How Companies Demonstrated CSR during Hurricane Sandy

Trees fell on cars, people searched for food, houses were flooded with water, drivers lined up miles for gasoline: these were the tragic images from Hurricane Sandy, which blasted across the East Coast on Monday night, cutting off modern communications, shutting off transportation and leaving devastation and death in its path. More than eight million people on the east coast, mainly in the metropolitan New York area, were without power.

Natural disasters always challenge people, but they also bring out the humanity in us. We increasingly hear about corporate social responsibility (CSR) during disasters. Large companies claim they aren’t in business just for profits – they also want to give back to society or to serve significant social purposes.

Undeniably, it is a branding advantage to be viewed as socially responsible, especially in times of crisis. It’s no wonder that - during Hurricane Sandy, many corporations and private sector organizations pitched in to help victims of the historic storm.

Here are ways that corporations practiced CSR during and after Hurricane Sandy:

Donating money and goods.
Often times during natural disasters, a cash donation is the most effective and direct way to help those most in need. Companies like JPMorgan, Coca-Cola, The Walt Disney Company, Capital One, General Electric Co., Lowe’s, American Express and Bank of America pledged millions of dollars to relief efforts; Kellogg’s gave $250,000 to the Red Cross and another $250,000 to Feeding America; the New York Yankees donated a half-million dollars to the Red Cross; Verizon Foundation pledged $100,000 to the Red Cross and matched individual employee donations up to $1,000; and the Bayer Foundation provided $75,000 each to the Red Cross and Save the Children.

Beyond cash donations, companies provided storm-ravaged areas with goods that would help in the cleanup and rebuilding efforts. General Motors, for example, donated 50 Silverado pickup trucks and cargo vans to communities --- along the East Coast; SpareFoot, a storage company, offered a free month of storage to families in need of extra space. Abbott Labs gave adult and pediatric nutritional products and rehydration solutions to food banks through Feeding America, and nutritional products, medicine and diabetes care products to free clinics through Direct Relief International. Best Buy’s Geek Squad Agents were on the ground lending their expertise and support to nonprofits, schools and libraries delivering disaster relief to the region.

Banks waived fees.
Major banks including Wells Fargo, Bank of America, JP Morgan Chase & Co., American Express, Capital One and Citigroup are helping affected people by waiving bank fees and extending the period that waivers are in effect.

Citigroup said in a post online, "We hope you and your family are safe following Hurricane Sandy, and we want you to know we are here if you need us." Citibank waived fees, including those typically imposed for overdrafts, nonsufficient funds, and late payment for credit products. Wells Fargo also suspended out-of-network ATM fees in the state’s most affected areas.

Bank of America announced that customers in affected areas did not have to call the bank to get overdraft, late payment, and other fees waived. The bank would automatically waive many charges incurred.

JP Morgan Chase & Co extended waived all mortgage-related fees and offered a 90-day period of relief from mortgage payments to customers seeking assistance in areas hit by hurricane.

In addition to waiving fees, American Express also decided to rebate the merchant discount rate to the Red Cross, Humane Society of the United States, Salvation Army, Save the Children and other nonprofit organizations.

Companies offered charging stations.
For many in the storm-stricken areas, power became a premium commodity, as thousands of people were without electricity.

To help those without power, Duracell, a Procter & Gamble Co. brand, decided to move its mobile charging station to Battery Park. where it accommodates both mobile phones and computers. It also offers internet access, which allows people to use their email and social-media accounts. Rapid responders are roaming New York and New Jersey to give people a place to power up their electronic devices. Those in need also received samples of the most popular sizes of batteries to restock radios and flashlights. The move attracted more than 1,300 likes on Facebook in only two hours.

Brighbox also set up more than 50 charging stations across New York City. People were able to charge their iPhone, Android, or Blackberry phone for free with a working credit card, which was only for identification purposes. William Gridley, CEO of Brightbox said, “We are standing by to assist New Yorkers in the aftermath of Hurricane Sandy and we hope that by providing free mobile charging stations at this difficult time will lessen the impact of the storm.”

