How can beauty and personal care companies be authentically recognized for its CSR? Study investigates

24 Jun 2022 --- A study by Thailand-based researchers at Mahidol University found that for effective corporate social responsibility (CSR) communication, beauty and personal care companies should communicate by enhancing clear and committed information with personal relevance, transparency, consistency and communicate with precise facts rather than emphasizing a promotional tone.

Additionally, the study finds that CSR communication can have positive and negative reactions among the younger consumers from generations Y and Z of the beauty and personal care companies. This is because ineffective CSR communication increases the degree of skepticism toward the company’s claims.

CSR is understood as part of a company’s obligation to the welfare of society as expected by society. The prominent challenge companies face is how to engage in CSR without sounding as if it were bragging, underscore the researchers.

The study aimed to investigate CSR communication and CSR-Company Ability (CA) beliefs that impact CSR skepticism, brand authenticity and word-of-mouth intention from younger generations based on claims made by beauty and personal care product companies.

CSR is commonly used within strategic marketing as cause-related marketing – integrating social cause with a marketing campaign for a product or brand, explain the researchers. 

What works and what does not
Effective CSR communication builds customer loyalty, retention and encourages positive word-of-mouth. In contrast, ineffective CSR communication can lead to customer boycotting and negative word-of-mouth. Ineffective CSR communication increases the degree of CSR skepticism toward the company’s claims.

Brand authenticity can be weakened if a belief is generated that engaging in CSR will lessen a company’s resources and ability to maintain or improve products and innovation. 

The study finds that a lack of consumer belief in CSR and company abilities (CA) has a more significant impact than ineffective CSR communication. For example, if consumers in the sector observe a company paying less attention to innovation or product quality compared to its competitors, then they are likely to be skeptical when the company starts to make CSR claims. 

Furthermore, consumers who see CSR as a tradeoff to all the other attributes of the product are less likely to believe the authenticity, say the researchers. 

On the other hand, effective CSR communication can enhance brand authenticity if the content of the CSR communication is valid. And so, it will effectively support the position and value of a company – thereby achieving authenticity, say the researchers. 

Most study respondents were females at 63.2% and Gen Zers at 88.4%. Participants were asked to choose a beauty and personal care company that they recalled engaged in CSR activities. Most of them remembered information from L’Oreal Thailand (20.8%), Amway Thailand (20.0%), Smooth E (18.0%) and Unilever Thai (13.6%).

The case of COVID-19
A positive impact of COVID-19 on products such as soap, mouthwash and hand care was noted, with a negative effect on the growth rate of makeup products such as lipstick and nail products, highlight the researchers. 

They suggest that companies attempted to use CSR communication to maintain their existence and financial levels due to the negative impacts on makeup. For example, L’Oreal’s CSR communication campaign during the pandemic was called “Create the Beauty that Moves the World.” 

The study highlights that during the pandemic, Unilever Thailand also promoted the “Every U Does Good” campaign to emphasize environmentally sustainable living.

The researchers intend the study’s results to be beneficial in developing effective CSR communication for beauty and personal care products and be used to create strategic guidelines to strengthen the policies within the sector in the future. 

Edited by Venya Patel