2010 corporate responsibility report...2010, and provides performance trends where possible. the...
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2 0 1 0 C O R P O R A T E R E S P O N S I B I L I T Y R E P O R T
5221 Paramount Parkway Suite 200 | Morrisville, NC 27560
www.iContact.com | www.bcorporation.net/icontact
This
paper
com
es
from
a w
ell-
managed fore
st.
1
Ours is a story about technology, innovation and
growth, supported by a genuine belief that business
can contribute to social good in the world.
As an email marketing and online communications
company, we are proud of how our products and serv-
ices help companies and causes succeed online. But at
iContact, the way we do business is just as important.
www.iContact.com
The 2010 Corporate Responsibility Report, our first such report, is designed to inform our stakeholders about
iContact’s social, environmental and economic performance.
RepoRting StandaRdS
This report has been prepared in accordance with the
Global Reporting Initiative’s G3 Guidelines at the C Re-
port Application Level intended for entry-level reporting
organizations. iContact intends to have future reports
checked by the Global Reporting Initiative (GRI). See Ap-
pendix II for the GRI content index. More information on
the G3 Guidelines is available at www.globalreporting.org.
Scope of RepoRt
This report presents the material issues and impacts of
our activities during the fiscal year ending December 31,
2010, and provides performance trends where possible.
The scope of this report encompasses all of iContact’s
wholly owned operations and activities.
ShaRe YouR feedback
Questions or comments about iContact’s Corporate
Responsibility Report can be directed to
[email protected]. We also invite you
to share your feedback by taking a brief survey
at http://tinyurl.com/icontactreport.
RepoRt contRibutoRS
Matt Kopac, Corporate Responsibility
Manager, iContact
Lysandra Gibbs, Corporate Responsibility
Intern, University of North Carolina
Kenan-Flagler Business School
Brian Alvo, Corporate Responsibility Intern,
Duke University Fuqua School of Business
table of contentS
A Message from our CEO. . . . . . . . . . . . . . . . . . . 2
About iContact. . . . . . . . . . . . . . . . . . . . . . . . . . 4
Corporate Responsibility at iContact . . . . . . . . . . . 7
Customers. . . . . . . . . . . . . . . . . . . . . . . . . . . . 11
Community . . . . . . . . . . . . . . . . . . . . . . . . . . . 13
Employees. . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
Environment . . . . . . . . . . . . . . . . . . . . . . . . . . 24
Economy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 29
2011 Priorities . . . . . . . . . . . . . . . . . . . . . . . . . 31
Appendix I: B Corp Rating . . . . . . . . . . . . . . . . . 32
Appendix II: Global Reporting
Initiative (GRI) Index. . . . . . . . . . . . . . . . . . . . 33
i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t
32
A M E S S A G E F R O M O U R C E O
I am proud of the growth and
evolution iContact has experienced
since our founding in 2002. After
launching just nine years ago,
iContact has grown to 300 employ-
ees, $50 million in revenues, and
has venture capital backing to
take us forward into the future.
In recent years, we have adopted
a triple-bottom-line approach to
business and made it our mission
to add value and solve problems
for our customers, our employees and our community.
When Aaron Houghton and I met in 2002, our mission
was to create a technology business that would make
email marketing easy. As the business scaled, we began
to reflect on how we could build a company that fit with
our values. In 2009, we grew to 180 employees and,
seeing an opportunity for iContact to do well while doing
good, set out to make iContact a model for what a
high-growth venture capital company could be in terms
of social and environmental responsibility, while still
driving value to our shareholders.
In 2010, iContact took steps toward fulfilling this mission:
n Incorporated social and environmental measurement
and impact into our company values and purpose
n Achieved B Corporation certification and
joined Green America
n Made our B Corp score a primary Key Performance
Indicator for our Senior Leadership Team
n Hired a corporate responsibility manager
n Launched our employee Changemakers groups
and Culture Committee
n Installed Volunteerforce for Salesforce to facilitate
and track our volunteering and PULSE for Salesforce
to track our social and environmental impact
n Launched our 4-1’s giving program
(1% product, 1% payroll, 1% time, 1% equity)
n Hosted the first two of our now quarterly
free non-profit workshops at our offices
n Conducted and published our first comprehensive
environmental audit
n Offset 51% of our Scope 1, 2 and 3 CO2 emissions
n Established financial incentives for employees
who carpool
n Wrote a supplier policy that gives preference
to local, sustainable and certified vendors
At the outset of 2010, our concrete goals for corpo-
rate responsibility related primarily to our 4-1’s CSR
Program. I was pleased to see us almost double our
inaugural volunteer goal of 1,000 hours, reach 30%
of our goal to give away 1% of our product to North
Carolina non-profits, and donate almost $150,000 to charity.
While the iContact Foundation did not get off the ground, Aaron
and I formally committed 1% of company equity for when the
foundation is formally established in 2011. We also set the goal
to become a certified B Corporation, which we accomplished in
June, and then set a goal to increase our score to 85, which we
achieved in December.
For 2011, our objectives have expanded as our ambitions
have grown. For our customers, we are shooting for:
n Customer Satisfaction Ratings (CSAT) of 90%
For our employees, we aim to:
n Elevate employee satisfaction ratings to 3.9 out of 5
n Reduce employee turnover to less than 15%
n Increase employee and management diversity
n Expand opportunities for employee development,
including a new education reimbursement program
n Engage all employees in corporate responsibility
For our community, we want to:
n Volunteer 3,600 hours and have 90% of our employees
do a minimum of four hours of paid time off volunteering
n Give away an additional 200 free 4-1’s CSR accounts
n Legally form the iContact Foundation
For the environment, our primary goals are to:
n Assume full control of our energy consumption by
amending our lease and sub-metering our space
n Install lighting sensors and publicly display our energy usage
on company monitors
n Flatline our energy use in 2011 at 2010 levels
n Achieve carbon neutrality for U.S. operations
n Reduce landfill waste and move toward 100% environmentally
sustainable materials for operations
For the economy, we plan to:
n Grow our revenues and our team
n Encourage more responsible supply chains by
increasing our local and independent suppliers
to 30% of our significant suppliers
In terms of public policy, we want to see benefit corporation
legislation passed in North Carolina.
Finally, in order to take our commitment to corporate respon-
sibility to the next level, we are evaluating managers on social
performance as well as financial performance, developing a
scorecard to measure our 2011 performance and striving for
a B Corp score of 89.
iContact has already taken tremendous steps towards being
a triple-bottom-line company, but we recognize that our journey
has only just begun. At iContact, we recognize the tremendous
power that technology and innovation have to transform the
world for the better. It is our sincere hope that with a trusted
product and a purpose-driven business philosophy, we can posi-
tively impact the world while we create value for our shareholders.
Sincerely,
Ryan Allis
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Cofo
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Welcome to iContact’s first Corporate Responsibility Report! Thank you for taking the time to learn about
iContact’s journey to become a purpose-driven business with a focus on economic, social, and environmental value
creation. We are proud of the tremendous progress we have made and mindful of the steps that remain.
A History of iContact
i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t
54
n iContact for Salesforce pairs our trusted email marketing
solution with Salesforce’s customer relationship management
tools. By empowering our customers to engage, convert
and retain customers, leads and contacts, iContact for Sales-
force is seamlessly integrated to look and feel like the tools
customers are already comfortable with.
iContact Free Edition, just launched in early 2011, offers our
email marketing solution for free to all customers who have up
to 500 contacts. iContact Free Edition comes with a select set
of templates as well as full email and chat support. We want to
democratize online marketing for all!
2010 AwArds
n Webaward 2010 Best Email Site
n Best of 2010 Customer Choice for AppExchange
(iContact for Salesforce)
n Inc. 500 #345
n Business Leader Magazine Corporate Volunteer of the Year
n B Lab Einstein Award
CerTiFiCATiOns And MeMBersHiPs
B CorporationiContact was proud to become a B Corporation in 2010 after
completing the comprehensive B Impact Ratings Survey.
A certified B Corporation is a new type of corporation that uses
the power of business to provide a public benefit. B Corps are
unlike traditional businesses because they meet comprehensive
and transparent social and environmental performance standards,
meet higher legal accountability standards and build business
constituency for good business.
When we first took the assessment we fell short of a qualifying
score of 80. However, after taking deliberate steps in early 2010,
iContact crossed the threshold with a score of 82 and qualified
for certification. To elevate our B Corp rating, we:
n Hired a staff person to focus on corporate responsibility
n Tied company bonuses to our corporate responsibility
performance
n Implemented a new whistle-blowing policy
n Conducted our first environmental audit
n Switched office and janitorial cleaning supplies to
more environmentally friendly products
n Reduced our year-on-year carbon footprint by 30%
and offset 51% of emissions for 2009
Our commitment to improving our social and environmental
performance led us to make our B Corp score a Key Performance
Indicator for our Senior Leadership Team. We set a goal to reach
a score of 851 by the end of 2010, which we attained by:
n Developing a conflict of interest questionnaire for our Board
n Passing a new policy to evaluate all managers on their teams’
community performance
n Implementing a new supplier policy that gives preference to
local, sustainable, women- and minority-owned enterprises
n Exceeding 75% of employees volunteering in 2010
For our efforts, we were highlighted in the 2011 B Corp Annual Re-
port. For 2011, our company goal is to reach a B Corp Rating of 89.
Green AmericaiContact was also proud to become a Green America Associate
Member in 2010. Green America is a non-profit membership
organization dedicated to harnessing the economic power of
consumers, investors and businesses to promote social justice
and environmental sustainability. They do this by screening and
approving businesses for social and environmental responsibility.
