Case Study 3

1. Discuss the four components of corporate social responsibility and how they relate to a charitable campaign such as (Product) RED. How does participation in a cause-marketing event contribute to a company's social responsibility? What role does sustainability play?

The four components of corporate social responsibility are Economic responsibilities by being profitable to the company, Legal responsibilities by obeying the law or playing by the rule, Ethical responsibilities by being ethical in carrying business and Philanthropic responsibilities by being a good corporate citizen and also by improving the quality and standard of living of the community and society. Economic performance is important as the foundation of the other three responsibilities, because if it does not achieve good performance, the other three responsibilities will be questionable.

This company shows their participation in a cause-marketing event as the core values for this campaign and that not only the companies but the consumers can contribute to the cause to fight HIV/AIDS. Bono and Bobby Shriver, came up with a product that showed that companies could still make money and contribute to a great cause.

Sustainability play is latest theory for social responsibility. It is the idea which suggests that business organizations which are more socially responsible will eventually outperform their peers, rivals or competitors by focusing on the world’s social problem and seeing them as the business opportunities to generate more profit and at the same time, help build the world into a better place to live in.

2. Do you think a partnership with Product (RED) can improve Gap’s image? Is it a sign that they are making a commitment to corporate social responsibility or do you agree with critics who say their involvement is an attempt to spit-shine the company’s image