Sunday, 7 February 2010

Think Globally - Act Locally

The debate about “Think globally - act locally” has been a well-discussed topic in PR world. Should you consider local customs in global campaigning or not? The technological communication tools have enabled us to communicate globally. Companies now need to be global and their communication strategies have to involve global PR. However the cultural differences matter. When operating in a particular country, the nations political systems and culture shapes the PR practice.

The principles of balancing global operations with respect for local culture extend to managing communications, in which cross-cultural understanding can make a significant difference in the effectiveness and success of a global campaign.

Cross-cultural communication came into its own in the mid-1940s. During the “Cold War,” the U.S. established the Foreign Service Institute, bringing together linguists and sociologists, among others, to help the corps develop language competency as well as an understanding of and sensitivity to distinct cultures.

Effective global communications has to take into consideration how local attitudes and behaviors differ from the global communication strategy. When building a campaign, it is essential to have a clear message and a defined audience, considering who the audiences are and where they are, and what local factors might influence the result of that campaign. Something as simple as observing local seasonal or religious holidays when timing the launch of a new campaign can have a direct impact on the success or failure of the campaign.

When setting up local communication team, a good idea will be to employ locals for the campaign as they have a better knowledge about the audience you are trying to reach. When PR companies run campaigns they need to take the local needs into consideration, otherwise the results might turn to the worse. International companies should first act locally, and then in order to sell their products, act globally.


Saturday, 6 February 2010

Is Corporate Social Responsibility Window Dressing?

This post is part of an argument that is 'for' the following statement:

"CSR is nothing more than window dressing and business should focus on making money."

There are many critics arguing for and against CSR, many believe that CSR distracts from the fundamental economic role of businesses; that it is nothing more than superficial window-dressing.

To take the example of simple corporate philanthropy, when corporations make donations to charity they are giving away their shareholders’ money, which they can only do if they see potential profit in it.

This may be because they want to improve their image by associating themselves with a cause, and use a cheap way of advertising, or to contradict the claims of pressure groups, but there is always an underlying financial motive, so the company benefits more than the charity.

According to David Henderson (2001) CSR is criticised as being a PR stunt, bearing in mind that most CSR workers in companies sit in the communications and PR departments, and considering that the strategies of CSR - dialogue with NGOs, codes of conduct, social reports - were all designed and developed by PR companies such as Hill and Knowlton.

CSR helps to greenwash the company's image, to cover up negative impacts by giving the media positive images of the company's CSR credentials. As Deborah Doane points out in 'From Red Tape to Road Signs', CSR enables business to claim progress despite the lack of evidence of provable change.

What does all that implies? CSR is pure window-dressing.


Milton Friedman famously argued that the ‘business of business is business’, the sole responsibility of the organisation are its shareholders, and providing profits for them. He acknowledged legal and ethical constraints on business activity, emphasising that the organisation should not harm society.

Corporations should obey the laws of the countries within which they work; other than that corporations have no other obligation to society.

Follow government regulations and avoid CSR.

CSR is seen as catering to public relational purposes. Corporate responsibility is used as conventional public relations with the aim of distracting society.

Instead of focusing on CSR corporations should focus on making money. The increase of profits in a company benefits the economy, which benefits the citizens of that economy. ‘The Social Responsibility of Business is to Increase its Profits.’

Big companies move their production to places like china and then “they don’t pollute”. 40% is caused by Europe and Americas export. Covering up negativity, in many cases simply reinforces the criticism that CSR is nothing more than a PR exercise.


Shell has a much-publicised CSR policy and was a pioneer in triple bottom line reporting, but this did not prevent the 2004 scandal concerning its misreporting of oil reserves, which seriously damaged its reputation and led to charges of hypocrisy. In Africa the communities where Shell operates they are still waiting for schools and hospitals.

In our media saturated culture, companies are looking for ever more innovative ways to get across their message, and CSR offers many potential ways of doing so.

The dream that socially responsible corporations can transform our society is an illusion.

SCR is nothing more than window-dressing!

Reference

David Henderson (2001). Misguided Virtue, False Notions of Corporate Social Responsibility. http://www.iea.org.uk/files/upld-release5pdf?.pdf

Deborah Doane. From Red Tape to Road Signs http://www.corporation2020.org/corporation2020/documents/Resources/Doane.pdf

Milton Friedman (1970). The Social Responsibility of Business is to Increase its Profits. http://www.colorado.edu/studentgroups/libertarians/issues/friedman-soc-resp-business.html

Tuesday, 2 February 2010

Corporate Branding


Brand Image

The Apple logo is one of the most famous logos in the world. Apple fans not only put this logo on their vehicles to show their loyalty, they go to the extreme of tattooing themselves with it, a level of dedication very few brands achieved.

Also it was kind of iconic about taking a bite out of an apple. Something that everyone can experience. It goes across cultures. An interview with Rob Janoff, where he is telling about the logo design and its history. " I was told by my boss that there is a computer term called byte". And I was like: "You're kidding!" So, it was perfect, but it was coincidental that it was also a computer term. At the time I had to be told everything about basic computer terms.

In advertising Apple used great leaders like Cesar Chavez, Gandhi and the Dalai Lama, to persuade people that a Macintosh might also allow them to "Think Different."

Brand reputation

Ask marketers and advertising experts why Mac users are so loyal, and they all cite the same reason: Apple's brand. Apple, of course, is the archetypal emotional brand. It's not just intimate with its customers; it is loved.

Apple is about imagination, design and innovation. Mark Gobe said about Apple "It goes beyond commerce. This business should have been dead 10 years ago, but people said we've got to support it." "Absolutely, completely dead. The brand is all they've got. The power of their branding is all that keeps them alive. It's got nothing to do with products." "It's like having a good friend," Gobe said. "That's what's interesting about this brand. Somewhere they have created this really humanistic, beyond-business relationship with users and created a cult-like relationship with their brand.

It's a big tribe, everyone is one of them. You're part of the brand.

The company has established a "heartfelt connection" with its customers. This can take several forms, from building trust to establishing a community around a product. In Apple's case, its products are designed around people: "Take the iPod, it brings an emotional, sensory experience to computing," said Steve Jobs. "Apple's design is people-driven."

It’s been pointed out that seeing Apple’s cool logo makes you feel more creative and smarter. And it’s not only about that — how you feel — but how you act. That’s an interesting proposition: in a collective spirit of self awareness, you’re inclined to actually feel smarter and more creative about your sense of personal self awareness, when you actually see an exemplar of creativity — Apple.

The Apple brand personality is about lifestyle; imagination; liberty regained; innovation; passion; hopes, dreams and aspirations; and power-to-the-people through technology. The Apple brand personality is also about simplicity and the removal of complexity from people's lives; people-driven product design; and about being a really humanistic company with a heartfelt connection with its customers.

Brands are more important than products. Products have limited life cycles, but brands can last forever.