4. Analysis of the Semi-Structured Interviews
4.2 Strategies for Overcoming the Challenges
The interviewees’ accounts about the six companies’ CSR communication strategies indicate that their strategies can be categorised into four different types of overall strategies, but it should be noted that some of the companies have adopted more than one of these CSR communication strategies. Table 1 shows an overview of the four strategies, characteristics of the companies using them and the main communication tactics of each strategy, including communication channels, target audiences, the main purpose, persuasion tactics, and the main type of content communicated. In the following, some of the communication tactics used in the four overall strategies to overcome the main challenges of CSR communication in B2B companies will be analysed in further detail. These tactics are used in order to convince stakeholders of the credibility of their CSR communication and the authenticity of their CSR commitment. These communication tactics do, therefore, not necessarily ensure that the communication strategy will be an efficient brand differentiation strategy. Therefore, the extent to which these strategies are effective brand differentiation strategies will be evaluated in the discussion.
P a g e 54 | 133 Table 1: Overview of CSR communication strategies
CSR
Communication Strategies
Compliance Strategy
Employer
Branding Voice of Industry Strategic Philanthropy Industries
IT consulting industrial transportation
IT consulting biotechnology
industrial engineering
biotechnology pharmaceuticals
Type of Company service service
manufacturing manufacturing Manufacturing
Ownership listed foundation owned
privately owned Listed foundation owned CSR Initiatives
donations environmental impact reduction
philanthropy using employee competencies
environmental impact reduction
ethical product
industry development Profitability of the
obvious CSR fit not profitable sometimes
profitable Profitable Profitable
Purpose compliance motivation Sales sales, relationships
Type of CSR defensive strategic
strategic
transformative Strategic Transformative
Target Audience external employees Customers Customers
Communication Channels emphasised
owned and controlled media some social media
internal channels offline meetings some social media
CSR-website industry press offline meetings
offline meetings owned magazines
Level of ambition Low low and high High High
Persuasion logos pathos, ethos logos, pathos logos, pathos
CSR content priorities
objectivity transparency
factual info
storytelling social goals impact for people
partnerships purpose
value for customer factual info avoid saying CSR
leadership
Impact progress the challenge
partnerships storytelling Brand Personality Not branding performance performance Performance Table 1: This table shows an overview of the four main strategies through which the six B2B companies of the semi-structured interview communicate CSR, including their main strategic choices, i.e. the channels they prioritise, the purpose of the strategies, the primary target audiences and the type of content prioritised.
4.2.1 Indirect CSR Communication
The findings from the interviews suggest that one of the strategies used to overcome the lack of demand for CSR by B2B customers, is an indirect CSR communication strategy, where B2B companies avoid referring directly to CSR or sustainability, but instead focus on communicating the value CSR initiatives create for customers. The interviewee from the industrial engineering company, for instance, states that ‘the goal of my job, it is to stop saying CSR and instead talk about the way we do things’ and that ‘given that we can go in and talk about the productivity agenda, then we can suddenly make it relevant for the customer’
P a g e 55 | 133 (industrial engineering, appendix B). Content of CSR communication must, therefore, focus on how the initiatives improve the business and not on their societal benefits. Similarly, the interviewee from the biotechnology company emphasises that they need to be very specific when communicating about sustainability, because customers are tired of hearing about sustainability:
‘I mean, you are so tired of the word sustainability these days, you know. So we need to be as specific as possible [..] There is also such a thing as greenwashing, you know, so before you manage to look around, everyone has CSR, everyone is there, you know, for their employees, everyone has a triple bottom line [..] or many have at least learnt how to say it right’ (biotechnology, appendix E).
