Question

When marketers work in controversial or polluting industries such as tobacco or fossil fuels, their central activities largely bar them from becoming conscious marketers. How might they engage in CSR in an effort to mitigate the damage that their products cause?

Answer 1

CSR expenditure has become a very important and essential expenditure for any organization to be able to grow in the economy. Many organizations have now formed CSR committees and recognized the fact that CSR expenditure is one of key strategy for long-term business success and growth.

First of all let's understand what CSR expenditure means : In most basic terms, CSR is a company’s legal and moral responsibility towards the community and the environment. What is important for any expenditure to count as a CSR expenditure is that it should not be in the normal course of the business.

Now that we have understood the basic meaning of CSR expenditure, let's discuss how can polluting industries like oil, tobacco etc. can engage in CSR activities to mitigate the damage caused by their products :

CSR expenditure becomes even more relevant for companies working in polluting industries as they already have a form of hatred from the society for the damage caused to environment. In such a case what such companies can do is implement various processes in form of CSR activities as pollution control processes which may be through reduction of waste, sustainable development etc. Also one very effective way for polluting industries is to setup a pollution control panel along with a pollution control partner which shall have the responsibility of controlling the pollution caused by company in check. Pollution control partner can come up with innovative ways to deal with the damage caused by the environment. Another effective strategy could be implementation of Pollution control equipments such as soundproof walls to cancel out noise pollution or high temperature Air Pollution Control equipment devices.

The steps mentioned in the above para are some specific steps which a company may take to address the pollution caused by its activities. However there can be infinite number of other steps which could be possible depending on the type of industry, type of pollution etc. Hence some generic steps to be kept in mind by polluting industries while implementing pollution control activities in form of CSR activities are as follows :

1. Define focus of your organization.

2. Develop the plan

3. Communication is key. Communicate to all stakeholders regarding your plans for such CSR activities and invite their recommendations.

4. Implement the CSR program after following above steps.

5. Ensure effective implementation of the program.

6. Review the results of the program to be able to perform better next time.