The Marketing Essentials: Crisis Response & CSR
We’re back at it again, revisiting a company I’ve written about twice before in previous blogs — home décor company Lulu and Georgia. In the first blog, I delved into its website design and UX and described its effectiveness and what we can learn from it. In the second blog, I analyzed its use of Instagram and social commerce. In this blog, I will explore the company’s response (or lack thereof) to the crisis in Ukraine and the importance of corporate social responsibility.
Lulu and Georgia: Their Stance
Let’s first look at Lulu and Georgia. Delving into its Instagram, TikTok, Facebook, and Pinterest accounts and e-commerce website, the brand took no action to acknowledge the crisis or support those affected by it. No posts, captions, or links have been posted by the brand regarding the crisis.
Regarding any involvement in Ukraine and Russia, Lulu and Georgia only ships within the continental United States and has no manufacturing connections with either country because they procure their items from the United States and import pieces from India, Turkey, and China. As such, the company is not faced with business implications from the crisis.
A Dive into Brands’ Responses to the Crisis
The public wants brands to take tangible action regarding Russia’s invasion of Ukraine. This shared belief reflects consumers’ growing awareness of companies' influence over major global events due to our globalized economy. However, despite these expectations, marketers should not rush to make grandiose statements or big decisions around a fast-moving and highly sensitive situation. Many companies may have already learned that lesson in the past two years marked by society-wide crises.
For organizations that want to take action, the best way to do so while not involving oneself in high-stake situations is to get involved in humanitarian aid. Mastercard and Visa have promised $2m in humanitarian relief to Ukraine. KFC and McDonald’s are donating food via their stores to citizens and the military. GSK has donated medical supplies. Beyond this, some organizations like McDonald’s, H&M, Nike, Unilever, American Express, and many more have pulled their business entirely from Russia. However, by McDonald’s pulling out of Russia, thousands of Russians have lost their jobs, and the country lost a hopeful symbol of the free Western world.
While it is noble that companies are taking action, it pains me that it is always the innocent civilians of countries — not the politicians who started the mess — that are impacted and economically, physically, and mentally harmed.
Corporate Social Responsibility, no matter how small
This is not to say that companies should not take any action whatsoever — of course they should. But it depends on the organization, its values, its industry, and the broader implications of society to determine the extent and depth that that action should be. In the twenty-first century, companies must follow corporate responsibility.
Corporate social responsibility (CSR) is the act of fusing environmental and social concerns with a company’s planning and operations. CSR programs are based on the idea that businesses can reduce their adverse social and environmental impacts on the world.
The crisis in Ukraine is the most relevant, current area in which brands are practicing CSR. Even though Lulu and Georgia has no shipping or manufacturing ties to Ukraine or Russia, the company should take part in some CSR action, even if that is merely posting content with links to donate for food and aid.
While every company cannot be expected to have a blatant stance on an issue, it is still important to show support for those affected by it. Many brands (mentioned above) have participated in humanitarian relief efforts for Ukrainians. Lulu and Georgia have not participated in such efforts nor used its platforms to guide followers to websites where they can. Whether by holding your own fundraising program or just providing links to charities, participating in humanitarian relief is the least a company can and should do.
