Explain the service marketing process

 A service is the action of doing something for someone or something. It is largely intangible (i.e. not material). You cannot touch it. You cannot see it. You cannot taste it. You cannot hear it. You cannot feel it. So a service context creates its own series of challenges for the marketing manager since he or she must communicate the benefits of a service by drawing parallels with imagery and ideas that are more tangible.

Search quality is the perception in the mind of the consumer of the quality of the product prior to purchase through making a series of searches. So this is simple in relation to a tangible product because you might look at size or colour for example. Therefore search quality relates more to products
and services.

Experience quality is easier to assess. In terms of service you need to taste the food or experience the service level. Therefore your experiences allow you to evaluate the level and nature of the service. You remember a great vacation because of the food or service, but by the same token you remember an awful vacation because of the hopeless food or poor service.

Credence quality is based upon the credibility of the service that you undertake. This is down to the reputation of a dentist or of a decorator. Credence is used where you have little knowledge of the topic and where you rely upon the professionalism of the expert.

Perishable

Perishable – in that once it has occurred it cannot be repeated in exactly the same way. For example, once a 100 meters Olympic final has been run, there will not be another for 4 more years, and even then it will be staged in a different place with many different finalists. You cannot put service in the warehouse, or store in your inventory. An interesting argument about perishability goes like this, once a flight has taken off you cannot sell that seat again, hence the airline makes no profit on that seat. Therefore the airline has no choice but to price at peak when it sells a seat at busy times in order to make a profit. That’s why restaurants offer vouchers to compensate for quieter times, and it is the same for railway tickets and matinees in Broadway during the middle of the week.

Variable

Variability- since the human involvement in service provision means that no two services will be completely identical, they are variable. For example, returning to the same garage time and time again for a service on your car might see different levels of customer satisfaction, or speediness of work. If you watch your favourite/favorite music group on DVD the experience will be the same every time you play it, although if you go to see them on tour when they are live no two performances will be identical for a whole variety of reasons. Even with the greatly standardized McDonalds experience, there are slight changes in service, often through no fault of the business itself. Sometimes Saturday lunchtime will be extremely busy, on other days you may have to wait to go via the drive through. So services tend to vary from one user experience to another.

Homogeneous

Homogeneity is where services are largely the same (the opposite of variability above). We considered McDonald’s above which is a largely homogeneous service, so now let’s look at KFC and Pizza Hut. Both of these businesses provide a homogeneous service experience whether you are in New York, or Alaska, or even Adelaide. Consumers expect the same level of service and would not anticipate any huge deviation in their experience. Outside of the main brands you might expect a less homogeneous experience. If you visit your doctor he or she might give one interpretation, whereas another doctor might offer a different view. Your regular hairdresser will deliver a style whereas a hairdresser in the next town could potentially style your hair differently. Therefore standardization is largely embodied by the large global brands which produce services.

Right of ownership is not taken to the service, since you merely experience it. For example, an engineer may service your air-conditioning, but you do not own the service, the engineer or his equipment. You cannot sell it on once it has been consumed, and do not take ownership of it.

Western economies have seen deterioration in their traditional manufacturing industries, and a growth in their service economies. Therefore the marketing mix has seen extended and adapted to create the services marketing mix, also known as the 7P’s or the extended marketing mix – physical evidence, process and people.

A product is tangible (i.e. material) since you can touch it or own it. A service tends to be an experience that is consumed at the point where it is purchased and cannot be owned since it quickly perishes. A person could go to a café one day and enjoy excellent service, and then return the next day and have a poor experience. Marketers talk about the nature of a service as being inseparable, intangible, perishable, homogenous and variable.

Inseparable

Inseparable – from the point where it is consumed, and from the provider of the service. For example, you cannot take a live theatre performance home to consume it (a DVD of the same performance would be a product, not a service). The consumer is actually involved in the production process that they are buying at the same time as it is being produced, for example an eye test or a makeover. One benefit would be that if you are unhappy with you makeover you can tell the beautician and that instant feedback means that the service quality is improved. You can’t do that with a product. Another attribute is that services have to be close to the person consuming them i.e. goods can be made in a central factory location which has the benefits of mass production. This localization means that consumption is inseparable from production.

Intangible

Intangible – cannot have a real, physical presence as does a product. For example, motor insurance may have a certificate, but the financial service itself cannot be touched i.e. it is intangible. This makes it tricky to evaluate the quality of service prior to consuming it since there are fewer attributes of quality in comparison to a product. One way is to consider quality in terms of search, experience and credence.

