write corporate social responsibility

timer Asked: Oct 17th, 2018
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Question Description

1.) Assess the costs and, more importantly, the many substantial and strategic

benefits of doing a sustainability and CSR. Utilizing the class readings and case

discussions in your answer This part of the paper is 66% of final paper grade.

2.) Read and assess a single company’s CSR( Which is Uber Company), sustainability, or citizenship report.

First, you have to choose a report that no one else in the class has chosen, and list

the report chosen on the Canvas discussion board. Explain the extent to which

the company recognizes and takes responsibility for the various social and

environmental impacts

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For the exclusive use of B. HARASANI, 2018. 9-410-121 REV: SEPTEMBER 28, 2011 CHRISTOPHER MARQUIS POOJA SHAH AMANDA TOLLESON BOBBI THOMASON The Dannon Company: Marketing and Corporate Social Responsibility (A) At the beginning . . . I set the challenge of putting industry to work for people, reconciling business and society at large. I am profoundly convinced that it is possible to be at once efficient and truly human. In leading a business, we must use our hearts as well as our minds, remembering that while the earth’s sources of energy are limited, those of truly motivated people are not.1 — Antoine Riboud, CEO of Danone (1972) At the end of 2009, The Dannon Company (Dannon) was at a strategic crossroads. Sixty-seven years after first entering the U.S. market, Dannon was poised to become the leader in America’s domestic yogurt sector. As Michael Neuwirth, senior director of public relations, considered strategies that would take the company to the next level, he wondered how Dannon’s long-standing, deeply ingrained corporate social responsibility (CSR) efforts could play a role. Dannon was a U.S. subsidiary of Danone, one of the largest health-focused food companies in the world. Danone’s global business focused on fresh dairy (e.g., Activia yogurt), bottled water (e.g., Evian), medical nutrition, and baby nutrition. Dannon manufactured and marketed fresh dairy products in the U.S. and was the No. 2 player in the domestic yogurt market in 2008. Interestingly, Danone viewed the U.S. as an emerging market for yogurt, and therefore Dannon’s marketing efforts had focused on growing U.S. yogurt consumption and expanding the category, while also growing its brands. Dannon, following in the footsteps of Danone, had maintained a strong commitment to CSR. CSR was not a stand-alone focus area, but integrated into the company’s overall mission of “bringing health through food to as many people as possible.” To date, the company’s CSR commitment and programs had been very internally focused. For example, through its foundation, The Dannon Institute, the company was active in research and education on healthy eating, but few consumers were aware of such activities. Yoplait, a portfolio brand of the U.S. food conglomerate General Mills and Dannon’s top competitor, was well known for its annual “Save Lids to Save Lives” breast cancer awareness campaign. With the strong connection between Dannon’s production of health and wellness foods ________________________________________________________________________________________________________________ Professor Christopher Marquis, Pooja Shah (MBA 2010), Amanda Tolleson (MBA 2010), and Research Associate Bobbi Thomason prepared this case. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsements, sources of primary data, or illustrations of effective or ineffective management. Copyright © 2010, 2011 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call 1-800-5457685, write Harvard Business School Publishing, Boston, MA 02163, or go to www.hbsp.harvard.edu/educators. This publication may not be digitized, photocopied, or otherwise reproduced, posted, or transmitted, without the permission of Harvard Business School. This document is authorized for use only by BAYAN HARASANI in Sustainabilty & CSR 3 taught by MARK KAY, Montclair State University from Sep 2018 to Mar 2019. For the exclusive use of B. HARASANI, 2018. 410-121 The Dannon Company: Marketing and Corporate Social Responsibility (A) and its commitment to health and nutrition-based CSR activities, Neuwirth saw an opportunity to communicate these synergies to consumers and potentially enhance the company’s success. He wondered, “Should Dannon start to proactively communicate to consumers about its CSR initiatives, and if so, what benefits and risks would Dannon face?” Before posing this question to the executive committee, Neuwirth decided to feel out the perspectives of various stakeholders within the organization, including members of the marketing, human resources, and corporate affairs departments. Some of the specific questions he planned to ask these stakeholders were: Should we communicate Dannon’s CSR activities? What would be the best means to do so? Should it be a corporate-level or brand-level campaign? What would Danone think about this decision? What would be the implications on Dannon’s current CSR initiatives? What, if anything, would it require in terms of additional CSR programs? Danone Danone traced its heritage to Barcelona, Spain, in 1919, when Isaac Carasso wanted to create yogurt with inherent health benefits. He introduced “Danone,”a an innovative yogurt product made with pure lactic ferments he had obtained from Institut Pasteur in Paris, which helped treat intestinal disorders and was initially prescribed by physicians. Ten years later his son, Daniel, founded Danone in Paris, which leveraged its unique emphasis on health to differentiate itself from other yogurt manufacturers. Upon his father’s death in 1939, Daniel Carasso became CEO and in subsequent years Danone embarked on a rapid expansion plan in Europe through mergers with Gervais, a leading French fresh cheese business, in 1967, and with Boussois-Souchon-Neuvesel (BSN), a leading glass containers and beverages company, in 1973. In the 1980s and 1990s, the conglomerate, renamed BSN, became one of the world’s largest food manufacturers with a presence in 30 countries. In 1994, CEO Antoine Riboud began to lead BSN through a strategic reorientation, refocusing on the company’s products with health and well-being benefits. As a first step, the company was renamed Danone, after the name of the company’s best-known international brand. Riboud and later his son, Franck (who became CEO in 1996), reorganized the company around four focus areas (dairy, bottled water, baby nutrition, and medical nutrition) and as a result divested several profitable, though noncore, businesses and acquired others. In 1997, Danone made its debut on the New York Stock Exchange (NYSE). “We are not listing on Wall Street simply for the U.S. market,” explained Chairman Riboud, but “just as much to consolidate our position as leader,” particularly in dairy products and water.2 Danone was already quoted on the Paris, Brussels, and Swiss Bourses and on the London Stock Exchange, but said it was now turning to the NYSE in order to raise its international profile.3 In 2008, Danone posted net revenue of $21.2 billion and employed 80,143 people worldwide. Its dairy and medical nutrition businesses ranked No. 1 worldwide, with bottled water and baby nutrition holding No. 2 positions. a Danone, meaning “Little Daniel,” was named after Carasso’s son, Daniel. 