consumers often are taken to brands and companies considered to have a good reputation in areas related to Corporate Social Responsibility-CSR. One company considered socially responsible can benefit from its reputation among the public, and its reputation among the business community, thus increasing the company's ability to attract capital and partners. For example, a study conducted by two professors of management at Boston College found that excellent relations with employees, consumers and the community is more important than big profits in order to become part of the annual list of most admired companies by Fortune magazine.
Active participation in community activities, creates a positive reputation with employees within the company. A study by Hill and Knowlton and Yankelovich Partners, Americans think more highly of companies that focus their philanthropic efforts in the donation of products and encouraging employee volunteerism in the community. Only a small percentage believe that "giving a large sum of money" is the most impressive corporate action. Business leaders are frequently quoted in the media and are recommended for investors looking for socially responsible companies. Many of the annual list includes companies active in the community as part of the parameters measured. For example, Fortune magazine will, puts the "social responsibility" among the eight criteria used in its annual survey of most admired companies, along with financial strength and management quality. Companies have used
environmental responsibility as a way to strengthen its reputation or brand image, which in return has helped to increase sales and attract investment capital. In the Netherlands, the market value of ITT Nokia for 24-inch TVs increased from 57% and 73% gross income a month after a consumer magazine described them as the best products, based in part energy consumption, recycling and reduced use of questionable materials. In the U.S., consumers spend about $ 110 billion in products identified as "socially and environmentally progressive." Also, companies that have integrated environmental factor in business decisions are starting to gain benefits financial institutions and insurance companies, according to a report of the Aspen Institute conducted in 1999.
In the global economy, brand image and reputation are among the most valued strengths. Responsible marketing practices, by nature, are highly visible to consumers and have the potential to strengthen or weaken the public's opinion about a company or brand. A reputation for integrity and a strong commitment to consumers can build loyalty and trust and provide a safe space in times of crisis, having a public more tolerant and more likely to restore confidence when the crisis ends. Similarly, practices responsible marketing that are seen in a negative way can diminish the brand image and reputation of a company and the products or services have very high quality.
This material is courtesy of the BSR Education Fund and the Forum COMPANY.
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