CSR Communications Strategy

MBA 292C-12.21.07Professor Kellie A. McElhaney

CSR Communication at its Finest

http://www.pedigree.com/dogadoption/commercial.asp

Strategic fit with business, brand, competencies

Deep partnership with expert organization

Education and awareness included as part of campaign

Consider This

You cannot not communicate If you do not communicate your CSR, you cannot

leverage maximum business benefits (consumers, employees, partners, investors, new markets, etc.)

If you do not manage your CSR communications strategy, someone else will

There are risks, as with every communications strategy

But there are worse things for which to be criticized (than trying to do good)

Communicate more broadly than to only consumers

Why Communicate? Mind the Gap

Perception v. Reality

Capitalize on CSR as Reputation Driver

EmotionalAppeal

FinancialPerformance

WorkplaceEnvironment

Products &Services

Vision &Leadership

SocialResponsibility

ReputationReputationQuotientQuotientSMSM

(RQ)(RQ)

Feel Good AboutAdmire and RespectTrust

Market OpportunitiesExcellent LeadershipClear Vision for the Future

Rewards Employees FairlyGood Place to WorkGood Employees

Outperforms CompetitorsRecord of Profitability Low Risk InvestmentGrowth Prospects

Supports Good CausesEnvironmental ResponsibilityCommunity Responsibility

High Quality Innovative Value for MoneyStands Behind

C. Fombrun, Reputation Institute, Harris Interactive

1

2

3

45

6

2%

26%

29%

12%

12%

17%

22%

33%

2%

15%

34%

12%

18%

30%

16%

13%

19%

25%

37%

29%

0% 20% 40% 60% 80% 100%

Radio

Internet

Newspapers

Television

US

Europe*

Asia**

Canada

Brazil

Source: Edelman Annual Trust Barometer, Jan 06 6

First Media Turned To for Trustworthy Information

Use Consistent Messaging on Multiple Channels

PR Beats Advertising

97% 96% 94% 93%89% 87% 86%

82%77%

72%

98%

0%

20%

40%

60%

80%

100%

Japa

nIta

ly

Germ

any

France

Canada

Brazil

U.S.

Spain UK

S. Kore

a

China

Source: Edelman Annual Trust Barometer, Jan 06

7

I believe information that I get from articles or news stories more than I believe information that I get from advertisements. (Strongly agree/somewhat agree)

10%-

4%-

1%

3%

9%

-10% -8% -6% -4% -2% 0% 2% 4% 6% 8% 10%

Television

Newspapers

Radio

Magazines

Internet

First Media Turned to for Trustworthy Information:

Changes in U.S. Since 2003Internet growing strongly at expense of TV, Newspapers

Source: Edelman Annual Trust Barometer, Jan 06 8

Move from top-down to peer-to-peer engagement Don’t forget about the power of blogs Communicate from inside out Localized approach to communications Communicate continuously and through broad array

of channels Employees, core consumers, critics such as NGOs are

best advocates/ brand ambassadors Give up control of message in favor of credibility through dialogue, viral marketing Acknowledge the tangible business impact of trust

New Approach to Communications

9

Creative Messaging Directly to Consumers?

Why Not?

CSR Communications Strategy

CompanyReputation

Mesng

Supplier Codes

Linkage toobj./ core

comps

AnnualReport

CSRReport

PR Mesng

Employee Comm

In-StoreMesng

POS Mesng

Core ProdBranding

EmploytMesng

IntegratedComm

Strategy

Communication Trends Select consumer segments ready Reporting does not equal communication POS communication Blogs increasing in effectiveness Simple messages, language Use

employees as ambassadors Integrate to brand, all company

messaging