In 2011, iContact will complete the Green America screening
process and seek the Green America Seal of Approval. To receive
the Seal of Approval, companies must demonstrate that they:
n Focus on using business as a tool for positive social change.
n Are values-driven, as well as profit-driven
n Are socially and environmentally responsible in the way they
source, manufacture and market their products and run their
offices and factories
n Are committed to and employ extraordinary and innovative
practices that benefit workers, communities, customers and
the environment
Our Business
iContact is the second-largest email marketing firm in the world
for SMBs as measured by revenues and employees. We are based
in North Carolina, incorporated as a Delaware C Corporation and
recently opened our first international office in London. We serve
over 70,000 small and medium businesses and non-profit organi-
zations worldwide.
iContact empowers companies and causes to easily create,
send, and track effective email newsletters, surveys, blogs,
autoresponders and RSS feeds. We believe that email marketing
should be easy and have designed iContact to give customers all
the best features at the right price. Our Email Marketing Solution
serves our small business and non-profit customers, while our
suite of iContactPlus products is targeted at medium businesses.
iContact’s Email Marketing Solution provides the tools to
empower our customers to grow and manage contacts, easily
create and send attractive messages, achieve deliverability rates
of 99%, track emails, and integrate with third-party applications.
iContactPlus delivers our leading email marketing platform
plus customized managed solutions. Certified experts work
directly with customers to ensure their email marketing cam-
paigns succeed. iContactPlus has five offerings:
n Enterprise Solutions leverages iContact’s leading email market-
ing platform while delivering affordable, customized account
management services. Certified experts guide customers every
step of the way while assisting with design, strategy and
performance analysis.
n The Partner Program allows approved partners to leverage the
iContact email marketing platform to deliver an email solution
to their customers. Under the Partner Program, iContact pro-
vides co-branded landing pages, dedicated support, marketing
materials, API access and commissions.
n The Agency Program is intended for advertising agencies,
marketing companies, or other professional services firms
looking to deliver best-in-class email marketing services to
their clients. Agency clients are able to seamlessly manage
any number of client accounts from one central platform.
n High Volume Sending is designed for marketers with large
message volumes. With iContact’s High Volume Sender
Service, customers get high inbox delivery rates, fast
message delivery rates and access to a dedicated Client
Success Manager for professional assistance.
A B O U T i C O N T A C T
Ceo ryan allis poses with members of hisstaff to celebrate becoming a b Corporation.
1 A detailed analysis of our B Corp rating appears in Appendix I
i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t
76
V I S I O N , M I S S I O N , P U R P O S E , V A L U E S
Wow the Customer – We wow our customers with our product, service and attitude.
We always value our customers because their success drives ours. We keep the
customer in mind when making decisions. We are a customer-centered organization.
Operate with Urgency – We maintain a proactive bias toward action. We seek speed
of implementation. We seize opportunity while maintaining quality. We own the issue.
Today, not tomorrow! TNT!!
Work without Mediocrity – We hold ourselves accountable for the highest
performance standard. We won’t tolerate low performance. We are always learning
and improving. We engage in honest, direct, and passionate debate. We make
commitments thoughtfully. We will provide immediate, honest feedback.
Make a Positive Wake – We are ethical, act with integrity and follow the Golden Rule.
We enjoy ourselves, have fun and are a bit wacky. We make our culture
creative, energetic, and fun. We care about and report on our social and environ-
mental impact. We build people up. As we succeed, we give back.
Engage as an Owner – We efficiently use resources as if they are our own.
We recognize time and cash are precious and treat them as such. We enable every
team member to become an owner.
wOw
M
e
Our VisiOn
Build a great global company, headquartered in North Carolina,
for our customers, employees and community
Our MissiOn
Make online marketing easy so companies and causes can grow and succeed
Our 2020 MissiOn
Become the largest global provider of products and services
that power the online marketing success of SMBs
Our PurPOse
Create value for our customers, employees, community and shareholders while having
fun and serving as a model for what a high-growth venture-backed company can become
in terms of social and environmental responsibility
VAlues
Our WOWME values form the foundation of our MVP Statement
and all of our decisions and actions
sTAkeHOlders Our MATeriAl issues Our PriOriTies key PerFOrMAnCe indiCATOrs
Customers Provide memorable
customer support
Employees Build a fair, diverse
and inclusive workplace
Attract and retain great people
and create opportunities
for continued development
Engage all employees in CR
Community Build up the communities we’re
located in
Environment Be an environmental leader
among our peers
Continuously improve our
environmental footprint
Manage the social and
environmental risks
of our operations
Economy Continue to grow customer base,
employee base and revenue
Use suppliers that demonstrate
socially and environmentally
responsible practices
Delivering “WOW” through products
and customer service is core to our
business strategy.
To retain employees and build future
managers for the company, we need
to focus on development. We must
empower our team members to drive
the company forward, both in core
work functions and in corporate
responsibility initiatives.
iContact is committed to giving
back to the community.
iContact is committed to
reducing and mitigating our
environmental footprint
We aim to be the largest provider of
online marketing services in the world
and a significant contributor to
the North Carolina economy.
Our corporate responsibility (CR) initiatives derive from our value to Make a Positive Wake and are woven into all aspects of our business.
The purpose of these initiatives is to ensure we serve all of our key stakeholders in meaningful and measurable ways. In order to ensure that
our actions match our words, we are in the process of identifying the key performance indicators to measure our successes and shortcomings.
We will continue to refine these metrics throughout 2011.
C O R P O R A T E R E S P O N S I B I L I T Y
CSAT Scores
Employee Satisfaction Score
Turnover rates
Diversity metrics
Percent of employees and managers
whose bonuses include social and
environmental criteria
Meet our 4-1’s goals
Metric tons of carbon emissions (CO2e)
Reduction of energy use relative
to baseline year (%)
Average number of sheets of paper
used per employee per year
Percent of paper and other materials
that are recycled content or
otherwise sustainable
Reduction in landfill waste stream
Growth in top and bottom line
Growth in employee headcount
Percentage of suppliers that
meet established criteria
enVirOnMenTAl CHAnGeMAkers
Led in 2010 by Chris Thiele and Neil Lancia, the Environmental
Changemakers promote environmental sustainability within
iContact’s walls, in the Triangle, and in the broader world. In its
first year, the committee focused most of its efforts internally.
Some of the projects the group has taken on include:
n Implementing a centralized waste and dual-stream recycling
collection system, and purchasing a scale to measure landfill
waste and recycling output
n Convincing the company to purchase LED monitors
instead of LCD
n Procuring iContact-branded sporks and plates for all employees
to replace throw-away utensils and plates
n Putting up an iContact carpool map and requesting financial
incentives to facilitate and encourage participation
n Adopting a stretch of highway near the office
Says committee member Tiffany Ogren, iContact for Salesforce
success manager, the Changemakers “attract some very bright
minds from within the company, and the ideas that flow when
they all get together are spectacular! It’s amazing to watch an
idea transform from the first thought process in a brainstorming
session, all the way to fruition.” And the benefits do not stop at the
company doors, said Ogren. “Changemakers’ ideas and mind-set
also spill over into our personal lives. The other day, when shopping
for a new travel coffee mug, I opted for one made of recycled mate-
rials, because I knew my fellow Changemakers would be proud!”
sOCiAl resPOnsiBiliTy CHAnGeMAkers
Says Craig Burham, account manager, a 2010 co-leader alongside
colleague Amber Neill, “The Social Responsibility Changemakers
is a group of people who are passionate about creating a healthy
and productive work environment, as well as finding ways for
iContact to give back to the community.” Some of the projects
the group took on in 2010 include:
n Developing a non-profit ambassadors program to connect
employees with non-profit partners
n Launching a free email marketing workshop for
North Carolina non-profits
n Hosting monthly spotlights on local non-profits at lunchtime
n Organizing Habitat for Humanity, Conservators’ Center and
other group volunteer activities
n Formulating a new process for allocating our corporate giving
n Consulting with HR on a new education reimbursement program
n Contracting with Triangle Healthy Vending to give our
employees access to healthier snacks
n Sponsoring an on-site fair trade fair for employees
Says committee member Ann Garrison, “The reason I got
involved with Changemakers was the same reason I accepted a
job at iContact. Not only is this a great company, but the 4-1’s
program impressed me. My favorite parts about the Change -
makers are being the first to know about volunteer activities
and company contributions and having the opportunity to take
an active role in improving what makes iContact unique.”
wHAT we’re wOrkinG On
While attendance at Changemakers meetings is strong, participa-
tion is weighted toward a couple of departments. In 2011, we aim
to increase participation across all company departments. One
challenge is accommodating our Customer Support colleagues,
who by the nature of their work have less flexibility in attending
company functions.
In order for iContact to fulfill our vision of being an enduring
triple-bottom-line company, the long-term goal is for corporate
responsibility to be part of everyone’s job description. It must be
ingrained into the culture and fabric of the company’s operations.
In 2011, we will be identifying recycling captains in order to have
a Changemakers representative in each department. This will
be the foundation for having a point person in each department
whose core responsibilities include liaising with the corporate
responsibility manager and the Changemakers working groups to
align their team members’ actions with the company’s corporate
responsibility goals.
wHisTleBlOwer POliCy
This policy provides an avenue for employees to raise concerns
with reassurance that they will be protected from reprisals or
victimization for whistle-blowing. The policy is intended to cover
protections for employees if they raise concerns regarding
iContact, such as incorrect financial reporting, unlawful activity
and activities that are not in line with company policies including
the Code of Business Conduct.
GOVernAnCe
The Board of Directors is responsible for setting the tone for a
culture of integrity and responsibility, overseeing management
and considering and approving strategic alternatives and plans.
