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Organizational Models forIntegrating CSR With Brands
Carol Holding, Holding Associates
Dr. Lucille Pilling, Professor ofCSR, New York University
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WHY IT’S IMPORTANT…WHY ITS SO TOUGH TO DO
Introduction to Brand/CSR Integration
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“Those companies
that have been moresuccessful (with CSR)are those that have
been able to link itwith brand building…
— Kara Hartnett Hurst, Managing
Director, BSR
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Management
recognizes the
importance of
CSR/Brand
integration.
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• …I need more data”
• …here are 15 reports that might have the answer.”
• …I don’t have the time.”
OR
• Attack
• Confusion (even after explaining multiple times)
• Passivity/silence
• Intellectualizing
• Moralizing (They should…)
• Excessive concern about methodology• Flight into health (The cold weather indicates that
global warming is not so bad…)
“This is really important, but…”
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Page 9Change Drivers
• Consumers
• Employees
• Investors
• BusinessPartners
• NGOs
• Community &Government
90% of U.S. consumers would switch to a differentcompany to punish bad corporate behavior1
89% of those familiar with their companies’ causeprograms feel a strong sense of loyalty to theiremployers..2
Socially responsible investment funds now attractabout one dollar out of every nine invested
Half of businesses are being forced to adopt ethicallabor or procurement standards by their partners 4
Company revenues and assets impacted byexamination and action by organized interest groups
Company positioning, profitability and assetsimpacted by social perceptions and resultingregulation
1Sharing The Wealth, CECP 2008),” K. Fraser, 2007; 2 2007Cone Cause Evolution Survey
;
3 Interfaith Center for Corporate Responsibility www.iccr.org/ethvest.php , IBM CSR Study 2008
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Page 11Six Models for CSR/Brand
Integration• Three Non-adaptable Models
• Mission-Driven,• Product-Driven Consumer Companies
• Super-Regulated Industries
• Three Adaptable Models
• Individual Champion
• Communications Team• Organic Partnerships
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Page 12Three Non-Adaptable Models
• Mission-driven – Green Mountain Coffee Roasters
• Product-Driven ConsumerCompanies
– PepsiCo • Super-regulated Industries
– (Pharmaceuticals)
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Page 13Three Adaptable Models
• Individual Champion• Symantec
• Communications Team• Henry Schein, Inc., Adobe, Bankrate
• Organic Partnerships• HSBC, Chevron, Hess, Cherokee
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Page 14Adaptable Model Characteristics
– CSR is a long-standing focus
– CEO and the board support the CSR efforts
– Social versus environment or governance arethe most branded CSR efforts
– Both internal and external communication
focus on CSR efforts – At first, the CSR report is not the primary task
of the integrator but happens shortly after
– Brand/CSR integration efforts are measured in existing internal and external brand surveys
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Page 15Individual Champion Model at
Symantec
Individual Champion Model at
Symantec
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Page 16Communications Team Model at
Henry Schein
Communications Team Model at
Henry Schein
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Page 17Organic Partnerships Model at
HSBC
Organic Partnerships Model at
HSBC
T i l O i ti l E l ti
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Page 18Typical Organizational Evolution
of the CSR/Brand Relationship• The Individual Champion is the model common to early
stage brand/CSR integration• Within 10 years companies evolved to Communications
Team Model.
• The Organic Partnerships Model works well in the old-line companies.
• The full integration of Brand and CSR to an embedded
business strategy evolves over time.
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HOW TO MAKEIMPLEMENTATION WORK INYOUR ORGANIZATION
Process tools for integrating Brand with CSR
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Fi t St
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Page 20First Steps
• Audit current departmental CSR programsand publicize current efforts
• Analyze competitors
• Survey stakeholders’ expectations
• Select compliance metrics, ie Global Reporting
Initiative (GRI), UN Global Compact, Ceres
• ID key internal stakeholders
• Engage senior management• Establish working committees
• Legitimize > support > institutionalize
L O Y A l
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Page 21Lean On Your Angels
• Internal enthusiasm spreads to externalaudiences organically as well as throughsystematic communications.
• Brand involvement is great motivation forother parts of the company to engage in
cross-functional partnerships, yielding morestories for communications.
