CSR Image Builder Organizations
Ismael Bena - MBA, SIG Leader
Interesting observation, given the objective of the company each of the three categories can be pursued.
In principle, Customer Relationship Management (CRM) has the ability to increase revenue, enhance image and create employee buy-in.
Although, the "image builder organizations" may not always see the return expected, as this strategy is often aimed to attract consumers who want to make a difference through their purchase. Collins (1993) argued, “… it [CRM] can generate the long-term value needed for a company to survive and achieve competitive advantage”.
Skepticism on this strategy is that consumers are getting more concerned and conduct research on companies and their social intentions. If CSR is reputation driven, consumers might shy away, knowing that favorable reputation enables firms to charge premium prices and advance their corporate position more than their social cause, as “Well-reputed firms have a competitive advantage within there industries” (Fombrun and Shanley 1990).