Case Analysis
Haina Xu
Xxx class
10/24/2015
As a subsidiary of Danone, which is one of the largest health-oriented companies in the world, Dannon Company is facing a critical business problem within the company: whether to communicate or not to communicate its Corporate Sustainability Responsibility (CSR) practices to its consumers.
Although Dannon has maintained a strong commitment to its CSR practices, they have been more internally focused, thus were kept within the office doors. It is still under the debate within the company that whether the strong CSR communications should be made to the customers, and what impacts it will make on the company and its brands.
In order to evaluate the business problem, both sides of the coin need to be looked at before the conclusion can be made.
It is reasonable to argue that CSR marketing efforts will promote the company image and grow customer loyalty, as it aligns with the mission of the Dannon company: to bring health through food to as many people as possible. Nonetheless, as a for-profit company, Dannon will need to look at the economical impact of its CSR related decisions.
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The reason why we haven’t committed is because we haven’t identified how we’re going to measure the impact of the corporate program.” The biggest challenge is that the return on investment (ROI) will prove difficult to measure as the CRS marketing will generate intangible assets instead of tangible. Further, it is difficult to identify the growth in sales, if any, as the growth will take place in a slow manner. It is also a concern to Arosio that Dannon’s competitors might take advantage of its CSR campaign as consumers can be confused about which company was