Introduction

Inevitably, we are in a highly progressive era in human evolution, and this means that more people are interested in such ideals as Corporate Social Responsibility (CSR). If your next question is “What is corporate social responsibility?”, here’s an answer you can remember:

Corporate social responsibility refers to a brand’scommitment to operating ethically and sustainably. This is expressed in understanding the social, economic, and environmental impacts of its business practices and contributing value to society beyond products and services.

How is this practicable? Companies find an avenue to “give back” to society – a notion that almost instantly brings philanthropy to mind.

• Philanthropy is a dimension of corporate social responsibility. A company can demonstrate corporate social responsibility by setting up/affiliating with charities and non-profits, or by setting up donation percentages per purchase of any product. You have likely seen an ad to “buy X and Y-percent of your payment goes directly to a certain charity or cause.”
• Ethical responsibility is another type of corporate social responsibility that encompasses inclusivity, fair and equal treatment of all employees, investors, stakeholders, and customers. This can be expressed in a company’s non-tolerance for unpaid labor, child labor, workplace discrimination, or unfair wages.
• Environmental responsibility is a popular third dimension of corporate social responsibility in a world challenged by environmental degradation. A company can display environmental responsibility by contributing to the reduction of pollution, gas emissions, carbon footprints, and general waste.
• Economic responsibility combines philanthropic, ethical, and environmental responsibilities for the good of the economy. This makes it the ultimate type of corporate social responsibility.

Being socially responsible fosters a culture of accountability that puts the practicing company in a positive light – making it inextricably linked to Public Relations (PR).

Corporate social responsibility was named as a top PR trend to look out for in 2023 and for a good reason.

With the global-scale awareness going on about climate change, for example, it makes sense that people are more supportive of a brand that shows commitment to its reduction than a passive brand. Similarly, it is more conceivable that people who value charity invest in a brand that guarantees that a portion of their every purchase is donated to a needful cause.

It is noteworthy that by and large, corporate social responsibility is not a brand-new idea. However, its effectiveness in drawing the attention of the right, like-minded people (employees and customers) to a brand, has significantly increased. In other words, “doing good in the hood” consequently projects a positive image of the company to the public, customer trust thrives, and business booms.

This explains the popularization of practicing CSR among businesses, big and small.

Does this make corporate social responsibility inherently performative? This remains subject to opinions and perspectives.

What is, however, a fact is that corporate social responsibility as a PR strategy is a tightrope. This means that it can go really wrong, really fast, and do the opposite of good for business.

This blog curates the stories of some well-known brands that got CSR dramatically wrong. Keep reading!

Corporate Social Responsibility (CSR) Gone Wrong: Case Studies of Brands

BP and the Oil Spill Saga

In the early 2000s, British Petroleum, more commonly known as BP, launched a momentous rebranding initiative in an attempt to position itself as a more environmentally-conscious and progressive company within the oil and gas industry. It was a bold step toward challenging the perception of oil companies.

BP’s rebranding notably featured a new slogan “Beyond Petroleum” and a new logo - a green and yellow sunflower-like image called the “Helios” (named after the Greek sun god), symbolizing “energy” in its various forms.

This was to represent BP's new commitment to exploring and investing in renewable energy sources. The brand planned to diversify its portfolio by developing alternatives to traditional oil and gas operations, such as solar, wind, and biofuels.

The positively disruptive “Beyond Petroleum” campaign was initially lauded and won some advertising and branding awards, including the prestigious Gold Effie Award from the American Marketing Association in 2007.

Despite the glowing impression that BP made on many an observer, a few critics accused the brand of “greenwashing,” a term used to describe the superficial portrayal of a company as environmentally friendly. To these critics, the BP rebrand was not to be taken at face value – and eventually, the Deepwater Horizon oil spill of 2010 proved them right.

The date was April 20, in the Gulf of Mexico – when a ghastly explosion erupted Deepwater Horizon oil rig, leased by British Petroleum (BP). The explosion resulted in the deaths of 11 workers and the sinking of the rig, but it didn’t end there. Oil from the submerged rig leaked unchecked from the sea floor for a total of 87 days, causing a large-scale environmental crisis.

An estimated 4.9 million barrels (around 210 million gallons) of oil spilled into the Gulf over this period. The spill spread across an estimated area of 68,000 square miles, severely affecting marine and coastal ecosystems. It killed thousands of marine animals, polluted hundreds of miles of coastline, damaged fisheries and the tourism industry, and disrupted the livelihoods of people living in the region.

The disaster severely undermined BP’s previous efforts at promoting an environmentally friendly brand image and amid the heavy criticisms, an array of lawsuits lined up against BP. The company pled guilty to 11 counts of misconduct or neglect of ship officers, one count of obstruction of Congress, and two misdemeanors under the Clean Water and Migratory Bird Treaty Acts. In 2015, BP agreed to pay $18.7 billion in fines, the largest corporate settlement in U.S. history at the time.

The financial and legal repercussions aside, BP’s reputation took a fatal hit for a CSR initiative mired by an ironic scandal. The rebranding that was once aware became endlessly criticized as a façade.

How about a more recent story?

Coca-Cola’s “Innocent Drinks” Story

In 2022, a renowned Coca-Cola subsidiary, Innocent Drinks, found itself in the wrong CSR spotlight.

The Advertising Standards Authority (ASA) in the UK declared Innocent's ad campaign as misleading, a verdict instigated by a complaint lodged by an anti-plastic activist group called Plastics Rebellion.

This saga originated in May 2021 when Innocent Drinks launched a vibrant ad campaign. Employing a compelling animation, the campaign inferred that buying an Innocent smoothie was playing a part in “healing the planet,” and insinuated that these beverages could practically “save lives.”

However, anti-plastic environmentalists found the campaign implausible. In the ruling that ensued, the ASA pointed out that, despite Innocent's campaign showcasing positive messaging about recycling and natural food choices, it may lead consumers to false conclusions. They elaborated that the ad hinted at buying Innocent products as a direct path to environmental conservation, a claim that lacked sufficient evidence.

Given that the ad had been running for eight months, the spokesperson for Plastics Rebellion proposed a systemic solution - instating incentives industry-wide to promote ethical and transparent advertising practices.

In the end, the ads were taken down and the CSR campaign was overhauled. The misrepresentation of the brand’s commitment to environmental and ethical responsibility resulted in an unexpected shutdown.

The Takeaway

A most outstanding aspect of each of these stories is that the practice of corporate social responsibility (CSR) has its enforcers, and your target audience is part of them.

While CSR can be a great way to generate buzz around a brand, it can dent the image of a business if and when it backfires. It also translates to investments gone down the drain.

Importantly, the case studies you have read are of multinational brands with the resources and threshold to recover from occasional hits and misses, however, a medium/small-scale business may not survive a negative CSR boomerang.

Is there anything wrong with using CSR as a public relations strategy? Not at all, if it is well applied. The key to a successful application of corporate social responsibility as a PR strategy is consistency.

With consistency, a brand’s corporate social responsibility is believable and ultimately accepted as genuine.