The Roadmap
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Stage 0Compliant
Stage 1Engaged
Stage 2Innovative
Stage 3Integrated
Stage 4Transforming
CitizenshipConcept
Jobs, profits,and taxes
Philanthropy,environmentalprotection
Responsible tostakeholders
Sustainability ortriple bottomline
Changethe game
StrategicIntent
Legalcompliance
Reputation Business case Valueproposition
Market creationor social change
Leadership Lip service,out of touch
Supporter, in theloop
Steward, on topof it
Champion, infront of it
Visionary, aheadof the pack
Structure Marginal, staff
driven
Functional
ownership
Cross-functional
coordination
Organizational
alignment
Mainstream,
business drivenIssuesManagement
Defensive Reactive, policies Responsive,programs
Proactive,systems
Defining
StakeholderRelationships
Unilateral Interactive Mutual influence Partnership Multi-organizationalliances
Transparency Flank protection Public relations Public reporting Assurance Full exposure
Boston College Center for Corporate Citizenship
The Roadmap
Tactics for
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Page 23Tactics for
Internal Communications1. Deliver CSR focused brand training at departmentmeetings
2. Build a resource of CSR stories3. Celebrate CSR successes - push information via
intranet, email, newsletters, live events, blogs,
webcasts4. Keep managers informed and involved
5. Use CEO announcements and awards
6. Involve/promote internal networks
7. Track and report measurements of brand, CSR, SRIetc and share results with departments
External Communications
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Page 24External Communications
• Publicize improvements in compliance metrics – Identify relevant metrics by industry, region, social,
environment, governance focus
• Develop PR strategy around key focus areas thatmobilize public opinion
• Combine news event with applicable CSR
• Apply for awards or ‘best-of’ lists• Coordinate partnership opportunities
• Develop best practice sharing with industry peers and
leaders• Use every opportunity to communicate – signage,
packaging
P 25Sample Metrics
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Page 25Sample Metrics
• Brand Value – brand valuation companyOverall impact of effort on brand
• Reputation study/corporate citizenship
• SRI Ratings
Impact on independent CSR ratings, ie,RiskMetrics (KLD, Innovest), Bloomberg,Thomson Reuters
• Dow Jones Sustainability Index, othermeasures of CSR
• Employee survey
Page 26Desired Outcomes
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Page 26Desired Outcomes
By integrating brand with CSR
• Employees becomeevangelists.
• Talent is better retained.
• Executives and boardbecome vested.
• Generate increased interestfrom consumers, customers,investors.
Page 27The CSR/Brand Value Curve
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12/11/09
The CSR/Brand Value Curve
Values-based
SelfRegulation
Incorporatesthe company'svalue systemand/or code of
conduct toguidebusinessbehavior
GrowthPlatform
Access to nemarkets, newpartnerships o
product/servicinnovationsthat generaterevenue
Legal andCompliance
Adherence to
law in thecountries ofproduction,operation and
distribution
Efficiency
Measurablecost savingsthroughefficient or win-win scenarios
StrategicPhilanthropy
Alignment ofcharitable
activities withsocial issuesthat supportbusiness
objectives
A shift from cost to returns**IBM Global Business Services
Page 28How Mature is Your CSR Program?
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Page 28How Mature is Your CSR Program?
Level of Sustainability Maturity
N u m b e r o f C o m p a n i e s
Stage 4
Competitive
Advantagethrough
Sustainable
Business
Practices
Top 1% ofCompanies
Stage 3
Comprehensive
SustainabilityManagement
Stage 2
Beyond
Compliance
Stage 1
Understanding
Top 1-5% ofCompaniesMiddle 5-20%of Companies
Bottom 20-100%of Companies
InnovatorFollower Mature Leader
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What We Hope You Take Away
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gWhat We Hope You Take Away
Organizational models that successfullyintegrate brand and CSR..
How to select a model that is best suitedfor your organization.
How to time the stages of brand CSR inintegration as it evolves to an integral partof business strategy.
A step by step process to integrate brandand CSR.
Page 30Speakers Contact Information
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Speakers Contact Information
Dr. Lucille Pilling
New York [email protected]
Carol Holding, President, Holding [email protected]
415-559-2586