Know-How Exchange : Student Questions

Well, what do you think?

Please give us some examples of your thoughts on the topic

hi j.rhodes

great answers above. here is my 2 cents.

Companies engage in CSR to
# Improve their Corporate image and thus getting benefit in the business due to the increases awareness of the company.
# Change the implicit negetive image due to nature of business/industry.

What i have seen in Bangladesh is that companies/corporate houses that are engaged in seemingly controversial business in Bangladesh or anywhere in the world are more inclined to engage in such acitivities.

Examples are the National Tree Plantation Drive campaign and Youth Smoking Prevention Campaign by British American TObacco Bangladesh. Being in a controversial industry as tobacco/cigarette selling which definitely is a major cause of cancer and resulting death, thru' these campaigns BATB is trying to project an image that it accepts its harmful nature of business to society and tries to compensate in some way.

Another example is the Nationwide Polio Immunizatin Campaign by Unocal Bangladesh. As it is in Oil/Gas exploration business in areas where their activities cause environmental damage, displacement of indeginous/native people, they do these activites to project an image of Community-Oriented company.

Example of Not-so-Controverisal company engaged in CSR is also there. Novartis Bangladesh Limted donates Free Medicine and Baby Food to the largest rural microcredit organization in Bangladesh called BRAC for distribution of free medicine and babay food through out BRAC's day care centers which gives poor people and children access to medicines and babay foods free of cost.

The reason is MNC pharma companies are always under scrutiny of charging higher prices of medicines (specially research drugs and even in generic drugs). To deflect this criticism the companies undertake CSR programs, Novartis Bangladesh is no exception.

But the bottom line is the company improves its image, increases awareness of the corporate and product brands and ultimately makes more profits through incresed sales.

btw, the following is the link to a question on the same topic asked earlier

https://www.marketingprofs.com/ea/qst_question.asp?qstID=2569#17332

hope this helps.

cheers!!