Consequently, B2B companies need to avoid making CSR communication sound like CSR, in order to avoid that CSR messages are perceived as greenwashing. They need to communicate how they are helping the customer, as the interviewee explains: ‘what we try to focus on and what our strategy is in relation to our purpose, is about ‘how can we create impact for our customers and our partners?’ And this means looking at their goals, their visions and what they must achieve’ (biotechnology, appendix E). Arguably all
communication must focus on customer needs and wants, but what is particularly interesting is that it might be necessary for B2B companies to completely avoid referring to the initiatives as CSR. This perspective is consistent with findings in the literature review, which suggested that B2B companies communicate their CSR initiatives modestly (Morsing, Schultz, & Nielsen, 2008; Nielsen & Thomsen, 2009) Even when communicating CSR internally as an employer branding strategy, an interviewee emphasises that the number of readers on their intranet clearly shows that ‘there is no doubt that what’s in it for me still means a lot’ (IT Consultancy, appendix D). Appealing to customers’ needs is arguably an emotional argument that according to the findings of Du & Vieira (2012) will be processed emotionally, which reduced risk of counterarguments.
Regardless of who the CSR communication strategy is targeting, the strategy needs to clearly communicate what’s in it for the target audience, i.e. why should they be interested in the message, instead of focusing on the societal good of the initiatives. Consequently, B2B companies with customers in a wide range of industries will find it difficult to develop a CSR communication strategy that targets customers, because the diversity of their customers means that they cannot be easily segmented, without running the risk of not being able to focus on particular customer needs and wants.
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4.2.2 Strategies to Achieve Credibility
In order to address the stakeholder requirement that CSR initiatives are good for business, the findings from the interviews suggest that B2B companies can boost the credibility of their CSR communication by appealing to logos, i.e. by referring to reason, facts and results. Researchers also found that using a modest and factual approach to CSR communication is more likely to improve the credibility of the information (Legeti & Oravecz, 2009; Nielsen, 2008; Morsing, Schultz & Nielsen, 2008).
Presenting objective and transparent information is, for instance, the strategy of the industrial transportation company and one of the IT consultancies, for which the main purpose of their CSR
communication strategies is to demonstrate compliance with CSR standards and legislation, i.e. a defensive approach to CSR (Visser, 2014): As an interviewee explains: ‘We try to be relatively open and tell that we do like this and then it is up to others to judge if it is good or not good. We are very aware that there is a risk of falling into the ditch and appearing a bit too smug. [..] We really try to be meticulous by reporting it very factually, where we do not include very many feelings’ (industrial transportation, appendix F). Thus, providing objective and transparent information about a company’s CSR initiatives can reduce the risk of misinterpretations, such as bragging and greenwashing. A modest approach to CSR communication that focuses on CSR reporting and compliance, can come across as a credible strategy, because, as one of the interviewees points out: ‘I actually prefer that you contribute quietly. I think this has more validity’ (ibid.).
B2B companies that use CSR communication for other purposes than compliance, can also benefit from communicating factual information that demonstrates the progress and goals of CSR initiatives. As an interviewee explains, ‘With customers you should preferably show some numbers or proof points, but this is of course still an emotional argument [..] so what we like to do is to use what we call proof points: What does it mean if we do this? We have achieved this and this which equals’ (biotechnology, appendix E).
Thereby, they try to explain or predict their impact in numbers. Additionally, social goals are also referred to as proof of CSR commitments. An interviewee, for instance, states that ‘the goals are actually inspired by the ability to help the UN achieve, or at least contribute to, their[..] long term sustainability goals’ (ibid.).
The interviewee also refers to the triple bottom line as a strategic way for the company to invest in CSR initiatives by stating that when they ‘think social responsibility, CSR, corporate social responsibility, then we often look at the triple bottom line, and this means that you have an investment in society and you have an
P a g e 57 | 133 investment in the people, who work for you, and you definitely have an investment in the customer, a responsibility to your customer’ (biotechnology, appendix E). Similar to the findings of the literature review, this suggests that B2B companies need to adopt Visser’s (2014) strategic or transformative form of CSR, where CSR initiatives are integrated into the overall business strategies and operations with goals and measurable results. However, it also confirms the finding that B2B companies should communicate Lattemann et al.’s (2009) business discourse of profit maximisation, because if CSR is understood as an investment, it can be defined as ‘An act of devoting time, effort, or energy to a particular undertaking with the expectation of a worthwhile result‘ (Oxford Dictionaries, n.d. d.). Therefore, companies must be able to communicate and show proof of the results and progress of CSR investments. As an interviewee explains, their CSR ‘communication strategy is to educate people about all of the challenges and also show how [our company] and our partners are addressing these challenges and then showing progress along the way’
(pharmaceuticals, appendix G).