Verizon positioned large, trailer-sized charging stations at places including Ohio, New Jersey and West Virginia as well as Staten Island. The service was not limited to Verizon customers rather to anyone that was affected by hurricane. The public can visit the sites to recharge their mobile devices such as smartphones, laptops and tablets. Beyond the emergency charging stations, the company also opened retail locations up to the public for device charging.

Other companies where the power stayed on provided more ad hoc help, opening their doors to people looking for a charge. For example, Goldman Sachs issued a tweet announcing that it was providing people in Manhattan a charging center.

Those in corporations employed as communicators understand the importance of good and reliable information when a disaster occurs.
To provide storm victims and their loved ones outside the affected areas with timely and reliable information, newspapers such as The New York Times, The Wall Street Journal, and Newsday lifted their online paywalls temporarily so readers could access their websites and seek updates without charge.

Mobile communications providers joined forces to boost coverage.
Throughout the affected areas of the East Coast, cell phone service has remained spotty, even nonexistent in some parts. To help remedy the situation, rivals AT&T and T-Mobile joined forces to open up their networks to each other’s customers in New York and New Jersey where their services were impacted by power outages and flooding.

Through this partnership, both AT&T and T-Mobile customers are able to use either network without being charged roaming fees. The call goes through whichever network is the most operational in their area, with no need to change any settings, rate plan or service agreements. AT&T and T-Mobile are both using GSM and UMTS technology that makes sharing much easier.

As a gesture to help people without stable Internet connections, Comcast announced that it opened up all its Wi-Fi hotspots to both subscribers and non-subscribers alike in ten states: New Jersey, Delaware, Maryland, Virginia, West Virginia, Washington DC, Pennsylvania, Massachusetts, New Hampshire and Maine. Those hotspots are free to use until Nov. 7.

Free mobile communications app textPlus announced a donation of 10 million in-app minutes to help victims of Hurricane Sandy. The minutes can be used to make free calls across the country from Apple and Android smart phones and connected devices including iPad touch, iPad and tablets.

Hospitality agencies boosted rewards programs.
Airlines and hotels are also setting up donation-related programs that reward travelers for their generosity. For every $1 a JetBlue customer donates to the Red Cross, he or she will earn six TrueBlue points through November 30, 2012. The airline will match up to $100,000 in customer donations. Customers also won’t be charged extra fees for rebooking or canceling travel reservations. The New York-based airline also partnered with the NYC Food Association and helped –over 25,000 meals from 20 trucks to locations throughout lower Manhattan, the Rockaways, Staten Island, and Hoboken.

United Airlines set up a donation page that allows customers to --- give to the Red Cross, Feeding America and Americares. It also promised to match up to $100,000 to these nonprofit organizations. In addition, the company is awarding up to 5 million bonus miles to members who contribute more than $50.

For American Airlines members, a $50 donation can earn a one-time bonus of 250 miles, or 500 bonus miles for a donation of $100 or more to the Red Cross.

Airlines also allow members to donate their un-used miles to help nonprofit organizations’ volunteers and staff get to critical areas.

Hotels like Hilton, Drury and Marriott offered members bonus points when they made a contribution. In an e-mail to its members, Hilton said the hotel would match up to $100,000 in customer donations. Drury Hotels stated that for a donation of $50 to the Red Cross, members would receive 15,000 points.
Conclusion.
Corporate social responsibility has been practiced in the United States for many years. Whether it is the effort to produce healthier foods or more fuel-efficient vehicles, conserve energy and other resources in their operations, or otherwise make the world a better place, pleas for corporate social responsibility will be truly embraced only by organizations that are wise enough to see that doing the right thing is both a byproduct of and a contributor to their pursuit of profit.

The CSR programs demonstrated by brands during and after Hurricane Sandy can certainly provide perspective to those who refuse to adopt such a strategy. Today’s CSR is not simply a matter of monetary donations. Corporations are developing creative ways to showcase both their corporate values and specific products in relevant ways – in effect, capitalizing tastefully on environmental destruction to leverage public opinion and consumer interests in a positive way. Overall, such strategies resonate well with customers, investors, employees and the general public – creating good will that has serious staying power in the aftermath of natural disasters. .