2 This document is authorized for use only by BAYAN HARASANI in Sustainabilty & CSR 3 taught by MARK KAY, Montclair State University from Sep 2018 to Mar 2019. For the exclusive use of B. HARASANI, 2018. The Dannon Company: Marketing and Corporate Social Responsibility (A) 410-121 A Focus on Social Responsibility4 To bring health through food to as many people as possible. — Danone Mission Statement Danone historically took a holistic approach to social responsibility and, as the mission statement indicated, social values were deeply embedded in the culture of the company and the business. Antoine Riboud communicated his vision of Danone’s dual commitment to economic performance and social responsibility in 1972 when he stated, “Corporate responsibility does not end at the factory gate or at office doors. The jobs a business creates are central to the lives of employees, and the energy and raw materials we consume change the shape of our planet.” According to senior leadership, social responsibility was as fundamental to Danone’s purpose as its economic performance. This was referred to as the “double project” (in French, le double projet), and stipulated an equal respect for the social impacts and financial results of business decisions. Employees, such as Tony Cicio, the vice president of human resources at Dannon, took pride in the authenticity of Danone’s CSR activities, explaining that it’s “not done for the ‘wrong reasons,’ it’s really done from the heart.” He described Danone’s approach as “humble” and “internal,” further explaining that it “is not about ticking a box or proving something to the public; it’s engrained. The reason the business developed in the first place. [It’s] not about looking good externally; it’s a part of our culture.” Danone’s social responsibility focused on three areas: “Nutrition and Health,” “People,” and “Nature” (see Exhibit 1): Nutrition and Health: At the center of the company’s CSR activities were the Danone Institutes, the first of which was established in 1991 in three countries in Europe and in 1997 in the U.S. as a nonprofit organization with the mission “to develop and disseminate scientific knowledge on diet and nutrition to benefit public health” through a collaboration with academics and scientists focused on nutrition research and health professionals. The institutes focused their efforts around children’s nutrition education in ways that were pertinent to each region. For example, program areas in the United States included promoting children’s nutrition, especially preschool nutrition education, and fostering the success of tomorrow’s leaders in the field of nutrition. As of 2010, there were 18 institutes worldwide (established by local Danone companies) sponsoring over 800 research projects and 60 continuing education programs for the general public, at a value of €16 million in financial support.5 For example, in the United States, amidst the struggling economy of 2009, the Dannon Institute produced a webinar on “Maintaining School Wellness during Tight Budget Times,” while in Indonesia, the institute convened a meeting of experts on “Child Growth and Micronutrient Deficiencies.” The network was continuing to grow, with the most recent establishment in 2008 of the Southern Cone Danone Institute, representing the countries of Argentina, Chile, and Uruguay. People: Danone established both internal and external programs. Internally, the company focused on the development of employees through activities such as the “Danone Way,” a management tool designed to enable managers to assess performance along multiple dimensions (e.g., quality, ethics, management, environment), and the integration of social goals in the remuneration of the company’s 1,500 directors and key managers. For example, at Dannon US, 30% of employees’ variable compensation was tied to the company’s social and environmental performance. Externally, Danone supported its consumers, its suppliers, and the local communities in which it operated. For consumers, the company not only created 3 This document is authorized for use only by BAYAN HARASANI in Sustainabilty & CSR 3 taught by MARK KAY, Montclair State University from Sep 2018 to Mar 2019. For the exclusive use of B. HARASANI, 2018. 410-121 The Dannon Company: Marketing and Corporate Social Responsibility (A) nutritional education initiatives, but also updated the nutritional formulas of over 600 products to be healthier. Suppliers were expected to maintain the social principles of Danone, in addition to ensuring product safety and promoting the economic development of local producers. The company was also actively involved in local communities, committing an additional €5–€6 million to sponsor local events and provide product donations and emergency aid relief. Additionally, in 2005, Danone’s Volvic brand collaborated with UNICEF to launch the “1 litre for 10 litres” initiative, which financed the digging of wells to increase clean water access in Africa. Nature: Danone took a firm stance on sustainability, with a target of achieving carbon neutrality on five of its brands by 2011. Accordingly, in 2001 it instituted the “Sensible Plants” program to reduce water consumption by 30%, energy consumption by 20%, and packaging weight by 10%, and increase waste recycling to 80%; by 2008, all targets, with the exception of water consumption (93% of target), had been achieved and surpassed. Further, between 2005 and 2008, the company spent €90 million on environmental investments, including tools to measure carbon and water footprints. Danone also expected its suppliers to promote environmentally friendly farming practices and planned on developing tools that integrate sustainable development indicators into supplier evaluation and monitoring. As a testament to its commitment to social responsibility, Danone was selected for the Dow Jones Sustainability Index from 1998 to 2008, and for the INNOVEST classification of the world’s top 100 companies with high involvement in sustainable development from 2003 to 2008. Danone Enters the U.S. Danone originally entered the U.S. market