Thus, B2B companies might have to communicate CSR factually if they are targeting customers and investors, because they need to be able to communicate proof of their impact and progress. However, it is important to emphasise that even though CSR is communicated through facts and proof points, it can still be communicated by appealing to pathos, as the facts and proof points can express an emotion. As one of the interviewees points out ‘if you look at CSR communication in general, then there is a lot of pathos in it and in a lot of communication, full-stop, but this is an area where is it expected’ (biotechnology, appendix E). Furthermore, it is important to note that the factual communication of CSR also stems from legal obligations to document CSR initiatives, but what is interesting is that B2B companies that do not only communicate CSR for compliance reasons also appeal to logos, but with an emotional message behind it, e.g. by implementing social goals, following the triple bottom line and communicating proof points about their expected impact to customers. Most literature pointed to a more factual approach towards CSR, but Du & Vieira (2012) did find that using an emotional approach could reduce the arguments against CSR.
These are communication tactics that also communicate a certain vision and set of corporate values.
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4.2.3 CSR Fit
Despite the difficulties of B2B service companies to develop economically sustainable CSR initiatives that are related to their core business, the interview findings confirm the findings from previous researchers regarding the significance of CSR fit (Du, Bhattacharya & Sen, 2010; O’Connor & Shumate, 2010; Elving, 2012). CSR initiatives must be associated with the core business in order to generate an effective CSR communication strategy. One of the interviewee describes this in his understanding of CSR:
‘What my take on it is that it is a conversation we have with society. Primarily with our stakeholders. It can be a very negotiated conversation. [..]In some areas we have influence in the discussion. Take the example of urban health and the connection between urban living and [a particular disease]. Of course there are many people, who see this as a very important challenge and something we in society have to take
responsibility to address, but we also know a lot about the challenges and a lot of the drivers, so we are able to actually be a co-contributor to that conversation’ (pharmaceuticals, appendix G).
Thus, companies need to identify societal conversations about challenges that they can address with the competencies and knowledge of their core business. Thereby, CSR fit can boost the credibility of CSR messages, because their core business operations can provide suggestions on how the CSR issue is solved.
For certain industries the CSR fit will seem obvious or even compulsory. Companies in pharmaceutical industries are expected to address issues related to fighting certain diseases and increasing access to medicine. Similarly, if a company in an industrial engineering industry that ‘accounts for 5-6% of all CO2 emissions in the world’ (industrial engineering, appendix B) does not choose to focus their CSR efforts on the environment, the message will not be well received by sceptical B2B customers, because it can give the impression that the company is not acknowledging responsibility for its negative environmental footprint.
CSR fit is also the reason why both the IT consultancies are engaged in at least one project that addresses issues related to IT. These, for example, include raising interest about IT and coding in schools, teaching the elder generations how to use IT systems and becoming mentors for Syrian refugees with an IT background.
As one of the interviewees from an IT consultancy says ‘what we do here is always to keep in mind if it fit into our business’ (IT Consultancy, appendix C). Therefore, they do not ‘walk out and build a playground, for example’, but ‘if someone came to ask if we wanted to help establish IT in a refugee camp, then that could be something where, you can say, it fits in, because we are using our competencies’ (IT Consultancy,
P a g e 59 | 133 appendix C). So it is important the CSR fit can be communicated by emphasising how the companies uses the competencies of their employees and their knowledge to address an issue. This perspective is
consistent with the other interviewee from an IT consultancy, who also emphasises the importance of using their competencies in CSR projects: ‘We try to use our competencies to make a difference and we always do this on the basis of what we are good at and then we try to consider it in relation to how we as a company can gain some knowledge or use our competencies in a new way or create. Help solve some societal challenges’ (IT Consultancy, appendix D). Importantly, this comment by the interviewee shows that ideally the CSR projects the company engages in will also provide them with relevant knowledge, even if their involvement in the project is not economically sustainable.
