With consumer focus on charitable giving rising to new heights, C&T brands are upping the ante with their CSR strategies. And as companies cotton on to the profitable implications these campaigns could bring, it seems to be a win-win situation
Over the course of the past decade it is clear that societal views on living responsibly have developed considerably. With consumerism stronger than ever, consumers have begun to sit up and think about how they can give back to the world and they’ve started to expect the same from not only the government but also the companies from which they purchase their consumer goods.
In this vein Corporate Social Responsibility (CSR) roles within many companies have evolved from being an additional task of the marketing team to being an important, individual arm of the business. As for the smaller companies who lack the budget to dedicate a whole team to CSR, many still incorporate it as an essential part of their marketing plan every year.
Sustainable giving
Larger corporations that span many consumer industries and put the biggest strain on the environment often have significant CSR campaigns and C&T giants are no exception. Procter & Gamble has created the Live, Learn and Thrive campaign, a singular project that focuses its contributions and sustainability efforts on improving the lives of children from birth to their mid-teens. Aimed at helping disadvantaged children at their most vulnerable P&G has created programmes in different communities across the globe and has created a signature initiative – Children’s Safe Drinking Water – a scheme that funds global relief groups to generate millions of litres of safe drinking water in developing countries.
Unilever, another beauty giant, distributes its corporate giving through a number of projects, which fall under an umbrella of key values that include education, sustainable development, the arts and health including work with the World Heart Federation.
Consumers increasingly want to feel reassured when purchasing beauty products that they are not harming the earth while doing so and that their money can help to give back to the environment and charitable causes, such as natural body care brand Organic Surge’s work with disadvantaged children in Africa. As the natural and organic trend grows, so too does the demand on the cultivation of the natural ingredients used in the products. Therefore more savvy consumers are increasingly concerned about what their C&T brands are doing to protect the sustainability of these ingredients.
Clelia Angleon, founder of Brazilian natural brand Surya Brazil, has built her brand with a sustainable future in mind: “Just because a product is natural it does not mean it was produced via sustainable means. The purpose of making organic cosmetics is to offer the consumer a quality product (a purer product with minimal risks to health) and, equally important, to observe good environmental practices. By purchasing an organic product the consumer is assured that the product was manufactured without harming the environment and that using the product means eventually discarding an environmentally safe residue.”
US naturals brand Burt’s Bees is expanding its presence in the UK and Europe and has, according to Jennie Laurence, marketing executive for the company’s UK division, lived by a principle of responsible growth since brand conception. “Over the past couple of years many businesses have begun to incorporate sustainable practises into their everyday function, from basic changes like recycling to larger initiatives such as transport, green buildings and environmental projects.” Burt’s Bees is a company that is leading by example, funding many CSR projects including housing projects and doing humanitarian work. But one project particularly close to its heart, with the honey bee being the cornerstone of Burt’s Bees products, is its Bee – utify Your World campaign. The campaign researches into key bee health issues, in particular funding research to aid the sustainability of the honey bee. In addition to this the brand has set itself big environmental targets called its 2020 Sustainability Goals, which require all products to be 100% natural and packaged in 100% post-consumer recycled/biodegradable packaging, a reduction in waste to 0% and a reduction in carbon footprint to produce 100% renewable energy.
Perhaps one of the most established sustainable CSR projects is Aveda’s (Estée Lauder) Earth Month, which takes place every April. Chuck Bennett, vice president of earth and community care Aveda, discusses the causes the brand works with: “Aveda partners with indigenous communities and small farms around the world to sustainably source high quality ingredients and help support and preserve indigenous cultures. As part of Earth Month each year Aveda salon professionals, employees and customers raise funds and awareness of environmental concerns. For the past three years we have partnered with the Global Greengrants Fund, which provides small grants to grassroots organisations working towards clean water and air, sustainable livelihoods and healthy communities in Africa, Asia, Latin America and island nations around the world. Aveda Earth Month aims to make clean water a basic human right.” Bennett is also upfront about the fact that charitable giving can actually benefit the company: “from a business perspective, our sustainability efforts not only help to build our brand equity – but save us money too. For example, energy conservation efforts at Aveda save over $540,000 in utility costs annually. Our business has grown five times over in the past ten years, and we’re among the top five performing brands in the Estée Lauder portfolio. We are able to achieve all of this while pursuing a green agenda.”