in 1941, when Daniel Carasso immigrated to the United States in search of a safe haven during World War II. In 1942 Carasso founded Dannon Milk Products, Inc., in New York, changing the name from Danone to Dannon to make it sound more “American.” At its inception, the company faced a major challenge, because the U.S. yogurt market was practically non-existent—most Americans had never even tried yogurt, let alone purchased it. As a result, Carasso was forced to think innovatively in order to garner interest among the skeptical American consumer base. In 1947, Carasso achieved a major breakthrough with the introduction of the “Fruit on the Bottom” yogurt product; its perfect balance of tartness and sweetness suited the American palate and made it an instant success. In 1955, Dannon proved innovative once again, introducing a low-fat yogurt that appealed to health enthusiasts. Although the decades after World War II brought various structural and ownership changes, including a period when the brand was owned by Beatrice Foods, in the 1980s Dannon once again became an “official” part of Danone. By then, the company had grown to 17 product categories (SKUs) and was poised for additional growth. The remainder of the 1980s and the 1990s were characterized as periods of innovation for Dannon. In 1988, the company capitalized on the new FDA approval of aspartame and launched “Dannon Light,” the company’s most successful product launch until that point. Moreover, it developed many novel products targeted at the children’s sector and the desserts sector, including premium frozen yogurt. After Danone’s strategic reorientation around health began in 1994, innovation at Dannon changed as product development became anchored on health benefits. In addition to the Dannon business, Danone’s U.S. subsidiaries included Danone Waters of America (Evian bottled water) and Stonyfield (organic yogurt). 4 This document is authorized for use only by BAYAN HARASANI in Sustainabilty & CSR 3 taught by MARK KAY, Montclair State University from Sep 2018 to Mar 2019. For the exclusive use of B. HARASANI, 2018. The Dannon Company: Marketing and Corporate Social Responsibility (A) 410-121 Dannon’s Relationship with Danone Dannon was a wholly owned subsidiary of Danone. At Danone, local decision making was encouraged and trusted. Local executives were completely responsible for the profit and losses of the country-based business units (CBUs). While the scientific formulas for many products were created at the global headquarters, specific taste profiles were typically adapted to a local environment. Dannon had a fiduciary responsibility to its parent and was accountable for a set of deliverables and data for reporting purposes. For example, Dannon was obligated to meet annual targets for profitability, operating free cash flow, manufacturing safety, and environmental sustainability. Danone also worked to train its leaders and communicate the broader company values. Programs, such as Danone Way, a leadership training program, ensured cultural cohesion and outlined the practices through which Danone operated. The company values were referred to with the acronym HOPE: humanism, openness, proximity, and enthusiasm. “Humanism” embodied being people oriented and was linked to the mission of health through food. “Openness” addressed the goal of an open global culture. For example, CEOs and senior management regularly transferred among Danone subsidiaries in different countries, which created exciting opportunities and growth platforms for individuals and the firm as a whole. “Proximity,” with its Latin root for being close, emphasized the need for local subsidiaries to meet their financial commitments to the parent company. As Cicio said, “Our responsibility to our parent company is to live the values and deliver financial return.” Finally, “enthusiasm” was the result of the preceding three values that enabled exciting opportunities for individuals and the company. Gustavo Valle, the CEO of Dannon in 2009, exemplified the value of “openness.” He was originally from Argentina, and before starting his position at Dannon US, he was the CEO of Danone Brazil. However, he was not unique; of the 300 employees at the Dannon US headquarters, 50 were born outside the United States. Marketing Vice President Marc Jove, for instance, was born in Barcelona and before taking his current position, he was the marketing vice president at Danone Argentina. The U.S. Yogurt Industry Sixty-seven years after Dannon introduced yogurt to the U.S., Danone still viewed the U.S. as an emerging market for yogurt. In 2007, U.S. yogurt consumption per capita was only 11.8 lbs, versus 62.4 lbs in Switzerland and 42 lbs in France (see Exhibit 2). From 2003 to 2007, yogurt consumption grew 31% in the U.S., versus only 6% in Switzerland and a downturn of 3% in France.6 These two statistics, combined with the much larger U.S. population, marked the United States as a highpotential growth market for Danone in the next 5 to 10 years. Growth had slowed in the past 2 years, and therefore Dannon continued to focus on growing the yogurt category and proving its relevance to Americans.7 Yogurt was not as core to the American diet as to the European diet. As of 2008, the total U.S. yogurt category was $3.7+ billion, growing at about 1.5% per year.b The main product categories were Staples/Quarts (38%), Light (27%), Proactive Health (13%), Kids (12%), Indulgent (6%), and Drinks (3%). Proactive health, the newest product segment first introduced in a test market by Dannon’s DanActive in 2004, was defined as products with health benefits beyond basic nutrition, such as probiotics for improved intestinal transit and immune function.8 Recent growth in yogurt b The source of most of this sales data is IRI, a database that does not reflect some of the category’s largest retailers, most notably Walmart, where Dannon has a strong position and is growing faster than IRI-covered retailers. 5 This document is authorized for use only by BAYAN HARASANI in Sustainabilty & CSR 3 taught by MARK KAY, Montclair State University from Sep 2018 to Mar 2019. For the exclusive use of B. HARASANI, 2018. 410-121 The Dannon Company: Marketing and Corporate Social Responsibility (A) consumption was driven by the Proactive Health, Light, and Quarts segments (see Exhibit 3). Core yogurt consumers were 45+-year-old women. They were typically from a high- or medium-income household, although low-income household consumption was increasing. Demographics with high potential for growth included 45+-year-old men, 0- to 11-year-old kids, and 25- to 54-year-old women. While 85% of American households had yogurt and consumed it, they significantly traile ...
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Running head; CSR





