Though the difference between social entrepreneurship and corporate social responsibility is thin and blurred, it is crucial to separate the two.
For this article, the difference shall revolve around the word impact. If the company considers impact before profits or the bottom line, it’s a social enterprise.
Conversely, suppose a corporation considers profitability or the bottom line before registering its environmental impact.
In that case, it will be highly concerned with regulating its operations and ensuring that they do not harm society, which anchors its existence.
That entity is employing corporate social responsibility (CSR).
The two (2) approaches strongly affect the brand and its positioning in the customer’s mind. An immediate example of social entrepreneurship is the telecommunications giant Econet, which supports underprivileged students attending schools and universities through Capernaum Trust.
Econet’s profit margins do not determine this. It is an integral part of Econet’s high purpose in the country: empowering vulnerable students to change their lives.
This social entrepreneurship, which we sometimes refer to as cause-related marketing, unlocks unlimited value for brands if implemented strategically.
- Time running out for SA-based Zimbos
- Sally Mugabe renal unit disappears
- Epworth eyes town status
- Commodity price boom buoys GB
Keep Reading
I will, therefore, focus this article on giving brands a guide on effectively choosing a cause-related marketing intervention to edify brand equity.
In 2003, Pampers and Unicef funded 300 million tetanus vaccines worldwide.
This is a good example of a brand that is defined and wired to change lives and elevate societies to reach their full potential.
Though the decision by these two brands seemed to have been reached easily, it is never as simple as it reads.
While the afore-stated brands struck the correct code, the fast-food brand KFC, for instance, 2014 launched what it dubbed the pink ‘Buckets for the Cure’ to heighten the fight against cancer.
However, it prompted a tidal wave of backlash with complaints that eating fatty food can cause breast cancer.
Though the cause was well-intentioned, it pushed the brand to the wall as it battled to contain the unnecessary attention it attracted to itself.
In this regard, it is therefore fundamental to take an in-depth assessment of the best approach towards selecting the right cause for the organisation to support:
Everything should be founded on the values and skills
In seeking the right cause to support, it is critical to look for interventions that align with the organisation’s values and skills.
This will hinge on the experiences and passions that align with the business’s vision and mission statement.
There is no point in venturing into a cause that you have limited skill in driving forward. Once the company has decided to drive a cause, it should be ingrained within the organisational DNA through its vision and mission statements. This will enable it to be sustainable in the long term.
Chose a cause that is close to your heart
Choosing a cause the brand will support should be a ‘matter of the heart’. It should be borne out of the passion of the business’s team members or owners so that it is mainstreamed in the day-to-day brand existential narrative.
These issues are close to the heart of the brand drivers.
Involve employees
In settling for a cause to support, employees play an integral role in keeping the vision alive and effectively discharged.
It is a golden opportunity to mobilise employees and show why their work is part of the bigger picture of improving the world and their role as change agents.
In the 21st century, work is an intrinsic value rather than a means of making money.
Background checks on the cause-marketing effort
Remember that the choice of charitable intervention is as good as the choice for business partners, buying a business, or making any other investment decision which calls for due diligence.
This will guarantee that the revenue the brand has sweated for all these years will reach the intended purpose.
It also requires a thorough assessment of the goals and strategic vision of the charitable organisation to partner so that you can make informed decisions that further consolidate the brand position and competitiveness.
Be long-term in outlook
A long-term brand relationship should define the pulse of the brand and company in the distant future rather than a transactional relationship.
The market measures the level of the brand’s commitment to the cause it has chosen to be part of until the objectives have been achieved.
From such cause-related marketing efforts, a brand builds critical muscle that draws customers to it as a life-changing brand that is determined to change societies and inspire positive change in people’s lives.
This builds loyalty, which in the long run reduces marketing costs and increases repeat purchases of the brand compared to competing offerings.
Therefore, durable brands should invest in cause marketing to consolidate their brand equity and profitability in the future.
The future of brand purpose in the age of AI
Given the foregoing, entrepreneurs ought to utilise AI to enhance the brand cause and purpose through the following:
Sustainability and Ethical Practices: AI can help brands optimise their supply chains, reducing waste and promoting sustainability.
Social Responsibility Initiatives: AI can identify and analyse social issues relevant to a brand’s mission.
Innovation and Product Development: AI can drive innovation by analysing market trends and consumer needs, helping brands to develop new products or services that align with their purpose and fill gaps in the market, thus enhancing their relevance.
Authentic Communication: AI can assist in generating content that reflects the brand’s values authentically. Tools like natural language processing can help ensure that messaging aligns with the brand’s tone and purpose, strengthening brand identity and loyalty.
The investment in brand purpose and its causes creates a lasting impact in communities and builds a strong base of customer loyalty as customers are keen on being part of a bigger societal impact intervention than being mere consumers of commodities.
*Dr Farai Chigora is a businessman and academic. He is a senior lecturer at the Africa University’s College of Business, Peace, Leadership and Governance. He is also a global business modelling practitioner. His doctoral research focused on Business Administration (Destination Marketing and Branding Major, Ukzn, SA). He is into agribusiness and consults for many companies in Zimbabwe and Africa. He writes in his personal capacity and can be contacted for feedback and business at fariechigora@gmail.com, www.fachip.co.zw, WhatsApp mobile: +263772886871.
*Dr Tabani Moyo is an extra-ordinary researcher with the University of North West, South Africa’s Social Transformation School. His holds doctorate in Business Administration (Research focus on new media and corporate reputation management, UKZN), chartered marketer, fellow CIM, communications and reputation management expert based in Harare. He can be contacted at moyojz@gmail.com @TabaniMoyo (X)