The Board comprises shareholders, investors and iContact’s
founders. Shareholders can make recommendations directly to
the Board, while employees communicate ideas through their
managers and through employee committees (“Changemakers”).
The Board discusses iContact’s corporate responsibility strategy
with management and reviews the Corporate Responsibility Report.
Chief Executive Officer Ryan Allis has primary responsibility
for ensuring iContact acts as an exemplary corporate citizen.
Executive Sponsor Pam Rose, VP of Human Resources, is
the liaison to the Senior Leadership Team on Corporate Respon-
sibility Initiatives.
Corporate Responsibility Manager Matt Kopac oversees the
development of the Corporate Responsibility Report. Kopac is
charged with leading iContact’s corporate responsibility initiatives
and integrating social and environmental responsibility principles
into all aspects of the business.
Employee Committees The Changemakers are employee-based
action teams that provide the fuel, passion and ideas for many
of iContact’s Corporate Responsibility initiatives. These employees
come together from across the company to help iContact fulfill
our purpose. While iContact’s corporate responsibility vision comes
from our executive leadership, we find success only through the
active buy-in of employees at every level of the company.
Allis first formed the Changemakers in early 2010. Borrowing
from Ashoka: Innovators for the Public’s descriptor for social
entrepreneurs who seek to bring about positive and transformative
change in the world (“Changemakers”), Allis envisioned the group
offering ideas for how the company could innovate around social
and environmental value creation.
In June 2010, there was sufficient enthusiasm and involvement
from employees that the Changemakers were split into two
committees: the Environmental Changemakers and the Social
Responsibility Changemakers. Each committee has volunteer
employee leaders who facilitate the involvement of their
colleagues. In 2010, 60 of our 240 employees were actively
involved with these groups.
Allis also formed a culture committee in 2010 to help define
and reinforce iContact’s unique corporate culture.
C O R P O R A T E R E S P O N S I B I L I T Y C o n t i n u e d
i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t
98
CHris THiele Facilities Manager
“Simply that the Environmental
Changemakers committee exists is
testament to the ability of a corpora-
tion to take a principled stance,
point itself in the direction of being
environmentally responsible and
then engage in vigorous
problem solving to act while not
adversely affecting the business
side. I am proud to be part of this
company, and I believe that if we
maintain and follow through,
iContact should serve as a lodestone
to other like-minded businesses that
might not know how to get started.”
Ann GArrisOn Transition Specialist
“My favorite parts about the
Change makers are being the first to
know about volunteer activities
and company contributions and
having the opportunity to take an
active role in improving
what makes iContact unique.”
i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t
lAurA BenninG Customer Experience Advocate
“Our customer support team is
the lifeline to our customers.
Being at the front lines, they have
a unique opportunity to hear
what our customers are saying
firsthand… good and bad.
And the support team doesn’t
just listen to feedback from
customers; they also teach,
encourage, train, guide, calm
and empathize. They find
solutions and provide the
stepping stones that give
our customers a path
to email marketing success.”
“The iContact support team is a
legion of rock stars that sincerely
want to help our customers
succeed. How many companies
can say that these days?”
MeAsureMenT
In addition to utilizing third-party tools, such as the B Ratings
Survey, iContact performs our own internal measurement of key
social and environmental performance metrics. These are made
available to employees through two Salesforce.com applications:
Volunteerforce and Pulse.
In early 2010, we launched Volunteerforce, an application that
allows companies to create a database of volunteer organiza-
tions, activities and contacts. Volunteerforce provides a platform
for employees to easily sign up and track their volunteering online
and lets managers approve and track their direct reports’ volun-
teer time during work hours. We are able to then transparently
measure and display our progress against our volunteer goals.
We also began using Pulse in 2010. Pulse is a web-based tool
that allows businesses, foundations, investors, associations and
non-profits to gather and manage metrics data relating to social
and environmental performance. Pulse uses standard metrics
as developed by the Global Impact Investing Network’s (GIIN)
Impact Reporting and Investment Standards (IRIS) taxonomy,
which was developed with support from the Rockefeller Founda-
tion, B Corporation, Acumen Fund, PricewaterhouseCoopers
and Deloitte. Users can then submit their data to IRIS and
access the aggregate data for the purposes of benchmarking.
iContact uses Pulse to track and make available data on:
n Charitable giving
n Volunteering
n Employee diversity
n Turnover and job growth
n Energy use and carbon footprint
n Supplier statistics
iContact employees can then interact with this data through
concise charts and graphs to see trends over time. Allis keeps
some of these key metrics on his CEO dashboard.
We believe this level of measurement transparency will enable
our employees to better understand our corporate responsibility
initiatives, see how we are performing in comparison to our
goals, and feel empowered to take action.
PeTer AnsBACHer Account Manager
Ansbacher, our top male volunteer,
is an account manager in the Sales
Department. Since iContact started
the 4-1’s volunteering program in
early 2010, Ansbacher has been an
avid volunteer, logging 69 hours with
three different organizations.
“It makes me strive to do even better
in my job and push harder, knowing
that the better our company does,
the more opportunities we will have
to help others, both monetarily and
through our volunteering.”
Ansbacher also volunteers with the
HOBY Leadership Seminar, which he
named as his favorite volunteer
experience in 2010. “This seminar is
an intensive three-day volunteer
event that I facilitated for a group
of 12 bright, rising high school
juniors. It was an amazing
experience and it was great to be
able to see that we have students
with a very bright future who
are going to make great leaders.”
C O R P O R A T E R E S P O N S I B I L I T Y C o n t i n u e d
1110
C U S T O M E R S
As a company, our primary stakeholder is our customer. If we do
not fulfill our promise to help our customers grow and succeed
online, we will not be around in the future to serve our other
stakeholders. In order to keep abreast of our customers’ experi-
ence, we deploy regular surveys to get feedback on:
n Overall satisfaction with our products and services
n Satisfaction with our customer support
In 2010, we received an average of 1,915 survey responses
per month.
OVerAll sATisFACTiOn wiTH iCOnTACT
In terms of overall experience, we ask our customers to rank
our performance from the trial period, user experience with our
products and services, to our customer support. Starting in
October 2010, we began asking our customers to rank us on a
scale of 1-5. From October to December, 85.5% of respondents
gave us a 4 or 5 out of 5, with an average rating of 4.27.2
iCOnTACT CusTOMer suPPOrT
At iContact, we believe that our exceptional customer service,
provided through phone, chat and email, inspires every part of
our business to excel, and distinguishes us from our competitors.
In monthly surveys, customers have given us great feedback:
The percentage of customers who are satisfied or extremely
satisfied with our customer support is consistently above 88%.
In November 2010, we surpassed 90% for the first time.
2010 Overall Customer Satisfaction Ratings
90
85
80
75
%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2 Before October 2010, we had customers rank us on a scale from 0 to 10. Between January and September 2010, over 86% of survey respondents rated us a 7 or above out of 10.
lAurie OsBOrne QA Engineer
Laurie Osborne was our top volunteer in 2010. In addition to completing all 20 hours of the time allotted to her under the 4-1’s CSR Program, Osborne completed an
additional 80 hours of volunteering in her personal time. Said Osborne,
“I’ve always had a heart for giving mytime to help those in need in the
community. When you recognize thatyou can make a difference by putting
your effort, along with others’, to make something amazing happen,
it’s a wonderful feeling.” What is more, volunteering has
brought her closer to her colleagues.“Volunteering has given me a chanceto bond with others [coworkers] who
have that same passion.”
Among other activities,
Obsorne volunteers with the Hugh
O’Brian Youth (HOBY) Leadership
Seminar. Her favorite volunteer
experience in 2010 was with
“the Conservators’ Center, building
winter homes for the kinkajous!”
1312
wHAT we’re wOrkinG On
In 2011, we aim to keep our customer ratings high while we scale
our active users. For customers’ overall experience with iContact,
our goal is to continue to exceed 85% satisfaction and top our
Q4 2010 average rating of 4.34. In terms of customer satisfaction
with their support experience, our goal for the year is 90% satis-
faction. Moreover, we now track the percentage of customers who
say that they were WOWed by our customer service. For 2011,
our target is to have more than 70% of survey respondents state
that they were WOWed.
CusTOMers And COrPOrATe resPOnsiBiliTy
We also recently surveyed our customers to gauge their awareness
and opinions of our corporate responsibility initiatives. The principal
takeaway from the survey was that if we wish good corporate
citizenship to be one of our value propositions to customers, we
need to do a better job of communicating our efforts:
n Only 4-5% of respondents were aware of our 4-1’s CSR
Program initiatives.
n A slightly greater proportion of respondents (15%) were
aware of our environmental initiatives.
n Only 1% of respondents were aware of our progressive
employment practices.
n 13% knew what a B Corp is, while only 4% knew that
iContact is a certified B Corp.
Perhaps in part due to this lack of awareness, only 10% of
respondents said our corporate responsibility was a factor in
their decision to use iContact. However, 54% said they were
more likely to remain an iContact customer because of our social
responsibility (52% due to our environmental responsibility).
Similar numbers said they were more likely to refer friends and
colleagues to iContact now that they know about our corporate
responsibility initiatives.
Most impressively, respondents who were aware of our
environmental initiatives had a 16 point higher Net Promoter
Score (the likelihood that a customer would refer us to friends
and colleagues) for iContact than those who were not aware.3
At the same time, there were customers who told us that corporate
responsibility was not an important consideration for them.
