The Era of Corporate Citizenship: Peroduas Advertising with a Social Dimension Harvard Case Solution & Analysis

As home-grown compact car maker Malaysia, Perodua integrated social messages in corporate advertising in 1999, seek to educate the local people on various social issues and values. With the growing concern of corporate social responsibility ("CSR") on a global scale, the advertising company to the social dimension ("CASD") seemed to be an effective way for Perodua to present its good image of the citizen. However, the impact of advertising on direct and tangible benefits in the form of sales has been difficult to determine. Since 2005, the liberalization of trade in South-East Asia has led to a reduction of labor protection for the indigenous automobile industry of Malaysia and there was more emphasis on corporate strategy of differentiation. In response to the growth of competitiveness and increasing interest in CSR, Perodua corporate leaders and management had to rethink how corporate advertising emphasizing the social aspects could support the profitability of the company and its reputation in the long run. In addition, disputes can easily occur when the social issues, such as race-related topics were not treated with sensitivity, taking into account the diverse cultural context of Malaysia. Set in the context of the industry is characterized by increased competitiveness and multicultural environment in which the social impact of advertising emphasized strategy Perodua of CASD is very interesting. "Hide
by Claudia H. L. Wu, Ken Peattie Source: University of Hong Kong, 23 pages. Publication Date: April 9, 2008. Prod. #: HKU741-PDF-ENG

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