CHANGING PERSPECTIVE

Issue 08 2014 / Islamic Banker ASIA / 5150 / Islamic Banker ASIA / Issue 08 2014

ENGAGING PERCEPTION THROUGH CUSTOMER-CENTRIC CORPORATE

SOCIAL RESPONSIBILITY INITIATIVES

On the practical side investments allocated to CSR programmes used to be at the minimalistic. But times have changed and whilst corporate philanthropy maybe on the wane (or is it making a comeback due to the clamour for “transparency’?) There are, undoubtedly, strong advantages in aligning an organisations’

BY JOY ABDULLAH

profitability objective with community development. The question, that arises is, would such community development objectives become a primary driver in developing the business strategy for an organisation?

The example that comes to mind is that of Body Shop. A clearly defined set of values aimed

Most companies undertake CSR (corporate social responsibility) programmes as

having to fulfil a corporate duty i.e. giving back to society. Often development of such a program is the

onus of the corporate marketing team and is tied back to ensuring the brand is seen in good light.

Islamic BankerASIA

Islamic BankerASIA

Islamic BankerASIA

Islamic BankerASIA

Islamic BankerASIA

Islamic BankerASIA

Islamic BankerASIA

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Issue 08 2014 / Islamic Banker ASIA / 5150 / Islamic Banker ASIA / Issue 08 2014

you add the ever increasing numbers of the community of South East Asia and the growing youth segment, with increasing demand for lifestyle products , it is definitely amazing to see as to why such brand offerings (to this market segment) has not yet materialise. (There are some, but by and large their presence is, primarily, well known only in their specific geographical markets only.)

This present the situation with a critical question - Is it an issue of approaching this segment based on the classical, “Stakeholders’ profit maximisation”, business formulae or is it lack of understanding of the differing needs of this segment? Whichever be the case, approaching this segment strategically, based on a community development objective can provide a very strong platform for having a sustainable business strategy. A business strategy that would be competitive, sustainable and with very clear benefits all round thus ensuring long term engagement (amongst all stakeholders).

at improving the community, both economically and in terms of quality of life, has given this brand a loyal customer base globally. A consumer group that relates to the corporate cause and commitment of the brand and is willing to aid that mission through their support (of the brand) in terms of preference, recommendation and product usage. So, what can be learned by businesses that want to operate in the global Muslim segment? Today, aside from Islamic Finance and Halal (food) sectors brands, the need for other mainstream brands catering to this global consumer segment is significantly enormous. There seems to be light at the end of the tunnel as we are slowly seeing the evolving industries such as travel and tourism, healthcare and pharmaceuticals and fashion products coming about.

The population numbers and purchasing power of the Muslim community justify an important business case in having brand offerings for this vast segment. Coupled with that when

CHANGING PERSPECTIVE

ENGAGING PERCEPTION THROUGH CUSTOMER-CENTRIC CORPORATE SOCIAL RESPONSIBILITY INITIATIVES

Issue 08 2014 / Islamic Banker ASIA / 5152 / Islamic Banker ASIA / Issue 08 2014

Developing a commercial enterprise whose objective is to uplift a section of the Muslim community economically would resonate very strongly with the global Muslim community.

In essence, it would provide a cause for the Muslim consumer to „contribute’ his/her part (for the community) as well as enable them to relate to the brand and thus to have strong engagement and involvement.

Coupled with the business benefits come the consumer or customer benefits. In today’s challenging economic scenario and social media connected world, we are witnessing more and more businesses nowadays beginning to be aware of the enormous power of “connected consumers”. The growth and high usage of various social media platforms (professional and personal) have given rise to, interest based, on-line communities. Communities that hold

a strong, recommendation or influencer’ power over its members. Trust in the recommendations of a fellow group member goes a long, long way than the advertising and traditional marketing communications of a brand. The global Muslim segment is huge. But when the income and purchasing power filter is used, the concentration comes into perspective across certain markets. But the beauty of it is that these “able-to-afford” the price groups are talking amongst themselves exchanging views on various brands, recommending, spreading through word-of mouth or through cyberspace which either heighten the reputation of the brand or killing it. Have brands, targeted to the Muslim consumer segment, used a CSR approach to grow themselves? Or is it foolhardy to do so, as the returns would not be visible within a day but possibly in Day 10. The catch lies in identifying the CSR platform that would allow to clearly portray benefits both to the consumer and to the society (as a whole) and not just appear as a “lip-service”.

A McKinsey article entitled “Making the most of Corporate Social Responsibility” highlights how companies are now seeing CSR as an opportunity to strengthen their business. So, in developing a CSR based strategic direction its critical to ensure that the social programme is perceived to be both visible and beneficial.

In conclusion, a brand that truly does develop and implement this, in the long run will, undoubtedly reap the benefits of committed engagement. In turn this would bring about a strong, trusted relationship between the brand and its customers. IBA

We are witnessing more and more businesses nowadays beginning to be aware of the enormous power of “connected consumers”.