160 Part 2 The Cultural Environment of Global Markets new learning to generate innovative sustainable solutions, although product quality and, inter-nationally, distance from headquarters, affect the positive impact of such initiatives.82 Here we provide two very different social responsibility examples: Philips83 and Mary Kay.84 At Philips Design (a division of Royal Philips Electronics, located in the Netherlands, with 2014 revenues of $28 billion), this approach is known as Philanthropy by Design, a term coined by Stefano Marzano, CEO and Chief Creative Director. In short, it means leveraging design creativity to provide meaningful solutions to empower some of the more fragile categories of society. An excellent example of this approach is the development of the Chulha cook stove described in Chapter 3’s Global Perspective. “Not only does it help many people living at very low income, it is also very beneficial for us,” says Simona Rocchi, Director of Sustainable Design at Philips Design in Eindhoven. “It develops brand equity and trust, it is good for employees’ motivation and can act as a source of inspiration. It also shows new ways of co-creating value through cooperation with ‘unconventional’ partners such as NGOs, local entrepreneurs and self-help groups for women.” But this project is about much more than just designing a healthier, safer, and more efficient way of cooking. The whole business model surrounding the Chulha is aimed at helping it gain widespread acceptance, even if that means using what many would con-sider unconventional means. Take intellectual property (IP) as an example. “We allow local stakeholders to use the IP and design for free as our philanthropic contribution to sustain-able development,” says Rocchi. “In this way we make it much easier to achieve wide-spread distribution of the stoves and help keep costs down. This will not only create better living conditions for the users, but also stimulate local entrepreneurial activities with a low environmental impact.” Local players have been identified who will take care of manufac-turing and distribution. “We have found a number of companies with suitable facilities for making the stoves,” says Unmesh Kulkarni, a senior manager at Philips Design Pune, India. “We are helping them to work with more robust moulds from glass-fiber reinforced plastic because they last longer than steel moulds and enable more complex shapes to be created. These moulds are then used by the NGOs to actually make the stoves.” A complete support package is being created that includes not just the details of the stove’s physical design but also marketing information for entrepreneurs, communication materials, a training pro-gram for NGOs, and installation instructions. “It is all about appropriate technology,” adds Kulkarni. “We tackled a huge problem using a minimum amount of resources. In many ways this is more challenging than designing a very advanced, high-tech solution. It certainly gives a great deal of satisfaction.” And, as Rocchi points out, it also makes business sense. “This project saw us supporting social innovation on one hand while contributing to business innovation on the other. Everyone benefits. That’s why it is our intention to carry out at least one Philanthropy by Design project each year.” The Mary Kay Company, headquartered in Dallas, is one of the largest direct sellers of skin care and cosmetics in the world, with operations in more than 35 countries. 2.4 million people sold more than $3.5 billion of products during 2012. The company is “committed to changing the lives of women and children around the world” through both its direct selling operations and its corporate social responsibility activities centered on the Mary Kay Foundation. Since 1996 the Foundation has awarded over $28 million to shelters and domestic violence programs and $16 million to cancer researchers and related causes in the United States and Canada. Beyond North America, Mary Kay supports a variety of charitable organizations in more than 23 countries. We briefly outline a few prominent examples. 82Thomas J. Madden, Martin S. Roth, and William R. Dillon, “Global Product Quality and Corporate Social Responsibility Perceptions: A Cross-National Study of Halo Effects,” Journal of International Marketing 20 (2012), pp. 42–57; Joanna Tochman Campbell, Lorraine Eden, and Stewart R. Miller, “Multinationals and Corporate Social Responsibility in Host Countries: Does Distance Matter?” Journal of International Business Studies 43 (2012), pp. 84 –106. 83Kerry Capell and Nandini Lakshman, “Philips: Philanthropy by Design,” BusinessWeek, September 11, 2008; http://www.design.philips.com. 84Pink Changing Lives (Dallas, TX: Mary Kay Corporate Social Responsibility, 2012); see also http://www.MaryKay.com.
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