The CSR Newsletters are a freely-available resource generated as a dynamic complement to the textbook, Strategic Corporate Social Responsibility: Sustainable Value Creation.

To sign-up to receive the CSR Newsletters regularly during the fall and spring academic semesters, e-mail author David Chandler at david.chandler@ucdenver.edu.

Thursday, October 16, 2008

Strategic CSR - P&G

The article in the url below presents the opportunities and challenges for firms seeking to engage with stakeholders online (Issues: Stakeholder Relations, p138). The article is a review of a new book titled ‘Groundswell’ that profiles different case studies of firms’ attempts to establish an online dialogue with stakeholders (primarily customers):

“As part of P&G's embrace of "social technologies", the site launched a messageboard late last year allowing customers to share their views on stain removal and, more controversially, packaging.”

The postings by customers, as the article illustrates, were not very complimentary. But P&G’s mistake was not setting-up the site, but giving the impression of not listening to or acting upon the issues that were raised:

“… the boards contain no response to the gripes, nor has the company taken down repetitive postings. … P&G has opted to let its customers talk openly on its website, but it has not shown it is taking notice.”

The book presents a number of examples (both good and bad) of firms’ attempts to establish this virtual dialogue with their stakeholders. It argues that, even done with the best of intentions, offering an opportunity for stakeholders to debate the virtues of a product can end up harming a firm’s reputation if it is not done either genuinely or well. As such, firms need to understand their stakeholders, what their concerns are, and who among them are likely to participate in online forums before beginning:

“Lego, for example, finds "Lego Ambassadors" among its AFOLs, or Adult Fans of Lego, and uses them to communicate with a global online community of adult hobbyists who account for 5 to 10 per cent of the toymaker's business.”

Take care
Dave

Bill Werther & David Chandler
Strategic Corporate Social Responsibility
© Sage Publications, 2006
http://www.sagepub.com/Werther

Dangerous e-liaisons with the customer
By Jonathan Birchall
814 words
5 June 2008
Financial Times
USA Ed1
12
http://us.ft.com/ftgateway/superpage.ft?news_id=fto060420081503173239