BizEd

NovDec2011

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A Downside to CSR IF A COMPANY does not choose its message of corpo- rate social responsibility carefully, that message could backfire, according to a new study. To be received well by customers, that message must line up with their understanding of the company's brand and even their own mindsets. The research was conducted by Carlos J. Torelli, assistant professor of marketing at the Carlson School of Management at the University of Minnesota in Minneapolis; Alokparna (Sonia) Basu Monga, associate professor of marketing at the Darla Moore School of Business at the University of South Carolina in Columbia; and Andrew M. Kaikati, assistant pro- fessor of marketing at the Terry Col- lege of Business at the University of Georgia in Athens. Carlos Torelli Sonia Basu Monga The authors found that if a socially responsible message comes from a luxury brand such as Rolex, consumers' opinions of that brand actually grow more negative. Rolex's brand, the researchers say, is associ- ated with the concept of self-enhance- ment and connotes "dominance over people and resources." On the other hand, if that same message comes from a brand associated with the con- cept of openness, which connotes something "exciting and free-spirited," consumers' opinions remain positive. Apple falls into this category. The same is true for a brand associated with the concept of conservation, such as Aunt Jemima, which implies the ideas of "tradition and protection of the status quo." The authors suggest that consumers often perceive a "motivational conflict" between brands linked with self-enhancement and the idea of social responsibility. They also conclude that consumers who think in more abstract ways are more likely to perceive this conflict than those who think more concretely. "Given that billions of dollars are being poured into CSR activities, knowing which brands are more or less likely to succeed is highly consequential," the authors write. They add that a luxury brand's most well-inten- tioned CSR efforts can backfire unless steps are taken to "avoid negative consequences." "Doing Poorly by Doing Good: Corporate Social Responsibility and Brand Concepts" is forthcoming in the February 2012 issue of the Journal of Con- sumer Research. It is available at www.csom.umn.edu/ assets/166234.pdf. BUSINESS INSIGHTS WORDS OF WISDOM "There are times when it looks like managers aren't evil. You find yourself the head of Cisco or Apple Computer during their heydays, and suddenly it looks like you're brilliant and kind. You're treating your employees well and making money, so it must be that you can do both! But that's an illu- sion that disappears with a market downturn." — Scott Adams, "Funny Business," November/December 2002 (then and now, author of the "Dilbert" comic strip) BizEd November/December 2011 73

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