Below is a sampling of the qualitative feedback from the survey:
n “I was not aware of iContact’s current and ongoing support
of social and environmental causes. Receiving this information
on iContact’s involvement will definitely be another reason
to be a proud and loyal client of your marketing services.”
n “I take my own green initiatives, and I don’t have time to worry
about what you do. If your organization was local, then I would
worry about your social responsibility and green initiatives.”
n “I use iContact because of its pricing and great customer
support. All of the ‘green’ stuff is fine but the product and
service is why I am really using you.”
n “We are happy knowing we are working with such a socially
responsible company!”
n “Great job — I wish I had known about all of these initiatives.
Our company is trying to be more sustainable, too.”
n “The social and environmental initiatives don’t matter to
me as much as having a great interface for creating outgoing
emails. I hope you can work on making the writing of emails
more user-friendly!”
C U S T O M E R S C o n t i n u e d
2010 Satisfaction with Customer Support Experience
90
85
80
75
%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
3 There were too few respondents aware of our social responsibility initiatives to draw any conclusions
2010 Average Satisfaction Rating
5
4
3
2
1
Oct
Nov Dec
Our 4-1’s COrPOrATe sOCiAl
resPOnsiBiliTy PrOGrAM
For iContact and other businesses to be successful and enduring,
the context in which we exist – our community in the broad sense –
matters significantly. By helping make our community stronger
today, we believe we are helping our business over the long term.
In 2010, we introduced our 4-1’s Corporate Social Responsibility
Program (4-1’s CSR Program) as a way to formalize and standardize
our community giving. We felt that a more strategic and transparent
approach to community engagement would hold us accountable
and align more fully with our business goals. Along the way, we
discovered that these initiatives are also great employee engage-
ment tools, connecting employees to the world and imbuing their
work with even greater meaning.
Our 4-1’s CSR Program includes the following contributions:
n 1% of Employee Time n 1% of Product
n 1% of Payroll n 1% of Equity
1% OF eMPlOyee TiMe
In order to empower our employees to be active members in their
communities, we allocate 1% of employee time, equivalent to
2.5 paid workdays (20 hours) per employee per year, to volun-
teer activities. Volunteerforce is available to assist employees in
finding charitable organizations and activities that interest them.
Our approach is to offer a mix of group and individual activities,
including recommendations by the corporate responsibility
manager and by other employees who input opportunities into
Volunteerforce. Our employees readily participate in activities
from coaching for the Special Olympics, to building homes for
Habitat, to working in local soup kitchens, to building websites,
to helping organize runs/walks for charity and more.
Over the course of the year, we saw tremendous growth in the
number and percentage of employees volunteering. We attribute
this growth to increased awareness of the paid time off, a greater
number of available volunteer activities and the simple passage
of time, which afforded more opportunity to get involved. Nine
employees volunteered in January 2010; by the end of the year,
158, or 76% of the company,4 had volunteered at least once
during the year. Thanks to this great participation rate, we per-
formed 1,867 volunteer hours with 84 non-profit organizations,
surpassing our 2010 volunteer goal of 1,000 hours.
C O M M U N I T Y
4 Based on the average number of employees employed (211) at iContact throughout the year
i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t
15
n “In some departments, there is a stigma that you’re
abandoning your work duties to volunteer when you take
the 1% that the company provides”
n “It’s not a priority for me”
n “Mostly laziness and time constraints to a small degree”
n “Time management is my reason for not volunteering more.
I am working towards volunteering more in 2011”
For 2011, our twin volunteer goals are:
n Volunteer over 3,600 total hours for the year (including
personal time that employees report, which we can now
track separately from 4-1’s volunteering)
n 90% of employees will volunteer at least four
hours of their total 20 hours of allotted time
To surmount obstacles to volunteering and to further weave
performance on corporate responsibility in with other company
expectations, we will be evaluating all managers on the extent
to which their direct reports volunteer in 2011.
1% OF PrOduCT
At iContact, we believe in the power of our product to help
companies and causes succeed online. Too often, because of cost,
difficulty of use or a lack of human resources, non-profit organi-
zations do not make sufficient use of technology. iContact is
seeking to break down barriers for non-profits in North Carolina
by offering our Email Marketing Solution free of charge to quali-
fied organizations in North Carolina for up to 10,000 subscribers.
At the end of 2010, we were serving 237 non-profits – providing
roughly $14,000 worth of in-kind product per month – and that
number is growing daily.
Additionally, with discounts to non-profit organizations outside
of North Carolina on all of our listed prices and the recent launch
of our iContact Free Edition, we are now able to help causes across
the country take the first steps toward successfully marketing
themselves online.
As a complement to our 1% of Product initiative, iContact
launched quarterly free non-profit workshops in 2010. Our
Changemakers decided that it was not enough to give North
Carolina non-profits free iContact accounts; we had to make
Members of our Finance and Customer support teams at the Conservators’ Center.
14
iContact helps sponsor arthur tigerat the Conservators’ Center.
“Thanks to randall, Communities in schools of durham has benefited from a new and
updated website that more effectively and visually tells our story. Thank you, randall and iContact!
we couldn’t have done this without you.” – Tracie Miller of Communities in schools of durham
kellie BOGGs Account Manager
“I saw the non-profit workshop as an opportunity to volunteer with my fellow iContact colleagues while
getting to know some local non-profitorganizations in the area. How could I
say no to that? The most rewarding partwas the positive feedback we immedi-ately got from the non-profits. It mademe feel good to hear them talk abouthow valuable the workshop was and
how they would walk away with moreknowledge about email marketing.”
The availability of passionate, skilled volunteers from iContact
has had a measurable impact on our community. Tracie Miller of
Communities In Schools, a non-profit whose mission is to surround
students with a community of support, empowering them to
stay in school and achieve in life, commented on the work done
by Randall Rozzell, a graphic designer on our marketing team.
“Thanks to Randall, Communities In Schools of Durham has
benefited from a new and updated website that more effectively
and visually tells our story. Thank you, Randall and iContact!
We couldn’t have done this without you.”
wHAT we’re wOrkinG On
Although we are proud to have surpassed our inaugural volun-
teering goal, we take note of the fact that our employees only
volunteered at best 43% of the total hours made available to
them by the company.5 When asked, “What, if anything, has
prevented you from volunteering or being more engaged in
iContact’s corporate responsibility initiatives?” respondents
gave answers including the following:
n “Work! I love volunteering – it refreshes my spirit! But with
so many initiatives at work and meetings, I feel really, really
guilty about volunteering during business hours”
n “Manager not permitting me to leave work”
C O M M U N I T Y C o n t i n u e d
2010 iContact Employee Volunteering
300
250
200
150
100
50
Full-Time Employees
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Volunteers
sHAwnA BArleTTe Accountant
“As with all things Changemakers, I appreciate that I am afforded the
opportunity to participate at the levelwe are able to in this company. It makes
me feel like I can make a difference.”
5 The actual percentage is sure to be lower than 43%, since in 2010 we were unable to differenti-ate volunteering done on company time from volunteering done on personal time in our system
“iContact employee participation in
our work directly impacts our ability to
deliver effective services to women
in need. similarly the financial support
iContact provides goes directly to our
programs which put disadvantaged women
back on the path to self-sufficiency.”
– Pat nathan
dress for success Triangle, nC
i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t
17
1% OF PAyrOll
The third facet of our 4-1’s CSR Program is to contribute 1% of
our Payroll equivalent to 501(c)(3) organizations. This amount
includes matched donations for individual employee contributions
up to $300 throughout the year, and grants made at the end of
each year. This philanthropic channel allows us to support organi-
zations that strive to make our local and global communities
healthier, safer, more innovative and more just.
Including matched donations, iContact gave a total of $149,045
to 149 organizations in 2010, up from $109,000 to 63 non-profits
in 2009. Of those amounts, iContact matched $8,974 in 2010, a
more than fourfold increase over employee giving in 2009, when
employees requested matches for $2,185.
In addition to supporting deserving organizations, our 1% of
Payroll initiative has proven a great way to engage our team
members in our company purpose: at the end of the year, total
charitable dollars are divided by the number of employees and
each person is given a share of company giving to allocate to an
organization of his or her choosing.
This process was a new innovation in 2010, devised by our
Social Responsibility Changemakers. Prior to 2010, only a small
percentage of non-senior-level management took part in deciding
how to allocate the funds. However, as a result of this shift in
strategy, iContact saw 94% participation in 2010 giving.
Wes Stewart and Shawna Barlette, staff accountants, were two
members of the Changemakers committee that came up with the
new giving process. Said Barlette, “By getting more employees
involved, the new process increased the overall visibility of the
program and encouraged employees to research organizations,
thereby increasing their own understanding of the importance
of this component of our 4-1’s CSR Program.”
With her share, Barlette supported Smilemakers. “As a result
of our contribution to this organization, six children in developing
nations have received life-altering cleft palate surgery. A simple,
and inexpensive, surgery is all it takes to change their lives
forever.” Said Stewart, who supported The Samaritan’s Purse,
“It’s wonderful to work for a company that gives employees an
opportunity to make a positive impact on charitable organizations
that are important to them.”
snAPsHOT OF GiVinG:
n 27% of funds went to organizations outside the United States
n 73% of our giving went to organizations working in the United
States, with 56% granted to North Carolina non-profits
n We supported 149 different organizations across a number
of issue areas, including health, hunger and homelessness,
youth empowerment, international development, animal
rescue and more
iContact employees tiffany ogren and taylor barr volunteer with Habitat for Humanity.
sure they could take full advantage of them. Therefore, in addi-
tion to the array of support we provide to all of our customers,
we hosted our first half-day, on-site workshop for North Carolina
non-profits in June.
The workshops include training on all aspects of iContact email
marketing; instruction on the concept of “deliverability”;6 a best
practices session where non-profits share email marketing strate-
gies; and one-on-one training sessions with skilled technical
service representatives and account managers. Between our June
and November workshops, we trained 35 non-profit organizations.
