I have had the good fortune to write about some effective corporate social responsibility programs, including State Farm’s support of music education and Hershey’s efforts to combat social isolation. Such programs make sense at a time when young consumers are expressing a desire to do business and work for socially responsible companies. Indeed, it is highly likely that this trend is an underlying factor behind The Business Roundtable’s recent statement that the primary purpose of corporations should be to serve all stakeholders, and not just maximize shareholder wealth.
In looking at commentary on The Business Roundtable statement, it is clear that there is some controversy. On one hand, many applaud the move, stating that a focus on the greater good is laudable, needed, and to some extent, already in effect. The primary criticism, however, relates to public skepticism about whether the desire to do good will ever be truly balanced with profit motives, especially as many managers still get judged based on stock prices.
A trend that may help companies reconcile the need to balance the shareholder and the broader stakeholder is the growth of investment in funds focused on the environment, sustainability and corporate governance (ESG). There is also increasing evidence that in general, more investors are factoring ESG practices into their choice of equities. Thus, companies are well-advised to engage in CSR efforts but simultaneously heed consumer skepticism.
So what should firms do to engage in effective CSR programs? Aflac’s “My Special Duck Program,” in which pediatric cancer patients are given a robotic version of the Aflac Duck to serve as a smart companion during treatment, is a prime example of an effective CSR initiative.
The Duck is a “smart” robotic companion for children who are coping with cancer. It serves as a companion that can mirror patients’ moods and can emulate the same painful therapies the children have to endure. The Duck also can dance, quack and nuzzle to serve as a source of comfort when patients need it. A web-app that allows children to mirror care routines, feed and bathe the duck and engage in medical play via augmented reality is also included as part of the package.
The My Special Aflac Duck program has four key ingredients that companies should consider when attempting to develop an effective CSR program. They are:
1) Real Impact
As can be seen from the video above, the duck was designed in a way that it truly helps children going through cancer treatments. And Aflac is trying to get it to as many children as possible. Catherine Hernandez-Blades, SVP and Chief ESG & Communications Officer at AFLAC emphasizes this point, stating: “Each year, between 13,500 and 16,000 children are newly diagnosed with cancer in the U.S. Our primary goal is to deliver a My Special Aflac Duck to every child newly diagnosed with cancer in the U.S., free of charge.”
To date, just under 5,000 ducks have been delivered to children at over 200 hospitals in 47 states. Aflac has also committed to investing $3 million to the program in perpetuity, or until there is a cure. Clearly, by making this clever and helpful product available to all patients, the company is having a real impact.
2) Authenticity
Given skepticism toward the profit motive of businesses, CSR efforts must be perceived as being sincere and authentic as opposed to simply a calculated effort to increase revenue. In Aflac’s case, it has shown a commitment to pediatric cancer for a long time. As Hernandez-Blades put it. “Aflac’s commitment to pediatric cancer research and treatment spans 24 years. During that time, we’ve donated more than $135 million to the cause.” This level of investment is indicative of Aflac's long-term commitment to pediatric cancer and signals authenticity.
3) A Great Story
The technical features of the My Special Aflac Duck are impressive, and it is easy to relate to how it helps children going through treatment for pediatric cancer. The story is touching and represents a commitment to bringing comfort and smiles to children who are going through a painful experience. The fact that duck was carefully designed over 18 months of patient-centered research, working with over 100 families, children and clinicians contribute to what is a wonderful story.
Hernandes-Blades further credits key partners for the success of the program, saying “ We are fortunate to have selected partners like Carol Cone on Purpose, Hannah Chung and Aaron Horwitz of Sproutel, MMC and KWI, who are just as passionate about our vision as we are.” No doubt, there was some risk in using Aflac Duck, a highly popular trade character in another context, so the company needed to proceed carefully. However, the innovation involved along with authenticity has made the program a hit -- and a great story.
4) Unifying Issue
Unlike recent forays into social issues on the part of companies like Gillette and Nike that have alienated large numbers of consumers, Aflac’s focus on pediatric cancer has appeal to people from all races, income levels, political parties, and walks of life.
Given the universal appeal of the cause, it is not surprising that Hernandes-Blades reports that via only grassroots public relations and without advertising, the campaign has resonated, “In the first six months of distribution, 15% of Americans had heard of My Special Aflac Duck," she says, "and of those 15%, 100% are more likely to purchase Aflac products as a result.”
It is also the case that Aflac’s corporate reputation as measured by the Reputation Institute has improved. This should be no surprise given that the My Special Duck program meets the above criteria.
More information on the Aflac My Special Duck can be found at https://aflacchildhoodcancer.org/