Products and Services in Retail Banking and Corporate Banking

 Products and Services – Retail Banking    

Retail banking encompasses a wide variety of products and services, including:

• Checking and savings accounts – customers are generally charged a monthly fee for checking accounts; savings accounts offer slightly higher interest rates than checking accounts but generally cannot have checks written on them.
• Certificates of Deposit and Guaranteed Investment Certificates (in Canada) – these are the most popular investment products with conservative investors, and an important funding source for banks since the funds in these products are available to them for defined periods of time.
• Mortgages on residential and investment properties – because of their size, mortgages account for both a substantial part of retail banking profits, as well as the biggest chunk of a bank’s exposure to its retail client base.
• Automobile financing – banks offer loans for new and used vehicles, as well as refinancing for existing car loans.
• Credit cards – the high interest rates charged on most credit cards makes this a lucrative source of interest income and fees for banks.
• Lines of credit and personal credit products – Home equity lines of credit (HELOC) have diminished significantly in their importance as a profit center for banks after the housing collapse in the U.S. and subsequent tightening of mortgage lending standards.
• Foreign currency and remittance services – the increase in cross-border banking transactions by retail clients, and the higher spreads on currencies paid by them, makes these services a profitable offering for retail banking.

Retail banking clients may also be offered the following services, generally through another division or affiliate of the bank:

• Stock brokerage (discount and full-service)
• Insurance
• Wealth management
• Private banking

The level of personalized retail banking services offered to a client depends on his or her income level and the extent of the individual’s dealings with the bank. While a client of modest means would generally be served by a teller or customer service representative, a high net worth individual who has an extensive relationship with the bank would typically have his or her banking requirements handled by an account manager or private banker.

Although brick-and-mortar branches are still necessary to convey the sense of solidity and stability that is crucial to banking, the reality is that retail banking is perhaps one area of banking that has been most impacted by technology, thanks to the proliferation of ATMs and the popularity of online and telephone banking.

The  Corporate  Banking

The  Corporate  Banking  is  banking  services  for  large  companies.  Usually, the definition of the business of banking for the purposes of corporate banking,

directed at large business entities. Banks often maintain specific divisions for handling  the  needs  of  corporate clients,  separate from  consumer or  retail banking activities for individual accounts. This type of banking is designed to

deal with major financial transactions that do not generally a transaction for retail or consumer or such kind of banking services.

Products and Services – Corporate Banking        
The corporate banking segment of banks typically serves a diverse range of clients, ranging from small to mid-sized local businesses with a few millions in revenues to large conglomerates with billions in sales and offices across the country. Commercial banks offer the following products and services to corporations and other financial institutions:

• Loans and other credit products – this is typically the biggest area of business within corporate banking, and as noted earlier, one of the biggest sources of profit and risk for a bank.
• Treasury and cash management services – used by companies for managing their working capital and currency conversion requirements.
• Equipment lending – commercial banks structure customized loans and leases for a range of equipment used by companies in diverse sectors such as manufacturing, transportation and information technology.
• Commercial real estate – services offered by banks in this area include real asset analysis, portfolio evaluation, debt and equity structuring.
• Trade finance – involves letters of credit, bill collection, and factoring.
• Employer services – services such as payroll and group retirement plans are typically offered by specialized affiliates of a bank.

Importance to the Economy
Retail and commercial banks are of critical importance to the domestic and global economies. Retail banking brings in the customer deposits that largely enable banks to make loans to their retail and business customers. Commercial banks, for their part, make the loans that enable businesses to grow and hire people, contributing to expansion of the economy.

For proof of the importance of banks to the economy, one needs to look no further than the global credit crisis of 2007-08. The crisis had its roots in the U.S. housing bubble and the excessive exposure of banks and financial institutions around the world to derivatives and securities based on U.S. home prices. As iconic American investment banks and institutions either declared bankruptcy (Lehman Brothers) or were on the verge of it (Bear Stearns, AIG, Fannie Mae, Freddie Mac), banks grew increasingly reluctant to lend money, either to their counterparts or to companies. This resulted in a near-total freeze in the global banking and lending mechanism, causing the most severe recession worldwide since the 1930s’ Depression. This near-death experience for the global economy led to renewed regulatory focus on the largest banks that are deemed “too big to fail” because of their importance to the worldwide financial system.

