MBA 2923.4.09

Professor McElhaney

Deloitte Survey /White Paper Highlight the Growing Role of the Board in CSR and Climate Change 220 directors at U.S. companies with $1 billion or more in

revenue

79% have a strong or moderate understanding of the business risks associated with CSR and climate change

76% have a strong or moderate understanding of the business opportunities associated with CSR and climate change

50% think their boards and management are committed to addressing CSR and climate change

50% think their companies’ response to CR&S is integrated into business strategy and risk management

41 % report no such integration

March 9   Guest speaker: Biz Stone, Twitter co-founder: Power of Social Technology

March 11          Corporate Green & CSR Strategy Analyses Due March 16         Guest speaker: Mark Heintz, HP: Community/stakeholder

Engagement March 18           Mid semester project presentations March 23-27      Spring break March 30           Limitations of CSR April 1               Guest speaker: Michael Kobori, Levi Strauss & CO: Opportunities

in Supply Chains April 6              CSR, change management, and organizational structure April 8               Social Intrapreneurship April 13             Guest speaker: Matt Kistler, Wal-Mart: CSR & Leadership April 15             CSR and Innovation April 20             DeBeers Case April 22             Practice presentations April 27             Final presentations April 29             Final presentations May 4               Final presentations May 6              Final presentations May 11 CSR Elevator Pitch, PSRs, Wrap Up

Key Learnings?

Missing Pieces?

1. Know Thyself2. Get a Good Fit3. Be Consistent4. Simplify5. Work from the Inside Out6. Know Your Customer7. Tell Your Story

Pedigree: Enhances Brand

Sign in Dreyer’s Ice Cream Scoop Shop, Berkeley, CA

Hartman, 2009

Doing the right thingfor the Greater Good.

Purchases, non-purchases,voting & volunteerism.

Journey that begins with attitude change, then behavioral changes.

Consumers must first be concerned that something they value (condition of environment, economy, ethical treatment of others) is at risk

More recently, sense of hope for the future and a desire to do and feel good more inspiring

In me,On me,

Or around me (or my kids).

Highest Product Categories: 1. Food & beverages2. Personal Care 3. Household Cleaners

-Shaping the New Rules of Competition, UN Global Compact Participant Mirror,

GS Sustain, Highlights from the BBMG Consumer Report

Females (employees, consumers, investors)

Millennials/Gen Y’ers Ages 8-24 (cause focus)

LOHAS/ Ethical Consumers

More educated

More diverse (gender, sexual orientation, ethnicity)

More affluent (enter Walmart)

Want to be engaged, want to perform quick action

Knowing your Consumers

Source: Co-Operative Bank, 2006 Ethical Consumerism Report

More likely to buy from companies that:

Manufacture energy efficient products (90%)Promote health & safety benefits (88%)Support fair labor & trade practices (88%)Commit to enviro-friendly practices (87%)

Source: MORI 2008

89% said they are likely to switch brands if linked to cause

83% will trust company more if socially responsible 79% want to work for company that case about and

contributes to society 78% believe that companies have responsibility for

making a difference in the world 74% more likely to pay attention to a company’s

overall messaging when they see that company has deep commitment to cause they care about

69% consider companies’ CSR reputation when deciding where to shop

61% feel personally responsible for making a difference in the world

56% would refuse to work for an irresponsible corporation Source: 2006 Cone Millennial Cause Study

WOMEN more likely than men to:

Volunteer in their local communities

Investigate a company’s environmental/ social reputation before making a purchase

Invest in companies screened for different criteria including environmental practices, the hiring and promotion of women and minorities, labor practices and tobacco manufacture

Factor CSR when job-searching

Purchase a product with a percentage of profit earmarked for charitable donation

Participate in company sponsored social programs

More likely than men to:

Indicate that it is important to ensure that workers inside and outside the U.S. are paid a living wage (68 percent versus 57 percent).

Give corporations a “poor” rating for current CSR performance (18 percent versus 11 percent of men). Men are far more likely than women to rate companies as “excellent” or “good” (31 percent versus 13 percent, respectively).

Indicate that it is extremely important for companies to make relevant donations to charities and philanthropies (27 percent versus 19 percent, respectively).

Source: Fleishman Hillard – National Consumers League Study, “Rethinking Corporate Social Responsibility,” 2006

Women make over 80% of purchasing decisions in the United States (and influence most others)

Women are less likely to act impulsively on brand loyalty, and are more likely to do research and weigh information before making purchases

Source: Faith Popcorn and Lys Marigold, 2000

March 2008, Goldman Sachs launched new initiative

Will provide 10,000 women in developing countries and emerging markets with educational opportunities in business &

management

Partnership with American & European universities

Will contribute $100 million over five years, plus time & effort of employees

Cannot be a stand-alone branding strategy

Has to mirror current (or new) branding attributes

Has to be combined, and linked to, price, quality, convenience

Has to be linked to “Good for You” [consumer] first, then can expand to rivers, labor, climate

Will not be effective unless communicated, throughout marcomm channels, and at POS