Thou shalt do CSR

In this number obsessed corporate world with cut-throat competition, Corporate Social Responsibility (CSR) is an enigma. The fact that a company is spending without any expectation of returns seems bizarre if not bad business. But is that really the case? CSR can bring a lot of benefits, many may say intangibles. But with a perception driven consumer, at times, these intangibles by far outweigh the tangible assets. CSR is a very powerful tool in brand building as well as brand insulation. It can also be called ‘Corporate Yoga (total)’ as the brand accumulates a lot of ‘Good Karma’.

A CSR campaign is a financial assistance, contribution through manpower, brainpower or any other organizational resource for a single or a bouquet of causes, mostly social. The first and foremost benefit is the emotional connect with the target audience. The brand/company/institution, as a result of the good work done on ground, is able to accumulate a strong goodwill amongst the target audience. The value of compassion and selflessness gets linked to the brand identity. The brand is perceived as going beyond business.

The audience feels that that brand is not just selling to them but is also giving back, selflessly. Jaago Re (Tata Tea), Responsible drinker (one for the road), Election initiatives by Google and Mapmyindia, are some of the recent examples. The aims may be diverse but the message is clear ‘business is a social activity’. The employees also feel that they are working for compassionate and kind organization; this can contribute to reduced employee turnover. Big companies like Microsoft, Tatas and others run billion dollar charity funds not just out of heart but as ethical business practice and a strategic tool.

There may be crisis situations at some point of time. And these can do some serious damage to the brand. The equity built over decades or even over centuries is at stake. The damage has been done but if there is some soft corner (good karmas of the company) in the heart of the consumer, she is willing to forgive. This is another the benefit of a well intended and well executed CSR campaign. Strictly in business terms CSR doesn’t just contributes to brand building but also insulates it. So in Lalitaji’s words,“CSR Karne Mein Samajhdari Hi Samajhdari Hai.”

Peepli Live, Aamir Khan & a short case-study in crisis communication

Last week there was an incident reported in the Delhi edition of HT City, the city supplement of Hindustan Times. A classic case-study in crisis communication, the incident is actually a controversy relating to the music launch of Aamir Khan’s forthcoming production, Peepli Live and the song Mehengaai Daayan. Gaya Prasad Prajapati, a teacher from Badwai village near Bhopal is reportedly unhappy with the Rs. 1,100 paid to him for penning the lyrics. He has demanded Rs. 11 lakh.

Whatever the turn of events, HT City’s report portrays Aamir Khan as a man of integrity. Unlike the ugly controversy involving popular author Chetan Bhagat, which erupted during the release of 3 Idiots, Aamir here takes full responsibility for whatever happened and his quote becomes the article’s headline – ‘I take it as my fault: Aamir’. The actor clarified his stand, assured that the matter would be sorted out and invited Mr. Prajapati and his troupe to the music launch in Mumbai. Clearly, the buck stopped with Aamir, and the incident just made his ‘thorough professional’ image stronger.

During a typical crisis, when the media is minutely scrutinizing a particular incident, it is common for the buck to pass from one person to another. There’s no one to take charge, there are ‘no comments’ reports and mobile phones are switched off. What happens next is only natural. The image of the organization or the individual embroiled in the crisis takes a severe beating and often suffers permanent damage. Instead of rising and taking responsibility, one is seen as selfish and a shirker.

What is recommended by experts and what should be the most common thing to do in a crisis is not to appear clueless. The lesson that the Peepli Live incident has for organizations is to stay in command and to stay strong; to accept responsibility and to remain honest. There should be a constant flow of information and not a communication breakdown. People admire courage and integrity and it is possible to come out better-than-before from a crisis.

Effective crisis communication for organizations is possible when the organization is prepared for a crisis and has a mechanism in place, which is regularly tested, monitored and reshaped. At a time when bad news spreads like fire, especially through non-conventional media like Facebook, Twitter and blogs, it’s only prudent to anticipate events and be prepared for them. It’s not always possible to remain focused, especially when one is under pressure. Plus, there are numerous incidents like Peepli Live reported everyday, which cannot always be called good examples in crisis communication.

And to get back to the HT City article, it reports that Mr. Prajapati was eventually paid Rs. 6 lakh. Asked why he settled for Rs. 5 lakh less than what he’d asked for, he’s quoted as saying: “The love we’ve got in Mumbai is far more than what we expected.”

Brand Ambassadors – To be or not to be?

He is a knight in shining armor fighting to save the damsel in distress, and we can’t help but notice that he wears a particular brand of underwear. She is supposedly an ugly duckling – demure yet determined – who turns into a beautiful swan after she uses a new fairness cream. Together they are the new age brand ambassadors, prodding us to use the products and services they endorse.

Lot has been written and discussed about how brand ambassadors are able to connect with the target audience, how their positive halo is transmitted to the brand etc. From Shah Rukh Khan to MS Dhoni, from Aishwarya Rai Bachchan to Sania Mirza, they have all been trying to convince us about soaps, creams, undergarments, cold drinks, contraceptive pills, cars, motorcycles and more. But the crucial question is: does their onscreen persona really rub on to the products they endorse?

But first things first – are brand ambassadors or shall we say celebrity brand ambassadors really necessary at all? The answer could be yes and no.

A celebrity brand ambassador is able to cut through the marketing clutter instantaneously and catapult the brand into prominence. This could be a good theoretical argument and true only if the brand ambassador is endorsing only one brand. Today the same brand ambassador is endorsing almost everything – from hair oil to premium watches.

