress canceróbeing confident that he can eye with a sharp needle. You desire to
when Ravana touched her, and up- handle the prognosis, he rushes to col- lick a swordís blade with your tongue.
braid Rama: ìIt was not because I lect all the relevant information and ex- You desire to swim across the sea with
wanted to touch him and see how he ecute treatment plans, while a pessi- a stone round the neck. You desire to
felt, that I came into contact with him. mist would simply gets paralyzed with snatch the sun with one hand and the
It was forced upon me. Donít you see? fear. We come across one such incident moon with the other. You desire to
And yet you say these things to me...î in Ramayana where Valmikiís Sita carry a blazing fire in your cloth. You
Though her heart is wrung by the ut- demonstrates the benefits of optimism desire to walk on a row of pikes with
terances of her beloved Rama, she in a grandiose manner. steel points. What disparity there is
could, as the poet says, display In Aranya Kanda, when Ravana, between a lion and a jackal in the for-
vadanmuditpurnachandrakant who comes in disguise as a sanyasin, est, that disparity there is between

LEADERSHIP
Rama and you. ...You may carry me people feel a sense of belonging that ëbelongingnessí to her husband and
away now; but while Rama, like to makes their life more meaningful. brother-in-law, also; her commitment
Indra in prowess, lives and wields the Mark Hunter and Herminia Ibarra for ëreciprocityí immediately after
kodanda, you cannot bend me to your have said in their HBR article that a Rama and Lakshmana finishes
purpose, any more than a fly can eat leader is differentiated from a manager Virdha. That day, early in the morn-
ghee and digest itî. by his ìability to figure out where to go ing, as Rama and Lakshmana are
In her rhetoric, she exhibits the and to enlist the people and groups about to leave, it is the turn of Sita to
presence of mind to mention even necessary to get there.î At the same bring the bows and arrows from inside
about Lakshamana: ìA powerful half- time it must also be remembered that and give to the brothers who were to
brother of his, Lakshmana by name, a all networks are not equal. Roy wear them. And as they leave the her-
tiger among men and the slayer of his Baumeister, a social psychologist, mitage after taking leave of the Rishi,
foes on the battlefield, is the compan- based on his studies, says that men Sita, with a strong sense of what she
ion of Sri Ramaî. She describes tend to build broader, shallower net- owed her husbandósense of belong-
Lakshmana as a dharmachari, and a works than women do and their net- ingóposes a problem to him. True to
dridhavrata. Here, it is necessary to works give them a wider range of re- her stature, Sita protests against her
note that it is the same Lakshmana to sources for acquiring knowledge and husband killing Rakshasas at the be-
whom, a while ago she had spoken professional opportunities. As against hest of Rishis which according to her
harshly accusing him of casting this, McKinseyís study reveals that is a transgression of a yati, muni,
wicked eyes upon her, but now womenís networks, though tend to be which Rama was to be in the forest.
speaks highly of him. It means, in say- narrower, are deeper than menís. She says: ìthere are three transgres-
ing those words, she was then not Many of the leaders interviewed sions to which a man is liable even
thinking of their meaning but only of by McKinsey team talked about the when he makes a slight departure
their effect in making Lakshmana importance of having relationships from propriety. False speech is ex-
obey her order to go to the rescue of with seniors in the organization who tremely bad; the other two are even
her husband, Rama. She has the wis- could stick out his or her neck to cre- worse than thatócopulation with the
dom to limit the impact of her words/ ate an opportunity to a protÈgÈ. But a wife of another and cruelty without
thoughts to temporary and specific ef- number of studies have also shown enmity. A false statement you have
fect, and also keep them impersonal.
Else, she would not have been able to
recall Lakshmana so quickly, that too,
refer to him in such high esteem be- A number of studies have shown that women who promote their
fore Ravana. own interests vigorously are often perceived as aggressive,
All this only vindicates her posi- uncooperative and selfish
tive frame of mind and the ëaware-
nessí she had about herselfóher abil-
ity to change herself in tune with the
changing adversityówhich prompts that women who promote their own never made nor will you ever make...
her to dissuade Ravana from carrying interests vigorously are often per- how can there spring up in you the
her away by warning him with dire ceived as aggressive, uncooperative desire for othersí wives, that destroys
consequences at the hand of her and selfish. It is also felt that men Dharma? You have not got it, nor was
strong husband and brother-in-law. It practice ìreciprocityî better than it ever with you. ...Dharma and
is the same optimism that keeps her women. This coupled with the per- Truthóeverything is well-established
mind strong even under distress and ceived awkward sexual politics be- in you. ...But the third terrible evil,
makes her know what to do at what tween senior executives and younger viz., the taking of othersí lives, which
time: when Ravana is carrying her women, makes it harder for women to is done without enmity due to igno-
over Pampa and seeing five monkeys get sponsors in the offices. It is there- rance, is facing you. O hero, you have
there, she puts her jewels in her upper fore all the more essential for women undertaken a vow to kill the ogres on
cloth and drops it hoping that if by to assess their comfort level with the the battlefield for the protection of
chance, Rama passes through that people they work in office and how sages living in the Dandaka forest; and
way, they would tell him. That indeed influential they are professionally, and for this (very) purpose you have set
happens. That is the strength of opti- practice reciprocity. Many successful out with arrows and a bow towards
mism. women leaders are found to be adept the forest well-known as Dandaka
at finding sponsors and building net- with your brother. ...Hence, seeing
Connecting works. you on your way to the Dandaka, my
It is often realized that ìpeople with We have one such scene in mind is perturbed with anxiety, think-
strong networks and good mentors Ramayana where we encounter Sita ing of your behavior and of your high-
enjoy more promotions, higher pay, displaying a fine piece of articulation est well-being and worldly interests. I
and greater career satisfaction.î Such about dharma that reveals her sense of do not like, O hero, your going to-