In addition to providing value to our non-profit participants,
the workshops have also been valuable for our team members.
The workshops, like our other volunteer activities, expose employ-
ees directly to community organizations and the impact of our
4-1’s CSR Program. We have found that this experience turns
employees into evangelists for the program.
wHAT we’re wOrkinG On
With a total of 237 North Carolina non-profits using our free email
marketing product at the end of 2010, we were only serving 35%
of our target. We had over 67,000 customers at the end of 2010,
1% of which would be (670) free 4-1’s accounts. We feel good about
this result after one year, but we have work to do to meet our goal.
By the end of 2011, our goals are to:
n Reach 60% of our 1% goal (about 430 total accounts)
n Continue to train at least 25% of the total number of 4-1’s
non-profits through our quarterly workshops
C O M M U N I T Y C o n t i n u e d
16
6 Getting messages into the inbox with the permission of your subscribers
2009 2010
4-1’s
170
150
130
110
90
70
(in thousands)
160
140
120
100
80
60
40
20
Total Giving
Matched Donations
Number of Organizations
“you guys were amazingly helpful
and considerate during the non-profit
workshop. Our questions were
answered and we left feeling confident
of our ability to use iContact to
communicate with our stakeholders.”
– Alex naar
Center for sustainable Tourism
i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t
1918
In addition to monetary giving, we also gave in-kind support to
Urban Ministries of Wake County through a Thanksgiving food
drive that netted over 500 lbs of food.
wHAT we’re wOrkinG On
We were pleased with the 2010 process and hope to build upon
it to surpass 95% employee participation in 2011.
1% OF equiTy
iContact has committed 1% of company ownership to the iContact
Foundation. The 1% of equity takes the form of over 100,000
shares of iContact stock whose value is determined by the com-
pany’s stock valuation. Ultimately, the foundation will have the
market value of these shares at its disposal to deploy as additional
community investments.
wHAT we’re wOrkinG On
The foundation was originally to be launched in 2010, but will now
be set up as we near a liquidity event. We anticipate that the shares
will become liquid by 2013. In the meantime, we will develop our
grant-making priorities, criteria and processes for the foundation.
C O M M U N I T Y C o n t i n u e d
ryan allis with the rwanda Church Choir in Ginsengi, rwanda while visiting the akilah institute, an iContact grantee. iContact has adopted a highway to help keep our north Carolina environment pristine.
“iContact's email marketing services are
well-designed, crisp, and tremendously
professional. Having free access means
that our funding goes even further toward
direct impact on our clients.”
– sarah kate Fishback
institute for sustainable development
iContact is committed to creating an unforgettable work envi-
ronment for our employees. It is this commitment that made
iContact one of the Best Places to Work by the Triangle Business
Journal four years running from 2006 to 2009. However, after not
receiving the Best Places to Work award in 2010, we are cognizant
that we cannot be complacent.
BeneFiTs
At iContact, we believe in investing in our employees’ health and
future. Hence, we offer benefits that include:
n Health insurance with 100% of premiums paid for employees
under base plan
n Dental insurance
n Short- and long-term disability
n Wellness workshops and health screenings
n Paid maternity and paternity leave
n 401(k) match
n Stock options for all full-time employees
n Employee assistance program
n Flexible spending account
CAreer deVelOPMenT
In order to ensure that our employees can fulfill their roles and
responsibilities in a growing and changing company, it is critical
that we invest in and help grow our people professionally.
Management Training Our yearly Management and Leadership
Training (MALT) series contains six sessions: Management
Essentials; Facets of Management; Coaching Skills; Motivating,
Empowering, and Retaining Employees; Leading & Communicat-
ing Change; and Managing Up, Down & Across. MALT is attended
by all managers, directors and senior leadership to teach new
techniques and foster cross-team collaboration on challenges they
face. Our executive staff also attends the Grinnell Leadership
JumpStart Program to enhance their self-knowledge and continue
their leadership development.
iContact University iContact University is an internal learning
management system that contains 317 online courses developed
by Skillsoft that are available to all employees, anytime, via the
Internet. These courses are grouped into four categories: Busi-
ness Skills, Desktop Skills, HR Compliance & Safety, and IT
Skills. We highly encourage all employees to take advantage of
these courses.
E M P L O Y E E S
i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t
2120
CulTure
A critical component of creating an unforgettable work environ-
ment is fostering a unique culture – a sense of shared identity.
In August 2010, our Culture Committee went through an exercise
to define our corporate culture, where participants were asked
to write down the five words that they felt best described our
culture. The five words that came up most frequently were:
n Fun
n Creative
n Energetic
n Challenging
n Community Oriented
This process gave us vital information about our culture and
where to invest to preserve it. Some of the steps we have taken
to live up to our employees’ vision for our culture include:
Fun, creative and energetic:
n We offer monthly massages for employees, free drinks,
monthly company lunches, and annual car washes.
n We host quarterly high-energy company team
kick-off meetings (with costumes).
n We perform new employee graduations in full regalia with
pomp and circumstance.
n We have a 17’ slide that goes from the game room to the
product and marketing area.
n Our office space is decorated with a world geography theme.
Challenging To work at iContact, you must be passionate about serving
the customer and working hard. We are fast paced and have a
performance-based meritocracy.
Community Oriented
n We are a purpose-driven company and B Corporation.
n Through our 4-1’s CSR Program, we give 1% of equity,
1% of product, 1% of payroll and 1% of time.
JAMes wOnG Communications Manager
James Wong was instrumental in
launching the 4-1’s CSR Program
and has remained active in corporate
responsibility initiatives. Says
Wong, “Being community oriented
is part of the iContact culture,
and participating in 4-1’s initiatives
has provided me with a doorway
into the non-profit world.
I now lecture and present on not
only email marketing topics,
but on a variety of topics to help
non-profits across North Carolina
and beyond.”
And being community oriented
is just one aspect of the
iContact culture. Says Wong,
“Being a little wacky is also an
important part of who we are and
is a nice complement to the
rigorous work environment.”
reCOGniTiOn
As part of building and reinforcing culture, we believe recognizing
and providing positive reinforcement for team members who display
our values is critical. The WOWME Awards program, launched at
the start of 2010, is a peer-to-peer recognition program that gives
employees the opportunity to commend colleagues for exemplifying
a WOWME value. The company backs up the commendations with
financial rewards. In 2010, there were approximately 1,500 peer-
to-peer commendations, or an average of 6.8 per employee.
Our highest form of recognition at iContact is our Outstanding
Performance Award (OPA). OPAs are for employees who truly
distinguish themselves, and each department may award one or
two per quarter.
reTenTiOn
In 2010, our employee base grew by 62, from 180 to 242, a 34%
increase. As our growth has accelerated, we have experienced
elevated levels of attrition.
Employee Turnover 2010 2009 2008
Voluntary7 9.01% 11.85% 11.40%
Involuntary8 12.80% 9.48% 7.60%
TOTAL 21.81% 21.33% 19.00%
For benchmarking purposes, the Employers Association Devel-
opment Group states that the average turnover rate nationally
is 13.9% for companies our size and 14.9% for companies in the
Southeast. According to Culpepper surveys, average turnover
in technology sectors is 20.4%. Average call center turnover can
approach 50%.
diVersiTy
iContact is an equal opportunity employer and is committed to fostering an inclusive, accessible environment where all employees and
customers feel valued, respected and supported.
iContact currently falls below most national averages for diversity in the IT software industry. The gap is the greatest at the
executive and senior management level, where women and in particular minority groups are under-represented.
For middle management and total employees, we fall just shy of national averages for women. iContact is well below national
averages for racial and ethnic minority groups; however, we exceed the national average for middle managers and total employees
for African Americans.
National National NationaliContact9 Average10 iContact Average iContact AverageExecutive and Senior Middle and Other
Demographics Management Management All EmployeesMale 75% 80.7% 76% 72.3% 71% 69.0%
Women 25% 19.3% 24% 27.7% 29% 31.0%
White or Caucasian American 100% 87.7% 92% 74.5% 78% 69.9%
Minority 0% 12.3% 8% 25.5% 19.3% 30.1%
Black or African American 0% 1.3% 8% 2.4% 11.5% 3.7%
Hispanic or Latino 0% 2.2% 0% 3.5% 3.3% 4.3%
Asian American 0% 8.4% 0% 18.8% 4.5% 20.9%
7 A voluntary exit occurs when the employee chooses to leave8 An involuntary exit occurs when employment is terminated9 Source: U.S. EEOC voluntary self-identification data 10 Source: U.S. EEOC-1 aggregate data report, NC, 2008
E M P L O Y E E S C o n t i n u e d
i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t
2322
eMPlOyee sATisFACTiOn
Our recent employee satisfaction survey illuminated what we con-
tinue to do well and gave us areas to focus on for improvement.
In order to gauge employee sentiments about their work experience
and the company culture, we asked employees to rate iContact.
Category 2010 Average11
My Job 3.77
My Team 4.15
Management 4.14
Culture 3.94
n 69% of employees expressed satisfaction with their jobs.
n 87% were proud of the work they do.
n 85% were satisfied with their team.
n 84% were satisfied with their manager.
n 82% would encourage others to work at iContact.
n 82% agreed that “iContact has a great corporate culture.”
One of the themes that came out of the survey in terms of
areas for improvement was in employee development. Just 56%
of employees stated they believe they have an opportunity for
growth within iContact. This feedback also stood out in narrative
comments, where we asked respondents for “Suggestions for
improving the work environment at iContact.”
n “I can’t see or haven’t been told a clear picture of my future
career path here… we always hire managers/directors from
outside instead of giving opportunities to internal people.”
n “I’d like to see defined career paths for individual contributors.”
