Wes Pedersen (8/25):
Ron, CSR is not in vogue among companies struggling to hang on. There was a time when I thought it a high commendable notion; now is no longer the time. (See my thoughts in the O'Dwyer file.) It's at the point that Tom Peters, for whom CSR wss a staple of his business success lectures and books, managed to write a full FT column on corporate "kindness" without once mentoning CPR. If CPS were in favor now, he would have been all over it.
Ron Levy (8/25):
Wes you genius, see if you can agree that the key PR decision is not whether CSR is "in vogue" or "in favor now" just as what's in vogue shouldn't determine whether we buy fire insurance and innoculations for our children.
If we see serious PR dangers ahead, as most of us do in this time of financial turmoil and unemployment, conservative PR common sense is to protect ourselves.
Peril: companies that raise prices to meet rising costs may be called "profiteers." Drug companies are lambasted but when you look into it, their price-earnings ratios are no higher than companies in other industries that are less risky.
Every time a drug company comes out with a new life-saving product, there is an old risk of
losing billions because ALL drugs have side effects so almost ANY drug company runs the risk of being sued out of business if side effects are worse than expected.
"Why not test products more before selling them"
souds like a great idea. But it's not if someone in your family may die soon or suffer more if an apparently good drug is held up for years "to be more sure."
Peril: Although Wal-Mart and other compnies often pay MORE for labor than smaller firms and get ten times as many job applications as there are jobs, the stores are accused for not paying still more since they make billions a year.
Peril: As more and more American companies
struggle to stay competitive and solvent by sometimes buying high-quality but low-cost components abroad, these American companies are accused of "exporting jobs."
All the above can sound like someone else's problem if you assume no one will blame some of America's economic troubles on YOUR company. But if you do see that possibility, it's lke seeing the peril of fire. You can see why CSR can be sensible just as fire insurance and inoculatios are sensible whether or not CSR seems to be in vogue.
Nor is self-protection the only reason for CSR. "Love thy neighbor" is not a crazy idea and some companies really DO. If you're a company that loves your neighbor and loves mankind and and also loves the idea of protecting your corporate neck, it can pay to reallocate the corporate charity budget so you spring for a few million a year to protect our air and water, do something more for our fellow American human beings who are living in poverty, and help researchers like Dr. Andrew Zelenetz find a cancer vaccine to maybe save one in three Americans now living.
It's charity, and fashionable enough, that not only begins at home but may well end up there, as is promised "tenfold."
Wes Pedersen (8/27):
Ron, I trust you have made your arguments to the Wall Street Journal.
Old Timer (9/07):
Think about it. I'm in favor of companies being generous but Ron cites Walmart's problem as one that CSR could eliminate or at least relieve. In truth, even if Walmart gave a huge amount to all three good causes Ron suggests--Stanford, Cleveland Clinic and Memorial Sloan-Kettering-- does anyone think it would make the public forget that Walmart gives its workers less pay and benefits than Target and the unionized supermarket chains with which Walmart competes? Walmart's problem may soon get worse! Now they are blamed mainly for low pay but look at the PR problem if the unions start blaming Walmart for spending billions of American dollars in China which means more jobs for China and fewer jobs for the United States. A company can't use CSR to buy the company's way out of a bad reputation especially if the bad rep seems well deserved.
Ron Levy (9/07):
Over a million Americans work at Walmart because it's a better job than other employers offer them, and over 150 million Americans shop at Walmart because the public cares more about good prices than about Walmart not paying still more. The public's top priority is self-interest. If a surgeon saves our lives and we may need him again, do we care more about his surgical brilliance or about how many girlfriends he has?
If TV news shows worldwide show us Walmart's CEO Mike Duke and Sloan-Kettering's Dr. Andrew Zelenetz announcing a "Campaign to Save 50 Million Lives," does our PR judgment tell us Walmart's customer total may go up 10% and that 20 million Americans may PRAY for Walmart?
A PR "Law of Primary Association" is that when we hear a company name, we think of a main thing. If "Walmart" calls to mind "the cancer-fighting company," will that hardcore goodwill help Walmart? Also will it perhaps help US importantly? We value baseball players for their hits, artists for their art and companies for how they help us. Some people think PR is "blue sky" but it's truth. PR helps people see the truth about a goodness--and PR guides clients to create goodness including CSR so 20 million Americans may pray to God for your company to succeed. Just as PR firms, law firms and accounting firms rep foreign accounts, many American consumers buy imported cars.
Most of our consumer electronics, oil and shoes are from abroad. So is much of our lumber, furniture, fish, rice and wine. All stores including Walmart sell what the public wants.
I'm not a 100% fan of Walmart because they sold me a toaster that's not as good as it probably should be but it's too good to throw out. Still, an important truth is that for the 150 million Americans including older and unemployed people who buy at Walmart, their prices are terrific and are a big help. Also Walmart is more honest than many other retailers. No mail-in rebates that may never come. No difference between price on the shelf and price rung up by the cash register.
No asterisks on advertised prices; you pay what the ad says. Millions of people appreciate Walmart, and if they do CSR wisely, millions of people will pray for them. |