MAX INDIA

LEADERSHIP
wards the Dandaka. I shall tell you the Engaging understand the sanctity of marriage.
reason for that; while I speak of it, It is the usual belief that hard work When you have got another manís
please listen.î will eventually get noticed and re- wife in your keeping, you must protect
She continues to say: ìAssocia- warded. But it is also equally true that her as you would have your own wife
tion with a weapon is said to be of it usually does not get noticed. Hence, protected from others. Think of your-
the same consequence as is the asso- it is suggested that one need to ìcreate self; think of everybody like you, and
ciation with fire. Due to love and oneís own luck.î To reap the benefits then delight in the company of your
great respect I am making you ac- from oneís own act, one should de- own wedded wives.î In a surprise she
quainted with this and advising you velop oneís own voice, literally. It is says: ìAre there no good people in
that while taking the bow you often reported that even senior execu- Lanka, are there no honest men who
should never take into your head to tives lose out by not speaking up. care for righteous conduct, and would
kill the ogres residing in Dandaka Hence, any woman leader wishing to you not be guided by them? It cannot
without enmity. ...What connection develop should also take ownership of be. Lanka is a big place, the Vedas are
is there between a weapon and for- their professional development. There chanted here, our religion is followed
est-life? What affinity is there be- are leaders, like Mary Ma, Lenovaís faithfully. There must be many good
tween the duty of a Kshatriya and former CFO, who, looking inward to people. I suspect that you do not fol-
asceticism? The two are contradic- see how she could be a more effective low them. You do not care for the good
tory. Let us respect the laws of the leader, took a systematic approach to people that are here. Seeing that your
place. ...After returning to Ayodhya self-improvement, without being told mind is bent upon evil courses, I
you can again follow the duty of a by someone and met with successes. gather that although there are good
warrior. ...From Dharma follows Such engagement, of course, is em- people to give you proper guidance,
wealth, from Dharma comes happi- bedded with risk. Psychologist, Daniel you do not listen to them.î It is her
ness, by recourse to Dharma one gets Gilbert says that people who choose risk positive frame of mind and the strong
everything. This world has Dharma and work with it, rather than avoid it, belief in her character from which
as its essence. The wise emaciate are reported to be enjoying more happi- constant flow of energy is ensured that
themselves with effort by imposing ness than others do. The McKinseyís makes her even in such hour of crisis
several restrictions on themselves study reveals that ìto embrace opportu- to engage Ravana and make him un-
and achieve Dharma. Dharma does nity, people must often take sharp de- derstand what good men should do in
not follow from merriment. With a tours and that the risks of unexpected any community. Indeed, during these
pious mind, O gentle Rama, always changes seem more obvious than the long months of imprisonment in
practice righteousness in the forest benefits.î Hence, it is suggested that Asokavana, she engages herself to
suited for austerities. In fact, every- reaching out to othersónot to avoid delve into the deeps within to gain
thing comprised in the three worlds making decisions oneself but to learn strength to face Ravanaís blandish-
is truly known to you. I have said the best outcome from changeócan of- ments and threats.
this just in consonance with the fri- ten help one see opportunities in the That is the noble tale of Sita.