A woman’s world
With the beauty industry focussed predominately on women, there is obviously a large focus from C&T brands benefiting charitable causes that focus on issues that affect women. A pioneer of CSR and charitable giving and a brand synonymous with ethical values is The Body Shop. Created by the late Anita Roddick, the company and brand has, since innception, been a strong campaigner for social projects that help women. According to Roisin Long, international PR manager for The Body Shop (L’Oréal): “The Body Shop runs its business based on a belief that it can be both profitable and a force for positive social and environmental change. For over 30 years, The Body Shop has believed that business has the power to make the right kind of difference to the world. We believe that trading with principles and passion can help to safeguard our beautiful planet and those who depend on it, and the best way to convince others is to lead by example.” Indeed leading by example is a strong part of The Body Shop’s ethos, with its Stop Violence in the Home, Stop HIV – Get Lippy and Trafficking is Torture campaigns all providing support for causes that affect women.
Perhaps the biggest benefactor of charitable giving from the beauty industry is the Look Good... Feel Better (LGFB) charity. LGFB aims to help female patients deal with the aesthetic effects of cancer by running beauty workshops at hospitals across the UK. The workshops show women how to redefine their natural beauty with products donated by companies from across the industry with the likes of Christian Dior, L’Oréal and Revlon major participants. Another female-focused benefactor of charitable giving in the C&T industry is Breast Cancer Care, recipient of many donations during Breast Cancer Awareness month in October every year with Elemis, Aveda and Origins just some of the brands involved.
The only option
Another major CSR contributor in the C&T industry is UK naturals brand, Lush. Hilary Jones, ethics director for the company feels strongly about how businesses should give back. “Business does not exist outside wider society, it is part of and dependent on it and owes its very existence to the generosity of customers willing to buy our goods and services. So, as a business, participating in wider society should not be seen as a choice, but as a given.
As an industry, where and how we source our raw materials are the most important decisions that we have to make on a daily basis. The impact that these decisions have can be huge on the environment and the living conditions and social circumstances of those growing and processing our ingredients and raw materials. Often it is poorer and more vulnerable communities and environments that are at the start of these processes, and a constant vigil is required to ensure that we do not put their needs aside in our industry’s need for their resources.”
Marketing matters
But while companies are obviously keen to push their CSR agendas forward as a generous act of kindness on their part, there is often a savvy marketing and advertising team behind the campaign. Dominic Lyle, director general for the European Association of Communications Agencies, gives an advertising perspective: “In many cases poor CSR performance poses a risk to reputation and brand - think Nike and the sweatshop labour case. Therefore CSR has traditionally been related to brand in a negative way, but it is now moving from the sphere of brand risk to brand opportunity. Smart companies are realising that CSR can be a source of competitive advantage.” Indeed Lyle suggests that many companies have started to develop brands that have a CSR focus as their key selling point from conception. “The walk must fit the talk, companies need to create brands that consumers can identify with and bond with. This puts enormous pressure on these companies to ensure the integrity of the supply chain and have the highest standard of product safety, as well as have a number of social issues such as ethical labour practises and human rights,” says Lyle. “Overarching these concerns needs to be a robust governance structure to ensure the company’s performance is consistent with its policies and goals. The critical point to bear in mind is that CSR should not restrain, but can – and should – open up new avenues for creativity. There’s a need here for the talents of advertising and communication agencies. Society has a new range of concerns and clients have a new set of messages.”
Enough is not enough
It is clear that consumers are growing increasingly concerned that the world is continuing to suffer at the hands of consumerism. And as the interest into brand responsibility gains momentum, companies would be wise to immerse themselves in charitable activities or be at risk of losing consumers. Aveda’s Bennett agrees: “Consumers now have tremendous insight into how corporations do business, how products are manufactured and the potential environmental consequences of the manufacturing process. The majority of consumers will remain loyal to a company that has a social and environmental commitment and will continue to support brands whose values resonate with their own. “
With CSR leaders pushing the C&T industry forward as a spearhead for responsible manufacturing, there is no doubt it will continue to move into the spotlight, leaving the less savvy brands in its wake. Concludes Lyle: “CSR has moved from peripheral to mainstream importance. How companies are judged as social contributors, but also financially, will increasingly depend on their ethical position in the market.”
