Also, formed at the organizational level, a social alliance involves a high level of management complexity and places larger challenges to monitor process and outcomes (Berger, Cunningham, and Drumwright 2004). A review of the literature also reveals that, with few exceptions (Berger, Cunningham, and Drumwright 2006), social alliances have rarely been studied in the marketing domain, nor examined with well-established consumer and market indicators. The reasons for the lack of attentions may be several. First, while it is increasingly recognized - the importance of social alliances both for businesses and social issues- the actual instances of such practices are still relatively limited. Second, the social alliance marketplace is still immature. The potential partners in such social alliances (e.g., NGOs, community organization, governments, and other social organizations and professional associations) usually do not have a clear idea of what business model they could follow, and what societal and economic outcomes should be pursued, measured, and monitored
24 (Chen, Moore, and Renaud 2009). Third, generating wide and immediate CSR awareness to consumers is a bigger challenge for a social alliance. Unlike CRM and cause sponsorships, where exposure to the brand can literally be repeated or prominent as a result of the promotional campaigns, a social alliance is often carried out in lack of such commercial campaigns, more importantly with fewer direct consumer interfaces. Value Chain CSR: In this study, we define “value chain CSR” as CSR practices that engage creating value for social wellbeing or supporting a social cause through daily operations of the company’s value chain system, which includes: R&D, supply chain management, product portfolio, and marketing, etc. The components and guidance for practices are presented in Figure 2.1. As suggested by its name, value chain CSR is pursued not out of particular partnerships with nonprofit agents, but mostly by the business through its internal daily functions. According to this definition, examples of value chain CSR can include the following practices. Figure 2.1 Value Chain CSR Components 1. Supply chain management: Corporations hold themselves responsible for the social and environmental impacts arising along the supply chain. CORPORATE VALUE CHAIN Supply R & D Product / Services Sales and Advertising
25 2. R & D: The guidance of research and innovation of products and/or services to cater to long-term consumer interests reflecting social, health, or environmental valuations. 3. Portfolio of products: The offering of products or portfolio of products and/or services that are socially responsible and/or environmentally friendly. 4. Sales and advertising: The implementation of voluntary measures on marketing, including: socially responsible pricing and advertising, customer education, etc., A guiding thought behind a value chain CSR effort is that, in order for a company to create value for its shareholder over the long term, it must also bring value to the society (e.g., Porter and Kramer 2006; 2011).
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- Fall '19
- Marketing, Corporate social responsibility, CSR activities, social alliance