Another theme that arose from the comments was the need for
better communication across departments:
n “I think cooperation and communication between departments
needs improvement. My department… is usually not consulted
when changes happen in the company and our product which
directly impact what we do.”
wHAT we’re wOrkinG On
iContact has gone through an incredible growth spurt which has
taken us from a small start-up to a medium-sized business in the
span of a few short years. This growth does not preclude a great
company culture, but it can certainly test it. Therefore, culture is an
important 2011 priority for CEO Ryan Allis and VP of HR Pam Rose.
In terms of training and development:
n For our 2011 performance reviews, we’ve added a section on
the review form so that managers and employees can collabo-
rate and select at least two courses they feel would enhance
the employee’s performance.
n All employees are eligible for up education reimbursement of
up to $3,000 in annual tuition and associated fees.
For employee recognition based on employee feedback, we
streamlined the WOWME Awards program for 2011, made it easier
to recognize colleagues for outstanding work and increased the
budget for WOWME Rewards.
Our employee retention goal for 2011 is to reduce both volun-
tary and involuntary turnover in order to bring our turnover rate
to 15% to bring ourselves in line with our regional average and
the average for all service industries nationally.
In terms of diversity, we believe that – in the short to medium
term – it is realistic to bring the share of women in middle manage-
ment and in the total employee base in line with national averages.
While we exceed national averages for African American middle
management and total employees, we would like to raise the
over-arching percentage of minorities represented in manage-
ment to 10% and the general employee population to 20%.
Finally, for employee satisfaction:
n We will perform quarterly snapshot surveys internally and will
contract out an independent, in-depth employee satisfaction
survey once per year. We aim to improve employee response
rates for employee satisfaction and corporate responsibility to
80% or better.
n We will work to increase our employee job satisfaction
score to 3.9.
eMPlOyees And COrPOrATe resPOnsiBiliTy
We also surveyed employees to get their opinions about our Corpo-
rate Responsibility initiatives.12 When asked “Is iContact a socially
and environmentally responsible company?” 99% of respondents
said yes. We also attempted to gauge how opinions about corpo-
rate responsibility influence employee perceptions of our company.
Due to our commitment to social and environmental responsibility:
n 30% “joined iContact.”
n 62% are “more likely to stay at iContact.”
n 66% are “more likely to refer a friend for employment at iContact.”
Employees who have been at iContact the shortest period
of time – less than three months – were the most likely to say
they joined iContact in part due to our corporate responsibility
program, 71%. However, many of the employees for whom our
emphasis on the triple-bottom line was not initially a factor
now feel strongly about our initiatives: 82% of our newest
employees are more likely to stay at iContact due to corporate
responsibility. The same is true for 67% of those with tenure
between three months and six months, and 94% of those between
six months and a year.
In other findings:
n 65% agreed that “iContact’s commitment to corporate responsi-
bility makes me feel more engaged at work” (11% disagreed).
n 55% “believe there is a connection between being socially
and environmentally responsible and a financially successful
business” (31% were neutral).
Below is a sample of responses to the question “What is my
most important recommendation or idea for iContact’s 4-1’s CSR
Program?”
n “Close the office one day a year to do a big company-wide
volunteer initiative.”
n “I would like to see more organization for volunteering
at my department level.”
n “I think it is fantastic in its current form. I have never worked
anywhere that allocates a share of profits for employees to
donate to a cause of their choice, and this program along with
the other 4-1’s really shows iContact ‘walks the walk’ and
doesn’t just ‘talk the talk’ as a lot of businesses do.”
n “I feel like sometimes priorities are a little mixed up at
iContact. We spend what I see as a lot of money on things
which are meant to give the impression that iContact is a
fun company to work for, when in reality I think it’s the
people that make this a great place to work. In my opinion
we don’t give our social responsibility efforts nearly as much
attention or exposure as we could.”
n “Up it to 2%.”
When asked for “my most important recommendation or
idea for iContact’s environmental responsibility,” survey respon-
dents replied:
n “Think way ahead.”
n “Scale it back… let’s be environmentally conscious but
let’s not go overboard with it.”
n “Make sure that the program is highlighted in the interview
process so we know future employees will adhere to and value
the program.”
n “Replace paper towels in the bathrooms with hand blowers.”
n “We need to move away from buying [carbon] credits to
be a B Corp and do more [reduction in usage].”
n “Buy our own building and go off the grid.”
n “Don’t go overboard and toot our horn too much.”
n “Power off monitors during break or lunch.”
n “Install motion-sensing light switches.”
E M P L O Y E E S C o n t i n u e d
11 Out of 5.012 45% response rate
recycling and wastebins line the hallways
of iContact’s offices.
i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t
2524
In 2010, iContact began to focus intentionally on Making a
Positive Wake on the environment. We recognize the risks inherent
in environmental degradation and climate change, particularly
for vulnerable populations in the developing world, and accept
responsibility for doing our part to minimize and mitigate our
footprint. Accordingly, we performed our first environmental
audit in May 2010 and have set goals and tracked progress on
a variety of environmental metrics since.
Starting with our core product, iContact has an opportunity
to have a positive impact on the environment with our email
marketing. According to Verus Carbon Neutral, a company
specializing in the measurement and reduction of energy use
and environmental impact, because of transportation and manu-
facturing impacts, direct mail generates about 18.5 grams of
CO2 per mailed unit. Multiply that by the billions of direct mail
pieces sent in the U.S. each year, and you have a significant
environmental footprint. In contrast, Verus estimated that an
email only generates an estimated .03 grams of CO2 – a 98%
lower footprint.
To get a sense of the shift away from direct mail, when we
surveyed our customers we discovered:
n 35% of respondents reduced their use of direct mail
for customer acquisition when they switched to iContact
(53% did not previously use direct mail for acquisition).
n 22% of respondents reduced their direct mail for retention
when they switched (51% did not previously use direct mail
for retention).
Of those who reduced their direct mail:
n 27% reduced by greater than 75%.
n 42% reduced by greater than 50%.
n 34% reduced by more than 1,000 pieces per year.
Among the respondents who reduced their direct mail, switching
to iContact saved between 87,000 and 153,00013 pieces of direct
mail. Scaled up for our entire customer base, iContact could be
saving between 29 million and 53 million pieces of paper per year.
Nevertheless, despite the benefit of our product as an alterna-
tive to direct mail, it is clear that our operations still have negative
environmental impacts that require attention and mitigation.
Our business does not require any direct input materials that
would be classified as Scope 1 emissions; rather, our carbon
footprint comes in the form of Scope 2 and Scope 3 emissions:
indirect electricity use, business air travel, employee commuting,
and indirect emissions from outsourced servers. We also consume
water and materials for our operations.
enerGy COnsuMPTiOn And enerGy sAVinGs
iContact does not consume any energy directly from primary
sources. However, we do consume intermediate energy in the
form of electricity.
Intermediate Energy: Headquarters iContact relocated in October
2010 from Durham, NC, to Morrisville, NC. One of the challenges
we faced in our previous office building and continue to face under
our current lease is that we are a sub-tenant and not fully in control
of our energy usage. Under both leases, iContact has paid for
energy consumption based on our percentage of building occu-
pancy, rather than being fully responsible for our own utilization.
This challenge notwithstanding, iContact has made strides to
be a more efficient consumer of energy. While the total amount
of electricity consumed by iContact at our headquarters in 2010
was 891,262 kWh, up 5.1% from 2009, our energy consumed per
employee and per square foot decreased in 2010 compared to 2009.
From January through October 2010, iContact occupied 59% of
the 62,382 square feet available in our Durham facility, or 36,582
E N V I R O N M E N T
2010 iContact Electricity Use
900
800
700
600
500
400
300
200
100
Employees
3
2
1
kWh and SqFt
ployee
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
ployee
kWh by Employee
Sq Ft per Employee
ployees
er Sq Ft
Full-Time Employees
kWh per Sq Ft
13 We asked respondents to estimate their reduction in directmail, from 1-1,000 pieces per month and on up to 20,000+
square feet. Based on our percentage of building occupancy, we
consumed an average of 75,540 kWh of energy per month, which
translates to 374 kWh per employee and 2.06 kWh per square
foot. As compared to our energy consumption in the same building
in 2009, we decreased our per employee consumption by 11%
and our per square foot consumption by 2% over this period.
In November, we relocated to our present facility in Morrisville.
Because the building is more energy efficient, we saw just a 4%
year-on-year increase in electricity usage to an average of 72,932
kWh, compared with the same period in 2009, despite almost dou-
bling our square footage. Despite an increase in square feet per em-
ployee (up to 1.04kWh per square foot) and kWh per employee
(297.68 kWh per employee), our kWh per square foot decreased.
For all of 2010, our total kWh was 891,261, average kWh
per employee was 351 and kWh per square foot was 1.87. As
compared to our energy consumption in 2009, we increased total
consumption by 5%, decreased our per employee consumption
by 16% and decreased our per square foot usage by 7%.
Energy Intensity Another measure of iContact’s increasing energy
efficiency is our energy intensity – converting energy into rev-
enues – which has steadily decreased over much of the past two
years. As a technology firm, we can scale our revenues without
proportional increases in energy and other resource consumption.
Other Indirect Energy Consumption Looking into our supply
chain, iContact also consumes electricity via our offsite servers.
Our server host estimates that we used 14,232 kWh/month,14 or
170,787 kWh/year in 2010, all through Duke Energy.