A beneficiary s tale
' We are the only charity that truly represents the beauty industry, so in that context there is a mutual desire from ourselves and the beauty brands to be in partnership. We have been fortunate that from our inception 15 years ago all the major brands have got on board. The beauty industry aims to help women look their best at all times in their lives, and our mission is to uphold that when women are probably going through the worst times, dealing with the after effects of cancer and what it does to their appearance.
' However, the work of LGFB could not exist without the support and co operation of the beauty companies that are involved such as Christian Dior, Estée Lauder and L Oreal. Collectively they supply beauty products that we give in the goody bags the women receive, and provide volunteers to support the two hour skin care and make-up hospital workshops we run every week. Not only this, the brands also provide financial support to fund the running of the charity, they do this by paying to be members, with many of the companies funding this with group or individual fundraising exercises. Many beauty companies also allow their own beauty consultants days off in order for them to be available at our workshops.
' It s not just beauty companies that help, beauty retailers such as Harrods and Boots are also incredibly important to our charity and help raise our profile and generate funds. For example with the support of Boots this year we have been able to build a new website (www.lgfb.co.uk) and also fund our 15th anniversary regional celebrations to thank our army of volunteers around the country.
' We are also lucky to have the support of the retail association COPRA who, by generously making us its key charity for fundraising for many years, has helped us fund new programmes and projects each year. This year we were able to publish our new self help DVD the Confidence Kit which is proving to be a wonderful tool to help women who cannot access our hospital workshops.
' LGFB is there to help every woman through those challenging and difficult times, which make a women feel at her lowest point when coping with the ravages of cancer drugs and treatment and this is testament to the involvement of the top global brands.'
Estee Lauder brand Aveda has also been a leader in pioneering CSR initiatives and has huge success with its Earth Month, which helps support the Global Greengrants Fund. Kelly Purdy, director of development and communications for Greengrants explains why Aveda s contribution is vital.
' The partnership with Aveda is extremely important to the Global Greengrants Fund. We are a small organisation and their support is actually a fairly large part of our annual revenue (we have a budget of $7.7m for this fiscal year, Aveda s contribution to that is just over $1m). Because Greengrants makes small grants (generally between $500- $5,000) the support of Aveda goes a long way in creating change around the world. Each year we are able to give between 100-200 more grants to grassroots environmental groups working on issues of water access, water rights and water justice and we could not do this without Aveda s help.
' Our relationship with Aveda has meant much more than just significant financial support for our work and our grantees around the world. The partnership has enabled Greengrants to become savvier and smarter about our own marketing and public relations work and it has also made us take a very close look at what corporate donations mean to us and our mission. Aveda is Greengrants only corporate donor and though the relationship has grown up over recent years, especially when the Earth Month partnership began in 2007, Greengrants realised that we had to develop policies around corporate gift acceptance.
' Aveda has been a mostly hands-off corporate partner in regards to the actual grantmaking programmes that we do. However, in the world of communications they have taught us a lot. The partnership with Aveda has really opened our eyes to a marketing and public relations world that we were pretty unaware of before. They have helped us understand what messages work in the public eye, which has increased our ability to raise money from other individuals as well.
' The traditional corporate model of finding the cheapest sources for ingredients and extracting without regard for the sustainability of the products or people is not sustainable. Therefore we think that it is essential for any corporation to be involved in finding sustainable ways to support the ingredients and the communities that it depends on for its profits.
' Greengrants did not have much of a public presence prior to its partnership with Aveda. The Earth Month programme has allowed our organisation to reach people all around the world through their stores and salons. During the last Earth Month, we were able to put brochures about our work on Water Justice in salons across the US and Europe. Last year, a store in New York hosted an art exhibit of photography on some of our grantees in Ghana. That project drew attention to the store and a lot of attention to our cause as a result.'