Differentiate between 'Retail and corporate market

 Retail banking refers to the division of a bank that deals directly with retail customers. Also known as consumer banking or personal banking, retail banking is the visible face of banking to the general public, with bank branches located in abundance in most major cities. Banks that focus purely on retail clientele are relatively few, and most retail banking is conducted by separate divisions of banks, large and small. Customer deposits garnered by retail banking represent an extremely important source of funding for most banks.

Corporate banking, also known as business banking, refers to the aspect of banking that deals with corporate customers. The term was originally used in the U.S. to distinguish it from investment banking, after the Glass-Steagall Act of 1933 separated the two activities. While the Act was repealed in the 1990s, corporate banking and investment banking services have been offered for many years under the same umbrella by most banks in the U.S. and elsewhere. Corporate banking is a key profit center for most banks; however, as the biggest originator of customer loans, it is also the source of regular write-downs for loans that have soured.

The Difference between Retail, Corporate, and Investment Banking

 Most of us when dealing with banks usually walk into the branch and get our work done we usually do not bother whether it is retail banking branch or a corporate banking branch. The difference between retail and corporate banking is that retail banking serves individuals and entities that are not corporates whereas corporate banking deals with large corporates who want to bank with that institution. The other end of the spectrum is the investment banking, which deals with high priced and low volumes deals like arranging for mergers and acquisitions, takeovers, and other deals aimed at the top notch of the management in the corporates. Further, it must be mentioned that whereas retail banking is volumes driven, corporate banking is a combination of volumes and size of the transactions, investment banking is purely driven by the size of the deals where volumes are usually low as the lack of it is made up by the fees earned by the investment bankers in individual deals. This means that the commissions on retail and corporate banking range from low to medium whereas for investment banking they range from high to very high.

Describe the role of promotion and publicity in marketing bank services

 Promotion Mix

In the formulation of marketing mix the bank professionals are also supposed to blend the promotion mix in which different components of promotion such as advertising, publicity, sales promotion, word-of-mouth promotion, personal selling and telemarketing are given due weightage. The different components of promotion help bank professionals in promotion the banking business.

Advertising: Like other organizations, the banking organizations also us this component of the promotion mix with the motto of informing, sensing and persuading the customers. While advertising, it is essential that we know about the key decision making areas so that its instrumentality helps bank organization both at micro and macro levels.

Finalizing the Budget: This is related to the formulation of a budget for advertisement. The bank professionals, senior executives and even the police planners are found involved in the process. The formulation of a sound budget is essential to remove the financial constraint in the process. The business of a bank determines the scale of advertisement budget.

Selecting a Suitable vehicle: There are a number of devices to advertise, such as broadcast media, telecast media and the print media. In the face of budgetary provisions, we need to select a suitable vehicle. The latest developments in the print technology have made print media effective. The messages, appeals can be presented in a very effective way.

Making Possible creativity: The advertising professionals bear the responsibility of making the appeals, slogans, messages more creative. The banking organizations should seek the cooperation of leading advertising professionals for that very purpose.

Instrumentality of branch managers: At micro level, a branch manager bears the responsibility of advertising locally in his / her command area so that the messages, appeals reach to the target customers of the command area. Of course we find a budget for advertisement at the apex level but the business of a particular branch is considerably influenced by the local advertisements. If we talk about the cause-related marketing, it is the instrumentality of a branch manager that makes possible the identification of local events, moments and make advertisements condition-oriented.

Public Relations: Almost all the organization need to develop and strengthen the public relations activities to promote their business. We find this component of the promotion mix effective even in the banking organizations. We can’t deny that in the banking services, the effectiveness of public relations is found of high magnitude. It is in this context that we find a bit difference in the designing of the mix of promoting the banking services. Of course in the consumer goods manufacturing industries, we find advertisements occupying a place of outstanding significance but when we talk about the service generating organizations in general and the banking organizations in particular, we find public relations and personal selling bearing high degree of importance. It is not meant that the banking organizations are not required to advertise but it is meant that the bank executives unlike the executives of other consumer goods manufacturing organizations focus on public relations and personal.

Personal Selling: The personal selling is found instrumental in promoting the banking business. It is just a process of communication in which an individual exercise his/her personal potentials, tact, skill and ability to influence the impulse buying of the customers. Since we get in immediate feed back, the personal selling activities energies the process of communication very effectively.