Total Indirect Energy Consumption Between our headquarters
facility and our hosted servers, iContact consumed 1,062,000 kWh
in 2010. This represents an absolute increase of 4.3% over 2009,
but a 16.5% decrease per capita.
wATer
Nearly all of the water iContact uses in our operations is for
sanitary purposes and our kitchen. As iContact has grown in size
and moved to our new facility, we have seen a spike in water
consumption. In 2010, we used an average of 2,945 cubic feet
of water per month, based on our percentage of occupancy,
compared to 2,246 cubic feet per month in 2009.
This increase in consumption has been driven primarily by an
increase in employees, but also by an increase in consumption
per employee in our new facility from 13 Ft3/month per employee
in our Durham facility to 20 Ft3/month in our Morrisville facility.
This is somewhat surprising since we have electronic sensor faucets
in the restrooms. One explanation may be the dishwasher we
installed in order to cut down on the disposable plates and cutlery.
Water Source In our previous facility, water was provided by
the City of Durham. All water used by the city comes from two
2010 iContact Intermediate Energy Use as a Percentage of Revenue
3
2
1
%
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Energy as % of Revenue
440
420
400
380
360
340
320
300
Electricity and Square Footage
Total kWh
Average kWh/employee
Total Sq Ft
100
80
60
40
20
(in thousands)
2009 2010
14 Based on one-day reading in June 2010, annualized
i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t
2726
sources, Lake Michie and Little River. Water is then pumped to
two treatment plants, the Brown Plant and the Williams Plant,
with the former supplying 75% of Durham’s water and the latter
25%. iContact drew water from both of these plants.
In our new facility, water is provided by the Town of Cary, NC.
Cary produces drinking water from Jordan Lake at a treatment
plant that it owns with the Town of Apex. The water plant is six
miles from Jordan Lake, which is part of the Cape Fear River
basin. The lake was created to supply water regionally, control
flooding, improve flow downstream, and provide recreation.
There is no indication that the water sources in Durham or Cary
were or are significantly affected by iContact’s use of water.
wHAT we’re wOrkinG On
Despite the decrease in energy use per capital and energy inten-
sity, there is much more we can do, as iContact currently exhibits
a number of weaknesses in energy management in our new facil-
ity. In terms of behavior: Office, conference room and desk lights
are routinely left on all day and night and computer monitors are
left on overnight. In terms of facilities: Uneven heating and cooling
in the building has led employees to regularly adjust their thermo-
stats and we lack valuable infrastructure such as lighting sensors.
In 2011, we anticipate changes to our lease and facility
that will help us reduce our energy consumption. Rather than
pay based on a percentage of our building, our landlord has
signaled a willingness to allow us to assume full responsibility
for our energy consumption. Thus, we plan on sub-metering
our two floors separately from the other companies in our
building, tracking our energy consumption closely and even
using a web-based platform to display our energy usage on
company monitors throughout the office. We also anticipate
investing in lighting sensors in our offices, conference rooms
and common spaces.
With these contractual and infrastructure changes, along with
campaigns to encourage behavioral changes, we aim to flatline
our total energy usage in 2011 at 2010 levels.
We will continue to monitor our water consumption to understand
the source of our elevated water usage and seek to reduce it.
MATeriAls And reCyClinG
While iContact’s business model does not require any direct input
materials, we believe it is important to track indirect materials
that contribute to our operational footprint.
Paper In 2010, iContact began tracking our consumption of
paper, which we use for internal operations and external direct
mailings. In Q1, we used approximately five cartons of paper per
month for our regular operations, or about 25,000 sheets of
E N V I R O N M E N T C o n t i n u e d
2010 iContact Water Use
900
800
700
600
500
400
300
200
100
0
3
2
1
Ft3
Full-Time Employees
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Water (indoors) Ft3
Ft3 by Employees(indoors)
Average Monthly Water Use
3500
3000
2500
2000
1500
1000
500
Ft3
250
200
150
100
50
Employees
2009
Ful Full-Time Employees
Tot Ft3
Total Average Ft3 per Month
2008 2010
8.5”x11” office paper. Even though we are growing as a company,
we managed to reduce our average cartons per month to 4.1 for
the remainder of the year, a reduction of 4,500 sheets of paper
per month over Q1. Our total usage was approximately 260,000
sheets of paper, or an average of 1,232 sheets per employee.
All of this paper was 100% FSC certified.
At the same time, our Marketing Department sent out about
20,000 direct mail pieces per quarter, or approximately 6,700
6”x11” postcards per month. These mailings were produced
externally using non-recycled, non-FSC cardstock. Thus, on a
volume basis, about 75% of the printed paper consumed by
iContact was FSC certified.
In Q3, we made a shift to a local and environmentally sustain-
able print shop that uses recycled content, post-consumer waste,
FSC certified paper and low-impact inks for all of our direct mail,
bringing our percentage of environmentally responsible printed
paper close to 100%.
Kitchen and Bathroom iContact already procured environmen-
tally friendly kitchen materials, and in Q2 of 2010, we switched to
environmentally friendly janitorial supplies, soaps and paper towels.
In Q3, we issued each employee a stainless steel spork as an initia-
tive to reduce waste from disposable flatware. In December 2010,
iContact purchased reusable plates to replace our current disposable
plates, which should reduce our waste and expenditures.
Customer Engagement In a special project, we partnered with
Verus Carbon Neutral to promote carbon neutral holiday e-cards
among our customer base. Instead of paying for physical cards,
we encouraged businesses to use their money to support sustain-
able forestry projects. For the limited physical cards we sent to
a select set of our own customers, we used 100% recycled paper
and fully offset the CO2 from materials and shipping.
wAsTe And reCyClinG
When we moved into our new facility, the options for recycling
were virtually nonexistent. Most waste was collected in bins under
individual desks, and as a result there was a lot of commingling
of recyclable materials and landfill waste. Therefore, we decided
to invest in a new dual-stream process with bins readily and
easily accessible to all employees throughout the office. Moreover,
we launched a campaign in late December for employees to
voluntarily give up the trash cans under their desks and move to
a fully centralized collection system. By the end of the year,
10% of all employees had turned in their trash cans. Additionally,
we invested in an industrial scale, and worked with our recycling
and waste collection vendors to begin regularly weighing our
recyclables and landfill waste.
OutsourcedServers
BusinessTravel
BuildingElectricity
EmployeeCommuting
TOTAL
2009 vs 2010 CO2 Emissions by Type (metric tons)
1200
1000
800
600
400
200
0
2010
2009
Per Capita CO2 Emissions (metric tons)
8
6
4
2
2009 2010
i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t
2928
wHAT we’re wOrkinG On
We have made good progress tracking our paper, kitchen and
bathroom materials, and in 2011 we plan to evaluate all of the
goods that we procure. By better understanding the nature of
everything we purchase, we can shift our consumption toward
100% environmentally sustainable materials for our operations.
In terms of waste and recycling, our goals for 2011 are to:
n Reduce paper consumption by 10% on a per person basis
n Collect 75% of all individual trash cans
n Set goals to increase our recycling rates and decrease
our landfill waste production (once we have a baseline
understanding of the composition of our waste stream)
n Host a Dumpster Dive to help employees better understand
what can be recycled and what cannot
CArBOn FOOTPrinT
Indirect Greenhouse Gas Emissions While iContact produces no
Scope 1, or direct emissions, we produce various types of indirect
Scope 2 and 3 emissions. The intermediate energy consumed at
our headquarters in the form of electricity results in Scope 2 emis-
sions, while the energy required to power outsourced servers, along
with our business travel and commuting, result in Scope 3 emissions.
To calculate our emissions, we use the methodology of the
Greenhouse Gas Protocol Initiative:
n Our Scope 2 CO2 emissions from purchased electricity were
471 metric tons in 2010, as compared to 448 in 2009.
n Scope 3 CO2 emissions stemming from our hosted servers
totaled approximately 90 metric tons of CO2 emissions
in both 2009 and 2010.15
Other Indirect GHG Emissions: Air Travel and Commuting While we updated our travel policy in 2010 and anticipated a
reduction in air travel for business purposes, iContact employees
actually increased air travel for business purposes by 8.0% to
575,666 miles. The total number of flights increased from 208
to 235, while flights per capita decreased from 1.2 to 1.1. Using
tools of the Greenhouse Gas Protocol Initiative, we estimate that
the total CO2 emissions resulting from iContact travel in 2010 was
87 metric tons, up from 79 in 2009.
From 2009 to 2010, iContact employees increased commuting
miles by 18.9% to 1,353,739 miles per year to work. This was
primarily the result of hiring a net of 62 new employees in 2010 –
a 34% increase – although the move to Morrisville reduced our
average one-way commute from 14.3 miles to 11.7 miles. Using
default emissions factors and making assumptions about the vehi-
cles that iContact employees drive,16 we estimate that iContact
employee commuting produced 530 metric tons of CO2 in 2010.
In an effort to minimize our impact from commuting, we initiated
a voluntary carpooling program. Since our first attempt to connect
potential carpoolers through an online provider was not well-
adopted, we established a low-tech solution: A physical map in our
break room allows employees to indicate where they live and seek
out colleagues who live nearby. We actively promote this initiative
and provide financial incentives for employees who participate.
OFFseTs
iContact offset 75% of our 2010 Scope 2 and 3 emissions – including
those stemming from our outsourced servers – by purchasing
carbon credits through Verus Carbon Neutral. Our credits supported
two projects:
1. The Valley Wood Carbon Sequestration project, a sustainable
forestry project based in Georgia, USA
2. Andhyodaya, an NGO that works with local farmers in Kerala,
India, to convert organic waste into cooking gas. In addition
to saving trees and preventing carbon monoxide poisoning,
this project supports girls’ education, as girls no longer have
to harvest wood and can return to school
Both of these offset projects are third-party verified and
registered with the Chicago Climate Exchange (CCX).
wHAT we’re wOrkinG On
As discussed in our Environmental Audit of 2009 Operations, we
are continually seeking ways to reduce our footprint. While our
per capita footprint decreased in 2010 and we offset 75% of our
remaining CO2 emissions through the purchase of carbon credits,
we would like to see greater improvements in 2011.
