Marketing: Why social programs (such as supplier diversity) enhance brand, image, and performance

This article was contributed by Sam Taylor, Founder of Reputation Dynamics

With companies continuing to pursue corporate social responsibility (CSR) opportunities as part of their business innovation, the emerging market of Africa is increasingly under the spot light.

CSR is no longer considered just a cost of doing business but as an integral part of a long term business strategy, as well as increasing profits and competitive edge.

Supplier diversity programs are a critical component and vehicle for corporations to engage in grass-roots community development, as well as improving productivity and cost efficiencies. It also enables the corporation to buy and source products and services from suppliers that are otherwise disadvantaged. While enabling the corporation to better match and reflect the demographics in the communities where they operate and/or have stakeholder engagement interests. A ‘Win Win’ advantage.

Given the growth and trends of the emerging market sector and opportunities for corporations to align ‘Doing Good in Society’ with generating revenues overseas, there has never been a more timely opportunity to better market and leverage the benefits of supplier diversity programs. For example:

-Companies that procure from their local suppliers in communities where they have business interests will leverage their business and product development opportunities

-They will be able to develop stronger stakeholder engagement programs, long-term and inclusive partnerships

-They will be able to significantly contribute to their local communities by developing grass-roots community programs that address critical social issues such as education, HIV/AIDS and poverty

-They will achieve brand recognition and enhance reputation

-They will boost marketing activities via the better alignment of their business with social innovation

-They will enjoy cultivating and forming trusted relationships with governments, businesses and civil society

-They will develop a healthier work force providing them with training and addressing critical skills shortages in African countries

However, from the outset, it is critical to evaluate and focus on the social issues that are integral to their business, products and services. Then, integrate top-to-bottom throughout the organization, utilizing the extensive tools and resources they have available to them such as products, education and advocacy, as well as social media and Web 2.0 initiatives. Finally, they should advocate for and market the progress of their activities local back to global.

Navigating the New Frontier – Emerging Markets: Implications for Aligning Social Change with Business ROI

The following is a teaser for Sam's excellent article on 'Aligning Social Change with Business ROI'. Please follow the link at the bottom of the page for the full article

As multinational companies continue to explore growth opportunities in an economic downturn, emerging economies are dominating the strategic agenda and boardroom discussions.

The economies of Brazil, Russia, India and China (BRIC) are projected to account for over 55 percent of worldwide GDP by 2020. The number of multinational companies that are based in BRIC countries more than doubled from 27 in 2005 to 58 in 2009. Whether a corporation is targeting a BRIC, Africa, or other emerging market business growth opportunity, they are also being forced to re-consider their social investments.

This is further fueling competition among organizations who are seeking the benefits of investing overseas, as well as the increasing evolvement of the relationship between business and social impact.

Despite the naysayers and ongoing responses to the recent Wall Street Journal article (The Case Against CSR-8/23), Corporate social responsibility (CSR) and sustainability is continuing to evolve as a strategic imperative for safeguarding a company’s brand reputation, engaging employees, driving revenue and sparking innovation.

According to a study conducted by the UN Global Compact and Accenture, 93 percent of corporate CEOs say that sustainability will be critical to the future success of their companies including the following business actions over the next five years:

• Shaping consumer tastes to build a stronger market for sustainable products;

• Training management, employees and the next generation of leaders to deal with sustainability issues;

• Communicating with investors to create a better understanding of the impact of sustainability.

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