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Corporate Social Responsibility & Social Media (Social Media Week Panel Discussion Recap)

Panelists: Deb Berman [JustMeans], Bonin Bough [PepsiCo & Pepsi Refresh Project], Virginia Miracle [Ogilvy PR], Chrysi Philalithes [(RED)]

As part of Social Media Week in New York City I attended a panel discussion on “Putting the Social in Corporate Social Responsibility”. The most significant take-away for me was that Corporate Social Responsibility needs to be more than a marketing tactic; rather consumers expect CSR to be fundamental in the culture of modern brands:

1) Why Corporate Social Responsibility (CSR) is so critical now for brands

• People voice interest in wanting to buy products from brands that align with their personal values, but often don’t due to factors such as awareness, perceived cost, and availability
• CSR is important to brands because it helps them differentiate themselves between competitors and connect people to the personality of the brand
• Stat: 70% of people believe that companies can make a bigger difference in the world than governments can
• CSR is now a standard expectation by consumers rather than a progressive opportunity; consumers require brands to give returns on the investment they’ve received in the market
• Measurement of CSR needs to move beyond the incremental advertising impact to how much social value a company is generating; this forces brands to invest not only in the funding of programs but execution of them as well
  • ex: Pepsi Refresh Project- Not only is Pepsi funding projects, but has partnered with organizations that can help bring people’s ideas to life
  • ex: Time Warner gives money to help young people get educated in science, math, & technology fields, and ROI is judged based on the “number of minds with new educational opportunities”
• New brands are entering the market that maintain CSR a their core, and legacy brands need to prove they’re truly embracing SCR to compete in the public eye
  • ex: Method & Greenworks are “CSR” brands from their origin; A legacy behemoth though like Pepsi will effect significantly more change by making improvements, such as when they reduced the plastic in their bottles and started making bio-degradable chip bags

2) Why social media plays a critical in activating in Corporate Social Responsibility (CSR)

• Social media is an important channel to help maintain transparency & authenticity around how funds are being allocated
  • ex: (RED) needs to ensure the public that donated money is allocated responsibly
• Social media enables people to spread the word about brands that represent their ideals
• Social is also the environment where companies that are socially irresponsible are discussed, and it’s important to be part of the conversation to make sure consumers know the brand’s efforts

Pepsi’s efforts with the Refresh Project that they kicked off in replacement of their normal Super Bowl spend is getting a lot of attention as one of the most high profile CSR efforts. Pepsi stated that they are tapping into the generational undercurrent of “seeing the power of the individual’s idea”, the same way they would have tapped another cultural trend as the core of their business. They’re giving control of the program over to their consumers, and providing the resources to the public to ensure their investment doesn’t go wasted. They’re investing heavily overall in transforming their company to one that matches performance with purpose, which has lead to their green efforts along with their CSR efforts. It’s a long term shift that will be manifested throughout their company, not just the marketing side.