The personal selling in an art of persuasion. It is a highly distinctive form of promoting sale. In personal selling, we find inter-personal or two-way communication that makes the ways for a feed back. There is no doubt in it that the goods or services are found half sold when the outstanding properties are well told. This are of telling and selling is known as personal selling in which an individual based on his/her expertise attempts to transform the prospects into customers.

Dynamics of Personals Selling

The dynamics of personal selling are found instrumental in activating the selling activities. Sales preparations are considered most crucial for the actual sales. Pre-sale activities and post-sale services can’t be left neglected to improve the marketing activities.  The customers may be interested in knowing the main features of the services, how a particular service would help them, rationale behind the technical services and proof in regard to its uses. The pre-sale activities would bring the positive results, if preparations are adequate.

Some of the customers are found highly aware of the developments, they are found well informed. On the other hand, we also find other category of customers who are in dark. Here, the branch managers are expected to match the level of awareness of customers. As for instance, Mr. A goes up the matrix but Mr. B has not enough time for the branch managers. The branch managers are supposed to prepare a synopsis of their sales talk. Not surprisingly the highly aware customers are found in apposition to make independent decisions and know all about. While selling to the less aware customers, the managers should stress on the main features of the services and the expected benefits of these services.

Why location of a bank is so important from different perspectives

 Banking activity is location-specific in the sense that presence in the foreign market is required for information production and signaling and to monitor domestic and local customers, reduce transaction costs and undertake portfolio optimization and asset transformation . For example, the need to monitor customers more closely than can be done from the headquarters provides an incentive to establish a direct overseas presence although these foreign offices will probably still face somewhat of a disadvantage relative to their local competitors in this area; banks with a diversified customer base will be able to reduce transaction costs by pooling customers with offsetting needs ; banks that excel in producing value-added products develop expertise in portfolio and asset transformation; banks that specialize in syndicated loans, foreign exchange, Eurobond issues and derivatives develop signaling related advantages.

The location of banks involves a comparison between exporting to the host country (through correspondent banking) and market servicing from a production unit sited in the host country (an office in the foreign market). Khoury (1979) formalizes this problem and shows that firms export when demand grows at a predictable rate as long as the marginal cost of production and transport are less than the cost of undertaking Banks. The model developed in this paper shows that when demand is volatile banks exercise caution not only by exporting but also by undertaking partial Banks. The initial version of the model is based on the assumption that the bank has a monopoly over an investment opportunity and the product market is perfectly competitive, i.e., the impact on prices and market structure is minimal. This assumption is relaxed in subsequent sections. The bank produces under constant marginal costs but makes decisions prior to the revelation of demand.

 Banking activity is location-specific in the sense that a local presence is required to establish markets. In distant markets, information can be produced and distributed by undertaking FDI. If banks undertake immediate full FDI, it becomes a risky action in the short-run because the results may prove to be too poor if the market turns out to be unfavorable. However, in the long-run this may be useful because full FDI may confer a cost advantage that will not be available to late entrants

What are the different ways that banks can follow to distribute their products directly

 Distribution in banking

A distribution channel is a route to the market for a supplier789. In the case of a bank, the distribution channel is the way the banking product or service takes from the bank to the customer. Most banks have multiple channels to serve their customers. Today, they can choose between branches, contact centers, ATMs and online channels, portals and web banks.

Types of distribution channels

1. Branches. These are the face of the bank and the place where the client meets the bank. The distribution is made by the traditional counter. The bank’s president is far away and not always known to customers.

 2. Specialized branches have been created as an alternative for the classic branches. These specialized branches are focused on a certain type of activity such as: operations for individuals, for small business or for corporate clients. Banks have opened such branches in supermarkets or malls.

 3. In order to better serve certain ranges of clients, banks have also created corporate branches  or private banking branches. These clients require more sophisticated products and services and high standards of quality. Therefore the staff employed in these branches should be seniors in terms of products knowledge and the quality of service delivery.

4. Among the specialized branches, we can also mention: the mortgage branches whose focus

is on selling mortgage loans. Raiffeisen Bank created such a branch named „Raiffeisen – Casa

Ta” as a result of the high demand for mortgage loans and the complexity of these products.

5. Self banking branches were first created by ING. These branches have two areas: one where the customers are served by bank employees (usually 3 or 4 persons) during the normal working hours and one where the customers can use self banking devices. These can be used all day long (24h/24, 7 days/7) and the access to this area is given to all the bank customers who have a debit card.

