Altruism in the corporate sector

Today's blog will focus on two recent examples of corporate social responsibility. One focuses on issues of sustainability, the other on hunger and the current economic crisis. Both are calculated efforts to increase brand profile with the potential ROI of an increased customer base.

The first example is Sierra Nevada Brewing Company, a craft brewery based in Chico, CA. Sierra Nevada has already achieved some fame for their 1.3 megawatt solar installation, one of the largest private installations in the country. They have recently announced a plan to convert discarded yeast into ethanol. An article published yesterday at gas2.0 describes the effort.

Sierra Nevada is partnering with E-Fuel Corp in this project which is slated to start in the second quarter and be in full production by the third. The Efuel 100 MicroFueler will be used to convert the "1.6 million gallons of beer yeast waste annually."

As a brewery already known for its sustainable efforts, this announcement strengthens the profile of Sierra Nevada's established brand. This could potentially bring them new customers, as "green" press reports on the story and consumer curiosity is piqued. The plan has a more direct ROI, however, of decreasing fuel costs for the company fleet of vehicles. There is also a potential to distribute fuel to their employees or sell it to the general public.

The second example is of California Tortilla, a fast casual Mexican restaurant headquartered in Rockville, MD. The chain of 36 restaurants announced a "Burrito Bailout Plan" yesterday, which can be read about at QSR Magazine. From February 9th to the 27th, anyone who can present the chain with unemployment papers dating back to November 2008 will receive a gift certificate for a free burrito. The chain has also recently donated 400 pounds of rice and beans to several non-profit kitchens.

The potential ROI for California Tortilla is, again, an increased customer base. In addition to the publicity and press attention they will receive from their announcements, California Tortilla is handing out free burritos to anyone who has lost a job in the past three and a half months. This group almost certainly includes those who have never eaten at California Tortilla, and the chance for a free burrito may bring them in the door. The free burrito plan, along with their donations to non-profit kitchens also work to establish a brand identity, in which California Tortilla makes sure people are fed.