Previously I introduced the very trendy business term, CORPORATE CSR in my previous post (About Corporate CSR). As you will now have a bigger understanding of the subject, I now want to introduce it within a world perspective. The major objective contrasts will be between corporate CSR Asia/ Pacific Asia, and corporate CSR Europe/ Scandinavia. In short, I will state differences between major corporations, their CSR models, CSR strategies, and CSR impacts.
WORLD CORPORATE CSR is Corporate Social Responsibility on a worldly scale. Moreover, this means that major corporate decisions always affect our globe, both financially and ethically. As Corporate CSR is a big corporate trend as a highly influential marketing tool, we see more and better examples as time progress. Therefore, Corporate CSR is the major influential tool to change and better the world. However, Corporate CSR is still at a stage where corporations could manipulate minimal results while insuring positive belief throughout its target markets.
I would like to explain how corporate csr looks like in China from my own experiences. Furthermore, I want to demonstrate its impacts and how the majority of the Chinese population reacts to it. First of all, you need to be aware of that +90% of the major Chinese corporations are highly influenced or operated by MNCs (multi national corporations). This means that the headquarters are usually located internationally, and most of their products are being exported, at the same time while high margin income also leaves the Chinese community.
A general mistake is the perspective that one can do anything, and get away with almost everything in China. Many times it is right due to corrupt communistic ruling, however China is highly Dependant on international technologies, boost of money, along with other expertise. At the same time, the country is run by a "face culture". This f.ex. means that if a large organization states itself to undertake Corporate CSR operations, it needs to perform their words, otherwise the Chinese government may lose face at an international scale because it is the stakeholder that allowed and enabled the businesses operations.
However, corporate csr does not need to be actively visible in China. Therefore, your corporation can chose whether it wants to enable a corporate csr structure or not. On the contrary, the Chinese owned and operated corporations, tend to minimize risk regarding loss of face. As the Chinese government does not have regulations set as high as in many western countries (f.ex. carbon emission levels), then why just bother. At the same time, Chinese business owners can completely avoid government impacts on their operations as long as they invite highly ranked officers from the local communistic party.
To this I want to add a similarity of corporate csr all across the world. It is the buying behavior of "all" global markets. Even persons who state that they are socially and environmentally aware, ignore corporate csr over low-prices products. Marketing surveys state that a majority of buyers chose a product with no corporate csr qualities, over a product with csr qualities which is priced less then 1% above the rival product. This especially relates to the Chinese purchasing behavior of "everyday goods".
So what can we define out of Corporate CSR, and the impact it leaves behind, across broad areas such as continents? Well, firstly CSR strategies are highly impacted by pricing. If it will not generate a direct value, this "marketing tool" is ineffective compared with most low-cost rivals.
Secondly, Corporate CSR models need to be constructed not only in an effective matter, which also requires restructuring previous operations (usually high cost). However, due to modern technologies, upcoming competitors have an easier market penetration with they corporate csr, is they can use the most effective csr models up to date. Thus, forcing veterans in the markets to change.
Thirdly, People are increasingly aware of the environment and impacts on their social surroundings due to improved media coverage. Although people all over the globe chose price over corporate csr products, the increased competition to demonstrate high ethical values between MNCs, creates such a mass market coverage of advertising that people theoretically should increasingly be more susceptible to the more moral Corporate CSR business practices.
In the next post around Corporate CSR, I will be speaking about Corporate CSR Models, It is however today a colossal upside of unethical responsibility
Thank you!
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