6. Mobile branches

 7. Banking cafes were first settled in Romania by Banca Transilvania. The banking cafe is the result of a partnership between a bank and a cafe. The branch that is located in a cafe can offer a full range of products and services (information point which offer leaflets, brochures with the bank’s products and services to the existing and potential customers along with financial

newspapers and magazines).

 8. Direct mail is another distribution channel for banking products and services. In the same time, direct mail is also a promotional tool. The aim of delivering the banking products and services by mail can be, not only just simply informing the clients about a new product but also convincing the client to buy a certain product.

 9. Automatic teller machines (ATMs)

ATMs can increase the marketing potential by providing services to clients in others places than  the bank branches. ATMs are an alternative for crowded desks in branches. Cash withdrawals were moved from the cash desks to the ATMs and this transfer is encouraged by most of the Romanian banks by lower fares for these services.

9. EFTPOS (Electronic Funds Transfer at Point of Sale) is a payment method that can be described as a distribution channel. EFTPOS is a system by which the clients pay the services they acquired just by using a bank card. This system is very used when shopping, travelling, buying tickets.

10. Mobile banking appeared in Romania in 2003. At the beginning, only some services were available: account balance, information about exchange rates etc. At present, all the banks provide mobile banking and the range of services provided is very wide: payments, direct debits, information about the nearest ATM/branch etc.

11. Call centers - Raiffeisen Bank was the first bank to start up a call center in Romania in 2004. Up until that moment, the only possibility to contact the bank by phone was through the branches’ numbers.

12. Internet banking. There is a debate about the impact of technology in services marketing, for example the Internet. The Internet-driven information revolution is widely seen to be transforming the way both business and consumer operate. This is particularly relevant inbanking services, where transa ctions do not require interpersonal interaction. In such cases the Internet becomes a new distribution channel.

 13. As banking market is highly competitive, the banks have looked for new formats to successfully develop market and deliver its services. Further promising approaches to distribution can be found outside banking. In many sectors, a rapidly growing number of franchise systems works with self-employed entrepreneurs as franchisees, who sell the franchisor’s products or services, benefiting from a standardized sales and marketing concept.

What is product Distribution

 Distribution means to spread the product throughout the marketplace such that a large number of people can buy it.

A product distribution is a probability distribution constructed as the distribution of the product of random variables having two other known distributions. Given two statistically independent random variables X and Y, the distribution of the random variable Z that is formed as the product

A good distribution system quite simply means the company has greater chance of selling its products more than its competitors. The company that spreads its products wider and faster into the market place at lower costs than its competitors will make greater margins absorb raw material price rise better and last longer in tough market conditions. Distribution is critical for any type of industry or service. The best price product, promotion and people come to nothing if the product is not available for sale at the points at which consumers can buy.

Discuss the various activities of financial institutions for socially responsible marketing

 Globally, the notion of Corporate Social Responsibility (CSR) is fast gaining acceptance as the contribution that businesses can and should make voluntarily towards environmentally sustainable and socially equitable development. Besides the usual financial reporting, ‘non-financial’ or ‘sustainability’ reporting is accordingly also fast gaining usage.

Stated briefly, CSR is about (i) taking stock of the economic, social, and environmental impacts of a business, (ii) mitigating the negative impacts and bolstering the benign impacts, (iii) taking up action programs and community investments to reduce social exclusion and inequality and to address the key sustainable development challenges.

Initiating CSR programs in banks/financial institutions

Embracing CSR has to begin with decision at the highest corporate level (board of directors), and adoption of action programs and performance targets chosen in consultative processes involving the internal and external stakeholders concerned. A first time CSR program of a bank or financial institution would be likely to include action plans for:

i) Ingraining environmentally responsible practices within the organization;

ii) Engaging with borrowers in scrutiny of the environmental and social impacts of their proposed undertakings (along the PKSF 2004 or Equator Principles 2006 guidelines, as relevant);

iii) Reaching out with financial services to the less well off population segments of the community and,

iv) Community investments by way of donations to initiatives of Civil Society Organizations (CSOs), NGOs and institutions involved in health, education and culture; for social and environmental improvement including nutrition, health and education in the disadvantaged population segments.