To be honest, it is not only a brand that is affected by the brand ambassador; it’s also true the other way round. The brand ambassador’s own image is also many times affected by the product they are promoting. Not too long ago, a communication campaign to improve the image of a particular state, which was known to be plagued by criminal activities, was launched. The message being spread through the campaign – ‘there is prosperity here as crime is low’ – was not wisely chosen. The campaign backfired and the celebrity brand ambassador’s own image took a beating. It had a domino effect with the image of the other brands he was promoting also getting impacted.

Apart from the effects of other brands there is also the risk of negatives crossing over from the personal lives or comments of brand ambassadors. Tiger Woods is the latest example. A leading actress promoting a soft drink brand, in a media interview said that her ‘perfect’ body was a result of her not taking any cold drink. Understandably, the brand managers were hopping mad.

Apart from the controversies and the occasional slip of tongue, there is the also cost factor to be considered. With a high profile and perceived-to-be-expensive brand ambassador, the consumer feels it is she who is footing the bill for the expensive product. And it is true.

A brand ambassador is a good bet in the high-end, lifestyle oriented, price-inelastic product segments like premium watches, expensive cars etc. However for a new player to get noticed in a crowded and undifferentiated market, a high profile brand ambassador would be necessity rather than a choice. For example,  MS Dhoni was a good choice for Aircel.

Celeb endorser is also a simple, though expensive, way of reaching to audience. But during the recent recession almost all brands were looking at innovative ways to cut costs including slowing down on celebrity endorsements. However, in the price-elastic products like soaps, detergents and other lifestyle products the decision about the brand ambassador should be taken with a lot of caution. This is mainly because brand loyalty is low and with the availability of discount stores, there are more options available and buying decisions are usually made on the basis of discounts available.

Lastly, some of the most memorable brand campaigns in the country in the recent years have been minus any ambassador. They aren’t too hard to remember. Hamara Bajaj, Surf (Lalitaji), Liril (they used Miss India as the Liril girl but that hardly mattered because she was a ‘Liril girl’ first); Nerolac (‘Jab ghar ki raunak badhani ho’); Asian Paints (‘Sunil Babu’); Vicco Turmeric (Sangeeta Bijlani was not a celeb then).

Social media policy for employees: Implement with care

While Infosys is getting ready to issue a social media communication policy for employees, other companies might be following suit. And why not? Social networking sites like Twiiter and Facebook are altering the way employers perceive their employees. It’s the new leveller. Any employee can now tweet or update their Facebook status and share information about their company, clients, work environment, policies etc. So it makes sense to issue a social media do’s and don’ts policy.

But let’s not forget that employees are also a company’s brand ambassadors. Instead of introducing draconian restrictions, organizations can make good use of social media. A simple example is creating and taking charge of your organization’s official Facebook page and encouraging employees to join in as fans. Connecting with your employees on the platform they prefer is like forging a new bond. Regular updates and announcements could be shared with the organization’s group of official fans. Of course, it is important that the page does not stagnate and there is continual information update and exchange.

Social media is also an effective tool for small and medium enterprises. The employee base is small and therefore connecting with your colleagues becomes even easier. When the company is small more attention is paid to business growth and employee communication is normally ignored. But through innovative use of social media, employers can easily ‘connect’ with their employees. The medium also provides direct access to the top management team, removing boundaries and making information flow easier. Additionally, a CEO who tweets is normally seen as approachable, media-savvy and confident by her/his subordinates.

And as mentioned earlier, employees are brand ambassadors of the company they work for. Therefore happy and proud employees take pride is declaring their loyalty to the company they work for, be it through interactions with others or through their social media updates. Freedom of expression is always valued whereas frivolous restrictions only breed contempt – something we should clearly understand in the world of social media.

Dhoni’s wedding: How a celebrity can reach out to his fans

We all know that being a celebrity is never easy. And if you are a cricketer in India, your life – both professional and private – is up for scrutiny every moment of the day. Some of us believe that we should leave our stars alone and let them lead their lives. It’s a valid point. But our celebrities are everywhere – sometimes on TV, when they ask us to only buy ABC chips, or when they assure us that they use XYZ internet connection and that is the best for us as well. They make an emotional connect and it’s only fair that their fans respond with the same vigour.

A case in point is the recent wedding of Mahendra Singh Dhoni. Every hour we hear unconfirmed news reports and see grainy images from his wedding. There’s speculation about almost everything – the name of Dhoni’s bride, the age difference between the husband and wife, how they met etc. So why is there no official word from the cricketer about the happy turn of events in his life?

For our celebrities there are many ways of handling their personal lives. The first is the easy way – be secretive about the special events in your life and let your fans decide – real or imaginary – all that’s happening.

The second choice is not easy. It demands that you be straight-forward, give out information and kill speculation. In the case of Dhoni’s wedding, it would have been a terrific idea if a formal statement from the star cricketer could have been issued. It could have given details about the wedding, his fiancée, where they met, about the two families, and also if they really studied together…This along with a couple of photos of them together would have been perfect.

Timing and precision would have been the key. Since the wedding was low-key, the details could have gone live immediately after the event (may be around midnight) – issued to newspapers, TV channels, websites, blogs, Facebook, Twitter, Orkut…almost everywhere. The idea is to reach out to people and let them know that you are now a married man.

At the moment, there’s no statement from Dhoni about his wedding. Again, we all know that being a celebrity can be demanding. But if you make efforts to reach out to your fans, being a celebrity can really give you a high.