In fact, our 2011 goal is to become the first carbon neutral email
marketing company in the world. This will come by reducing our 2011
CO2 emissions to below 2010 levels and offsetting what remains. We
aim to achieve reductions primarily by meeting our goals for cutting
back the amount of purchased electricity we consume, but we will
also strive to reduce business travel and commuter miles by enforc-
ing existing policy and providing additional incentives for carpooling.
E N V I R O N M E N T C o n t i n u e d
15 We were unable to obtain an updated reading, but our hosted server capacity has remained relatively stable
16 We assume the average iContact employee drives a 2001 passenger vehicle
eCOnOMiC PerFOrMAnCe
iContact experienced 35% top line growth in 2010 with year-end
revenues of $38.6 million. This revenue growth was driven in
part by an increase in the number of customers we serve and by
attracting more medium-size businesses to iContact.
inVesTOrs
Venture funding has allowed us to invest in people, equipment
and facilities, which has led to top-line growth for the company.
As noted in the history section, iContact has received four rounds
of funding as follows:
May 2006 iContact raises $500,000 in funding from Idea
Fund Partners
June 2007 iContact raises $5.3 million from Updata Partners
October 2008 iContact raises $5 million in venture debt from
North Atlantic Capital
August 2010 iContact raises $40 million in venture capital
from JMI
Each partner was selected based on an understanding of
iContact’s business model and their willingness to engage with
iContact’s management team. We have been lucky to find not
only funding, but real partnerships committed to the success of
our company. Our investors have offered resources and advice
in order to take iContact to the next level. We are hopeful that
with our latest round of funding from JMI, we can substantially
grow the company and achieve our long-term vision.
suPPly CHAin
In 2010, iContact wrote and implemented our first supplier policy,
the goal of which is “to integrate our commitment to social and
environmental responsibility into our procurement practices by
applying a set of best practice guidelines to purchasing decisions.”
Under this policy, employees are encouraged to seek out and
assign priority to companies that are local and independent;
meet certain standards of social and environmental responsibility/
sustainability and exhibit ownership diversity. Each of these cate-
gories is clearly defined and communicated to all departments.
E C O N O M Y
Co-founders aaron Houghton and ryan allis celebrate iContact’s series b VentureCapital raise with the senior leadership, Finance and administration teams.
i C o n t a C t 2 0 1 0 C o r p o r a t e r e s p o n s i b i l i t y r e p o r t
3130
In order to evaluate our performance, we audit our list of
significant suppliers17 at least once per year. A committee of
individuals responsible for purchasing decisions in each of our
departments meets to measure progress against our baseline
metrics, look for possible vendor substitutions, and find ways to
collaborate across departments to rationalize our supplier list
by consolidating vendor relationships.
In 2010, we had 73 significant suppliers, up from 49 in 2009.
22% were local18 and independent,19 up from 20% in 2009. 18%
were located in low-income census tracts, as compared to 22%
in 2009. While we do not have exact figures on women- and
minority-owned significant suppliers, we know anecdotally of a
number of such enterprises, both significant suppliers and
smaller accounts.
For the first time in 2010, we contacted all of our suppliers to
communicate our social and environmental mission and to inquire
about the practices of companies in our supply chain.
wHAT we’re wOrkinG On
In 2011, we are working to fill the gaps in our data of our vendors,
large and small. Our goals for 2011 are to increase our local and
independent significant suppliers to 30% and get an official count
of our women- and minority-owned vendors.
E C O N O M Y C o n t i n u e d
PriOriTies GOAls TArGeTs And ACTiViTies
Customers
Employees
Community
Environment
Economy
Measurementand Community Relations
Provide quality products andmemorable customer support
Build a fair, diverse andinclusive workplace
Attract and retain great people
Create opportunities for contin-ued development
Engage all employees in CR
Build up the communities weare located in and serve
Continuously improve our environmental footprint
Continue to grow our business
Use suppliers that demonstratesocially and environmentallyresponsible practices
Be known as a leader on community and environmentalissues among our peers
Increase Customer Satisfaction(CSAT) Scores
Increase number of customers acquired and served
Increase diversity
Increase employee satisfaction
Reduce turnover
Expand opportunities for employee development
Increase employee engagement in CR
Meet our 4-1’s goals
Community engagement around the environment
Metric tons of carbon emissions(CO2e)
Reduction of energy use relative tobaseline year (%)
Average number of sheets of paper used per employee per year
Top- and bottom-line growth
Growth in employee headcount
Increase our percentage of localand independent suppliers
Increase our percentage of women- and minority-owned and certified sustainable suppliers
Improve current certification status and seek new certifications
Be recognized as a socially and environmentally responsible company
90% CSAT
70% Customer WOW
Increase employee representation for gender and ethnic diversity
Raise job satisfaction scores to 3.9
Reduce turnover to less than 15%
Launch an education reimbursement program
Include social and environmental metrics as bonus criteria for 100% of employees and managers
Identify a point person in each departmentfor CR
Develop a recognition program specifically focused on CR
Achieve 95% employee participation in annual giving
Perform 3,600 hours of total volunteering
90% of employees will do at least 4 hoursof PTO volunteering
Give away an additional 200 4-1’s email marketing accounts (430 total)
Establish the iContact Foundation
Support community-based environmentalprojects
Keep 2011 C02 emissions at 2010 level
Go carbon neutral through reduction and offsets
Reduce sheets per employee by 10% over 2010 to 1,109 sheets
Grow revenues and our team
30% of significant suppliers local and independent
Get official count of our women- and minority-owned and certified sustainable suppliers
Score an 89 on the B Impact Rating
Receive the Green America Seal of Approval
Achieve Green Plus certification
Increase the percentage of customerswho are aware of our 4-1’s andenvironmental initiatives to 25%
2 0 1 1 P R I O R I T I E S
2010 iContact Business Performance(in millions)
4
3
2
1
70,000
65,000
60,000
55,000
Revenue
Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
Customers
iContact Venture Funding(in millions)
50
40
30
20
10
XXXX XXXXXXXX XXXX
50K 5m5 3m 40m
Idea Fund Partners
Updata Partners
North Atlantic Capital
JMI
17 Those suppliers that collectively make up 80% of our purchasing
18 Within 100 miles
19 Independent suppliers are those that are privately held and are not a subsidiary or division of another company
3332
Our composite B Rating as of Dec 31, 2010, was 85. Certified: June 2010
B RATING SUMMARY Points Earned % Points Value
Accountability ★★★★★ 12.1 81%
Governance 6.1 77%
Transparency 6.0 86%
Employees ★★★★ 39.4 66%
Compensation & Benefits 24.6 68%
Employee Ownership 6.8 56%
Work Environment 8.0 67%
Consumers 1.5 4%
Beneficial Products or Services 0.9 2%
Beneficial Business Model 0.6
Community ★★ 22.6 50%
Suppliers 3.8 75%
Local 7.9 57%
Diversity 1.2 9%
Charity / Service 9.7 75%
Environment ★★★ 12.3 62%
Facilities 9.3 66%
Energy Usage 3.0 50%
Greater than 60% indicates an area of excellence.
G L O B A L R E P O R T I N G I N I T I A T I V E ( G R I ) I N D E X
Disclosure Number G3 Indicator Page
eCOnOMiC PerFOrMAnCe indiCATOrs
Aspect: Market Presence
EC1 Direct economic value generated and distributed, including revenues, operating costs, 16-17, 30
employee compensation, donations and other community investments, retained earnings,
and payments to capital providers and governments
EC6 Policy, practices, and proportion of spending on locally based suppliers 29-30
at significant locations of operation
enVirOnMenTAl PerFOrMAnCe indiCATOrs
Aspect: Materials
EN1 Materials used by weight or volume 26-27
EN2 Percentage of materials used that are recycled input materials 27
Aspect: Energy
EN4 Indirect energy consumption by primary source 24-25
EN5 Energy saved due to conservation and efficiency improvements 24-25
EN7 Initiatives to reduce indirect energy consumption and reductions achieved 24-25
Aspect: Water
EN8 Total water withdrawal by source 25-26
Aspect: Emissions, Effluents, and Waste
EN16 Total direct and indirect greenhouse gas emissions by weight 28
EN17 Other relevant indirect greenhouse gas emissions by weight 28
EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved 28
Aspect: Products and Services
EN26 Initiatives to mitigate environmental impacts of products and services, 28
and extent of impact mitigation
Aspect: Transport
EN29 Significant environmental impacts of transporting products and other goods and materials 28used for the organization’s operations and transporting members of the workforce
sOCiAl PerFOrMAnCe indiCATOrs
Aspect: Employment
LA1 Total workforce by employment type, employment contract, and region, broken down by gender 21
LA2 Total number and rate of new employee hires and employee turnover
by age group, gender and region 21
LA3 Benefits provided to full-time employees that are not provided to temporary
or part-time employees, by significant locations of operation 19
Aspect: Training and Education
LA11 Programs for skills management and lifelong learning that support the continued 19
employability of employees and assist them in managing career endings
Aspect: Diversity and Equal Opportunity
LA13 Composition of governance bodies and breakdown of employees per employee category
according to gender, age group, minority group membership and other indicators of diversity 21