Thus, in order to overcome challenges regarding their stakeholder’s perceptions of the credibility of their CSR commitment, B2B companies need to ensure to communicate about a CSR challenge for which there is a strong CSR fit, as well as communicate how they are able to use their knowledge and competencies to address a particular challenge. This will make stakeholders less sceptical of the company’s CSR-related messages. As the interviewee from the biotechnology company emphasises ‘The strongest CSR is preferably something, I think that is connected with the product, I mean, with the solution you bring, the contribution you bring to you customers´ (biotechnology, appendix E).
4.2.4 Strategic CSR Partnerships
The interview findings suggest that the legitimacy and credibility of the CSR communication of B2B
companies is enhanced by strategic CSR partnerships, because CSR stories will, thus, not only stem from the company itself, but also from third parties. Thus, companies benefit from the ethos, i.e. the reputation and credibility of an external person. Similar findings were identified in the current literature, which stated that partners can be used to endorse your CSR communication strategy (Morsing, Schultz & Nielsen, 2008; Du &
Vieira, 2012). One the interviewees emphasises this point by stating that: ‘So the problem is, I think, that, you need to stop thinking about CSR as a communication exercise, as a starting point. It is of course important that you also communicate what you do in general, but, I think, the value lies in the business-to-business relations, [..] it is the partnerships that are interesting. How can we help each other [..] So again, this is about storytelling’ (IT Consultancy, appendix D). Thus, by establishing strategic CSR partnerships, the
P a g e 60 | 133 CSR communication of B2B companies will come across as credible because the CSR messages and stories come from the partners or are about partners. Additionally, this might reduce the risk that CSR messages are misinterpreted as selfish and bragging. The interviewee emphasises that it is the partnerships that
‘gives you the voice and the legitimacy to tell the story. Else we can sometimes... I mean, generally there is a natural scepticism towards commercial companies, who want to talk about how fantastic they are’ (ibid.).
Through partnerships B2B companies can ‘create a shared relationship and a shared story and be better at using each other’s resources’ (IT Consultancy, appendix D). This is the basis on which CSR communication strategies in B2B companies should be developed. Thus, partnerships will facilitate the communication of the story behind CSR initiatives, without making them sound self-centred. As an interviewee explains,
‘when we enter industries, then we can develop it, we can move something with the customer. I mean, this is not an illusion of grandeur, because you must do it together’ (biotechnology, appendix E). In other words, CSR partnerships not only have the potential to generate a significant impact, but this impact also enhances the effectiveness of CSR communication, as initiatives that are not significantly impactful are not likely to impress or be relevant to communicate. Therefore, an element of this company’s CSR communication strategy is the formulation of a goal relating to the number of socially impactful partnerships they can establish: ‘[the goal] is about entering partnerships that can make an enormous difference globally. So in that sense, you can say that, there is something deeply CSR-related just in the way we measure ourselves’
(ibid.). Additionally, CSR partnerships are useful for B2B companies because they ensure that the CSR communication is backed up by very specific actions.
Moreover, referring to stories about CSR partnerships also appeals to pathos, by emphasising the potential impact they can achieve together, i.e. emphasis on the ‘we’ rather than the ‘I’. Using partners also enables the company the benefit from the ethos, i.e. the reputation of the other company. Lastly, partnerships can facilitate CSR communication for companies that find it difficult to segment their target audiences, as they can easily select the most relevant cases, i.e. partnerships, to use for storytelling in customer meetings.
Thus, B2B companies can communicate a message indirectly through the type of partnership they choose to establish and which industries they choose to partner with.
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