edelman csr & sustainability 2007 csr summit. corporate responsibility and sustainability...
TRANSCRIPT
Edelman CSR & Sustainability
2007 CSR Summit
2Corporate Responsibility and Sustainability Communications
About Edelman
3Corporate Responsibility and Sustainability Communications
Relevant Experience
BUSINESS NGOS & ASSOCIATIONS
4Corporate Responsibility and Sustainability Communications
Powerful Partnerships
5Corporate Responsibility and Sustainability Communications
Terms, Concepts and Values
6Corporate Responsibility and Sustainability Communications
Many Terms
Corporate Responsibili
ty
Corporate Social
Responsibility
Sustainability
Sustainable
Value
Sustainable Development
Citizenship
Soul
Making a Difference
Social & Environment
al Responsibilit
y
Sustainability
Corporate Social
Responsibility
Green is Green
7Corporate Responsibility and Sustainability Communications
“A concept whereby companies voluntarily integrate social and environmental concerns in their business and the way they interact with stakeholders. This implies going over and above legal requirements, integrating economic, social and environmental concerns in their business, and adopting new approaches to business management.”
– European Environment Agency (EU)
“A company's commitment to operating in an economically, socially and environmentally sustainable manner whilst balancing the interests of diverse stakeholders.”
– CSR Asia
“Operating a business in a manner that meets or exceeds the ethical, legal, commercial and public expectations that society has of business. Social Responsibility is a guiding principle for every decision made and in every area of business.”
– Business for Social Responsibility (USA)
A Range of Regional Definitions
8Corporate Responsibility and Sustainability Communications
Compliance
Exceeding Expectations
Risk management & new operating efficiencies
Increase transparency, measure performance
Affirm company’s social license to
operate
Driver Activities Outcomes
Sustainability of human populations and global
ecosystems
Develop new paradigms for least developed markets
Long-term market & shareholder value
growth
Conduct of clients, subcontractors,
suppliers, other partners
Raise standards and innovateacross industry
Enlist external allies, enhance industry
standing
Legacy violations and futureliabilities
Comply with
relevant laws
Avoid costlypenalties and fines
Community and employee expectations
Participate in active volunteerism and
philanthropy
Employeemorale & good
neighbor
A Spectrum of Aspirational Definitions
9Corporate Responsibility and Sustainability Communications
Three Consistent Themes Emerge
3. Interacting with Stakeholders
1. Improving Business Practices
2. Exceeding Standards
10Corporate Responsibility and Sustainability Communications
Our Research
11Corporate Responsibility and Sustainability Communications
Who We Spoke To
Global Survey: Opinion Leaders
Geographies:
• 400 people in the U.S.
• 300 in China
• 150 each in Brazil, Canada, France, Germany, India, Ireland, Italy, Japan, Mexico, the Netherlands, Poland, Russia, South Korea, Spain, Sweden, and the United Kingdom
Demographic profile:
• College-educated
• 35 to 64 years of age
• Report a household income in the top quintile of their country
• Report a significant interest in and engagement with the media, and economic and policy affairs
Global Survey:Prospective Talent/
Recruits
• 778 Net Impact members from around the world
Demographic profile:
• College-educated
• 44% have or are pursuing advanced degrees
• 87% currently reside in U.S.
• 13% reside in Europe (61 respondents), Asia (27 respondents), Central or South America (17 respondents), Africa (8 respondents) and Australia (3 respondents)
• 82.4% report that they are currently highly-moderately applying business skills to create a better world
In-Depth Interviews:Corporations, NGOs,
Media, SRIs
• Executives from global Fortune 500 companies in a variety of functions, including public affairs, corporate responsibility, government relations, communications
• Senior executives at global NGOs, focused on environmental, human rights, social and development issues
• Journalists who cover business, the environment or CR /sustainability for global, top-tier English-language media
• Analysts from socially responsible investment (SRI) funds
12Corporate Responsibility and Sustainability Communications
From Technical Issues to Leadership Behaviors
“The environment is now being seen increasingly as a potential value-add, not merely a cost to be minimized. Hence, green leaders are emerging throughout companies, not just in the environmental departments.”
- Joel Makower
CR must be a corporate priority emanating from the top
13Corporate Responsibility and Sustainability Communications
From “Do No Harm” to… “Do Good”
Companies are expected to lead – not just manage risk – on key global issues
In 2007, Ceres Environmental Defense and SRI investors managing $1.5 trillion in assets petitioned the S.E.C to require companies to disclose the risks that climate change may pose to their bottom lines.
