edelman csr & sustainability 2007 csr summit. corporate responsibility and sustainability...

Edelman CSR & Sustainability

2007 CSR Summit

2Corporate Responsibility and Sustainability Communications

About Edelman


Relevant Experience

BUSINESS NGOS & ASSOCIATIONS


Powerful Partnerships


Terms, Concepts and Values


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


“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


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


Three Consistent Themes Emerge

3. Interacting with Stakeholders

1. Improving Business Practices

2. Exceeding Standards


Our Research


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


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


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.


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


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


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


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


On-line & Off-line: Two Separate Conversations


Implications for Companies & Communicators


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?


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?


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

edelman csr & sustainability 2007 csr summit. corporate responsibility and sustainability...

Documents

greencorporate responsibility

valuescorporate responsibility

edelman csr sustainability

business skills

business management

area of business

csr asiaoperating

environmental concerns