Foreign banks in Bangladesh having structured CSR programs (in line with their home country practices) can come forward to usefully mentor the new, incipient CSR initiatives of local banks.

Networking and joint initiatives in CSR programs among banks and financial institutions may be useful in some cases in devising more inclusive, comprehensive programs of necessary critical size.

Reporting of the CSR initiatives can begin in a modest way as supplements to usual annual financial reports, eventually to develop into full blown comprehensive reports in the GRI format. Like the statutory financial reports, the CSR reports are expected to be available in the public domain for perusal by stakeholders.

What Corporate Social Responsibility

 Corporate social responsibility (CSR) refers to a business practice that involves participating in initiatives that benefit society. Liz Maw, CEO of nonprofit organization Net Impact, noted that CSR is becoming more mainstream as forward-thinking companies embed sustainability into the core of their business operations to create shared value for business and society.

Corporate Social Responsibility is  defined as  the  voluntary activities to  co- operate in an economic, social and environmentally sustainable manner. As

voluntary activities, the financial institutions may be engaged in green banking, rural development, education assistance, poverty reduction programs, assistance

to people physical disable people, and assistance to peoples affected by national disaster. Some companies may engage in "green-washing" or feigning interest in corporate responsibility, but many large corporations are devoting real time and

money to environmental sustainability programs, alternative energy, and various social welfare initiatives to benefit employees, customers, and the community at large.

"Sustainability isn't just important for people and the planet, but also is vital for business success," said Maw, whose company connects students and professionals who want to use business skills to do social good. "Communities are grappling with problems that are global in scope and structurally multifaceted — Ebola, persistent poverty, climate change. The business case for engaging in corporate social responsibility is clear and unmistakable. Billions are at stake if fast and large-scale action is not taken."

As consumers' awareness about global social issues continues to grow, so does the importance these customers place on CSR when choosing where to shop

"Technology has brought global connectivity and enabled advocacy and awareness for social situations that were once obscure," said Alexis Magnan-Callaway, whose fashion company Pax Cult donates 10 percent of its profits to an organization of the customer's choice. "Millennials are redefining what it means to connect and give back through this technology. It's not just about having a recycling program or sustainable products. People want to feel good about what their dollar is doing."

Consumers aren't the only ones who are drawn to businesses that give back. Susan Cooney, founder of crowdfunding philanthropy platform Givelocity, said that a company's CSR strategy is a big factor in where today's top talent chooses to work.

"The next generation of employees is seeking out employers that are focused on the triple bottom line: people, planet and revenue," Cooney told Business News Daily. "Coming out of the recession, corporate revenue has been getting stronger. Companies are encouraged to put that increased profit into programs that give back."

Types of corporate social responsibility

CSR can encompass a wide variety of tactics, from giving nonprofit organizations a portion of a company's proceeds, to giving away a product or service to a worthy recipient for every sale made. Here are a few of the broad categories of social responsibility that businesses are practicing:

Environment: One primary focus of corporate social responsibility is the environment. Businesses, both large and small, have a large carbon footprint. Any steps they can take to reduce those footprints are considered both good for the company and society as a whole.

Philanthropy: Businesses also practice social responsibility by donating to national and local charities. Whether it involves giving money or time, businesses have a lot of resources that can benefit charities and local community programs.

Ethical labor practices: By treating employees fairly and ethically, companies can also demonstrate their corporate social responsibility. This is especially true of businesses that operate in international locations with labor laws that differ from those in the United States.

Examples of corporate social responsibility

While many companies now practice some form of social responsibility, some are making it a core of their operations. Ben and Jerry's, for instance, uses only fair trade ingredients and has developed a dairy farm sustainability program in its home state of Vermont. Starbucks has created its C.A.F.E. Practices guidelines, which are designed to ensure the company sources sustainably grown and processed coffee by evaluating the economic, social and environmental aspects of coffee production. Tom's Shoes, another notable example of a company with CSR at its core, donates one pair of shoes to a child in need for every pair a customer purchases.

Undertaking socially responsible initiatives is truly a win-win situation. Not only will your company appeal to socially conscious consumers and employees, but you'll also make a real difference in the world. Keep in mind that in CSR, transparency and honesty about what you're doing are paramount to earning the public's trust.

"If decisions [about social responsibility] are made behind closed doors, people will wonder if there are strings attached, and if the donations are really going where they say," Cooney said. "Engage your employees [and consumers] in giving back. Let them feel like they have a voice."