volity of a woman. Who is really ca- right frame and decide whether to go for Valmiki chiseled her character as a
pable of teaching Dharma to you? them. tremblingly human and graciously di-
However, thinking over it by re- We see this trait being employed vine heroine. She is innocent but
course to reason together with your by Sita to dissuade Ravana through a wise; gentle but strong, and full of love
younger brother you may do what- meaningful exposition from commit- and compassion. And all this reflects
ever appeals to you. Let there be no ting sin. In one of his frequent visits to in her motivations, conversations, and
delay. î Asokavana where he kept Sita, Ravana actions. In creating such a noble char-
Mightily pleased of what Sita said, tells Sita: ìYou smile so sweetly; your acter, it is perhaps the intention of the
Rama says: ìYou have said this to me teeth are so attractive; your eyes are so poet saint that whenever we pass
because you have a right to do so. It winsome; you captivate me utterly, as through moments of despair and feel
was done in good faith, out of an hon- Garuda does when he meets serpents. helpless and hopeless under the pres-
est desire to put me on the right path. I Come, let us drink together, let us sure of a menacing atmosphere, we
am not offended... Nobody will chide sport together, let us enjoy each otherís shall recall how Sita overcame the or-
one whom he does not care for. You company...î deals in her life by sheer dint of her
chide me, because you are interested All this, of course, is gall and optimism, her clear sense of what mat-
in me, because you love me, because wormwood to Sita. It annoys and pro- ters most to her, her clever manage-
you think I should do no wrong, incur vokes her extremely. She scorns him, ment of energy levels, her art of engag-
no sin.î That is the power of oneís at- but engages him with an argument ing people in discourse in dharma and
tempt to connect with peopleóof ex- that is a mixture of threat, flattery and guide ourselves through the maze of
pressing concern for others, exhibiting advice to see whether any of these life challenges.
a sense of belongingness. How compe- modes could conquer his wickedness.
tent such acts are in strengthening hu- This is her advice to him, pitched in GRK Murty
man bondage! the highest possible key: ìYou do not Reference # 03M-2009-09-13-01

Social Cause Marketing Sept-09

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Social Cause Marketing Sept-09

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P L A T F O RM

Social Cause Marketing

People rationalize buying deci-

In marketing Iíve seen only one

For subscriptions and related enquiries,

Social Cause Marketing The Human Side of

Social Cause Marketing Motivations for Corporate

The Noble and Necessary PERSPECTIVE

Cause Marketing LEADERSHIP

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Local impact marketing is a

Next Generation Medical Management

Over the last few

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and stay there as long as possible . But 2

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into production and profit. However,

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The bottom line is that the techniques

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pected to be socially responsible Exhibit

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The Moral of the Moment…

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Exhibit I: CSR Benchmarking Model are transmitted to the right people at

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be used meaningfully for social pur-

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