14Corporate Responsibility and Sustainability Communications
To Be Trusted, Tell the Truth
“Balance is the key word. If the executive summary (of a CR/sustainability report) is 100% positive, I worry and put a filter on when viewing the report. If it is all good news, then they do not understand the evolving nature of CR.”
- NGO Executive, Survey Respondent
Transparency and treatment of employees
are most watched CR behaviors
Social Responsibility Priorities are Employees & Transparency
15Corporate Responsibility and Sustainability Communications
To Be Trusted, Tell the Truth
Transparency: We Know It When We See It
“The 2005 and 2006 GE citizenship reports [stated] ‘GE is not involved in any way in land mine or cluster bomb production and does not make these devices, nor sell parts or components for use in production of these devices.’ However, a recently acquired business unit is presently supplying a sensor for use by a U.S. manufacturer of a next-generation cluster weapon…GE has taken a number of corrective actions.”
– General Electric, GE website, Continuous Improvement
“In May 2004, Chiquita… voluntarily disclosed to the U.S. Department of Justice …that the company’s banana producing subsidiary in Colombia had been forced to make protection payments to certain groups in that country. The company’s sole reason for submitting to these payment demands was to protect employees from the risks to their safety if the payments were not made.”
– Chiquita, 2004 Annual Report, CSR Section
“The panel further found that, by concentrating on improving personal safety statistics, the group had developed a false sense of confidence in its safety culture. In essence, the panel concluded that BP had fallen short in its approach to process safety at its five US refineries. It made a number of recommendations, all of which we have considered and will implement.”
– BP, Chairman’s Letter, Annual Review 2006
16Corporate Responsibility and Sustainability Communications
CR influencers, stakeholders complain that communicating
with companies is often difficult
Stakeholders Still Frustrated with Engagement
Annual CR report content most valued by NGOs:
• Accurate appraisals of sector issues
• Clear delineation of the company’s position on key issues – and above all, delineation of a company’s entire footprint
• Stakeholder input
• Accurate assessment of progress to date (including failure to meet targets)
• Work plan for improvement with clear targets, including timelines
17Corporate Responsibility and Sustainability Communications
Companies often neglect providing CR information to
prospective employees
Prospective Employees Hungry for Info – Often Go Unfed
• When given the choice between a socially responsible employer and one that’s not, more than half of respondents said they would take a pay cut (10-15%), to work for a socially responsible organization
• 60% said they would be “very likely” to leave their current job to work for a greater corporate responsibility leader
• 86% said they would quit their job if their company was guilty of unethical labor practices
• 46% of respondents said, “poor environmental performance” would be grounds for quitting
“Corporate Responsibility efforts have absolutely had a positive effect on recruitment. Candidates are asking about citizenship…Everything that goes into citizenship is an important piece of who our company is.”
- Jules Andres, Senior Manager Corporate Communications,
Mattel
18Corporate Responsibility and Sustainability Communications
On-line & Off-line: Two Separate Conversations
19Corporate Responsibility and Sustainability Communications
Implications for Companies & Communicators
20Corporate Responsibility and Sustainability Communications
Bring the media “news,” not press releases
“They’re absolutely pointless [companies’ communication about CR]…The company is the least credible source of information…[the CR report] is the last place you go.”
- Financial Times reporter
Communicate Across Multiple Channels - Simultaneously
Outlets people use to obtain information about companies’ CSR activities*:
• 68.1% mainstream media• 57.3% corporate websites• 54.6% NGOs or nonprofits• 52.3% Corporate Responsibility/ Sustainability reports
*Respondents were asked to select the most applicable answers
What To Do?
21Corporate Responsibility and Sustainability Communications
The majority of employees, 56.5%, would prefer to learn about their company’s CR activities through leadership messages than from any other source
62% of respondents reported that recruitment presentations and/or materials failed to emphasize CR, and 69% reported that
they have asked about CR practices in interviews
Communicate Often, Communicate to Everyone and Communicate from the Top
What To Do?
22Corporate Responsibility and Sustainability Communications
Beyond “Just Communications”
• Quantify the “opportunity,” not just the risk – what’s the business opportunity at Bottom of the Pyramid (BOTP)?
• Evangelize to mainstream investors
• Don’t just discourage irresponsible employee behavior – incentivize sustainable behavior
• De-couple CR/sustainability factors: the business case for cap and trade is different than for enforcing a human rights policy
Final Thoughts
Edelman CSR & Sustainability
2007 CSR Summit