PR-profile versus no PR-profile

As previously discussed, any CSR project has a potential of generating a so-called reputational effect. By promoting itself as a good citizen, a company can improve its

reputation among its different stakeholders. Although this effect often arises from CSR, some companies attach more weight to it than others. TrygVesta and Rieber & Søn both recognise that CSR may have a positive effect on their reputation. However, they differ in relation to the emphasis they place on this aspect of CSR. The PR dimension can be a good way of

evaluating the extent to which they actually use CSR as a PR instrument.

To evaluate the PR profile of the two companies‟ CSR programmes, I will first consider whether there are any initiatives with a particularly strong PR profile. In relation to this, I will look at how the companies communicate their CSR efforts and whether they make use of any marketing instruments in their communication. Next, I will look at how the responsibility for CSR is allocated in the organisation. Finally, I will use the companies‟ own views on CSR to evaluate the PR dimension of their CSR efforts.

6.4.1 CSR activities with strong PR profile

In general, all CSR activities have the potential of promoting the company as a good citizen and improve its reputation accordingly. This is also the case for TrygVesta and Rieber & Søn.

However, there are several examples of initiatives that have a stronger PR profile than others.

For TrygVesta, the Lifebuoy is one clear example. By making its brand name and logo visible throughout the country, The Lifebuoy is a way of increasing awareness of the company and the TrygVesta brand in the general public. The same can be said about the project Youth &

Insurance, where the public is invited to meet with TrygVesta and learn about the company and the insurance industry in general. This can be seen not only as a social initiative, but also as an opportunity to promote the company. TrygVesta also admits that the purpose is to increase local people‟s knowledge, not only about risk and insurance, but also about the company. The Night Owls is perhaps one of the CSR initiatives that are best known among the public. The plan to strengthen the association to the Night Owls indicates that TrygVesta recognises the positive effect that this project may have on the company‟s reputation.

However, TrygVesta‟s active involvement in this project beyond financial support and the mutual benefits that the project represents indicate that the Night Owls is much more than an

79 easy way of promoting its brand name. The initiatives taken to create a more inclusive

working environment where employees are heard, such as the Theme package, have a potential PR effect within the organisation. Involving employees in the decision-making process may improve its internal reputation as an employer who listens to and cares for its employees. It may even make employees more motivated to do a better job.

Although these projects have potential reputational or marketing effects, they all have a clear social purpose and a relevance to TrygVesta as a safety provider. This factor, combined with the amount of resources spent, not only in terms of money but also in terms of time, people and expertise, suggests a weak PR profile. TrygVesta‟s communication strategy strengthens this view. Its CSR efforts are primarily communicated via its website and financial reports.

The use of marketing instruments in the company‟s CSR communication is minimal, in particular after it abandoned its previous sponsorship strategy to seek a more active involvement.

In the case of Rieber & Søn, the clearest example of a CSR initiative with significant potential of generating a PR effect is the use of sponsorships, which makes up an important part of Rieber & Søn‟s CSR programme. Sponsoring local sports activities and cultural events, such as the Christmas cup in Bergen, Oslo Ski Festival and a Polish volleyball team, is an

opportunity to promote Rieber & Søn as a company and a brand. The company recognises that this has a potential for generating profit. Donating money to charity can also have a PR effect, merely by linking the company to a good cause. Moreover, as it does not require any efforts on part of the company, it is an easy way of creating a reputation of the company as a good citizen. By replacing the traditional Christmas gifts to employees with donations to organisations helping disadvantaged children, Rieber & Søn makes its efforts visible to its own employees – and customers – and can therefore also increase its reputation internally.

The CSR efforts are communicated via the company‟s website as well as annual report, but the extensive use of marketing instruments such as sponsorships indicates a strong PR profile.

6.4.2 Allocation of responsibility

As mentioned in section 5.2.3, TrygVesta has assigned the overall CSR responsibility to a separate board, consisting of members of top management and assisted by a secretariat. This way of organising CSR suggests that the focus is not primarily on improving the company‟s reputation.

80 Rieber & Søn is organised differently. As we have seen in section 5.4.3, the responsibility for CSR is assigned to the Communication Department, with the Communication Director as a coordinator with overall responsibility for the company‟s CSR initiatives. This organisational choice is explained by Rieber & Søn as an attempt to combine CSR with reputation building.

Hence, Rieber & Søn‟s CSR organisation has a clear PR profile.

6.4.3 The companies’ views on the PR effect of CSR

TrygVesta recognises the positive effect that CSR may have on its reputation. The company is particularly aware of the effect on future employees. Engaging in CSR can increase its

credibility in the eyes of potential employees, and strengthen its status as an attractive workplace. However, it does not engage in any CSR project because of its potential to enhance the company‟s reputation; the PR effect is not a factor in the decision-making process. Rather, TrygVesta seems to recognise the PR effect primarily as a positive side-effect. In general, its views indicate that the company attaches little importance to the PR dimension of CSR.

Rieber & Søn conveys a greater focus on the PR dimension of CSR. It sees reputation building as an essential part of CSR. Although profitability may be harmed in the long run, this may be balanced by long-term positive effects on the company‟s reputation. The company particularly emphasises the reputation among customers, and in the same way as TrygVesta, it focuses on the ability of CSR to increase the company‟s status as an attractive workplace, for both current and future employees. Furthermore, it views sponsorships as a way of combining a marketing strategy with CSR – depending on the nature of the target group – which strengthens its view on CSR as a PR instrument. These factors indicate a strong PR profile.

6.4.4 Conclusion

Although TrygVesta recognises that the PR effect is real, the organisational structure and the character of its activities indicate that it places little emphasis on the potential of CSR to create a positive reputation. Taking all factors into consideration I will argue that TrygVesta has a weak PR profile and therefore can be positioned close to the right end of the axis.

81 Rieber & Søn‟s CSR programme has a stronger PR profile, indicated both by the

organisational structure, the widespread use of sponsorships and the emphasis placed on the reputation building effect of CSR. I will therefore place this company closer to the left end of the axis.

Rieber & Søn TrygVesta

PR profile No PR profile

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