The benefits and costs of corporate social responsibility
Many leaders in business express varied opinions on the integration of corporate social
responsibility (CSR) with Milton Friedman; the Nobel Prize-winning economist (1970) made
assertions that CSR is made with the intent of increasing on the organizational profits whilst
John Mackey, who is the founder of Whole Foods, felt differently about the essence of CSR in
that he felt that the CSR was, in essence, the representation of capitalism and whereby the
organizations could integrate efforts with the public for the sake of common good. However,
even devoid of beliefs held by different people the implications of CSR cannot be assumed
(Sprinkle, & Maines, 2010). The essence of this paper is to enlist the potential benefits of CSR
and the costs therein in which case the leaders can found their decisions on. Additionally, the
CSR report of the company Uber will be assesed in order to explain the extent to which the
company recognizes and takes responsibility for the various social and environmental impacts of
its business.
Corporate social responsibility
Literature defines CSR differently. For instance, the definition of CSR by the European
Commission (2010) is depicted as a concept in which the companies seek to integrate the
environment and social concerns in such a manner that interactions are upheld. Regardless of the
interpretation, CSR is used to depict the organizations that interact with the environment
voluntarily in a manner that benefits the society (Sprinkle, & Maines, 2010). Corporate
sustainability is used in similar connotation as CSR although long-term value of the shareholders
is projected at this juncture whereby the value is mainly depicted in the governance, ethics,
relationships in the business, transparency, community involvement, financial returns



employment practices, the value of the product as well as the environmental protection are
In this sense, the activities in this threshold mirror the activities of CSR albeit the fact
that they are broad in scope. CSR is made up of activities that mainly focus on the wellbeing of
stakeholders as well as the investors. Therefore, the focus is mainly projected to community
organizations, charitable events, suppliers, employees, customers, as well as the generations of
the future (Sprinkle, & Maines, 2010).CSR delves more so on the contributions made by
stakeholders in terms of products or cash that are charitable and that enhance the organizations in
the community. Under CSR it is normal for the employees to delve in such activi...

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