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Introduction: Rethinking the Role of the Corporation   �


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→ INTRODUCTION: RETHINKING THE ROLE OF THE CORPORATION
 The corporate titans of earlier centuries would hardly recog...
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                                                ��            ��             ����...
What’s a Prosumer?
Prosumers are the most influential men and women
within any market. Empowered by new technologies
and im...
5   The Tables Have Turned
    “Big Brother is watching you.” It’s a phrase taken from George Orwell’s
    1984 and has be...
7
7




       Ethical Consumption: Survival of the Fairest
     “Can you have an impact by making none at all? Why not?”
  ...
8




    In this new context of doing business, companies          ��������� ���������� �� ������
                       ...
10
10




                A New Way to Do Business
                Business as usual, as practiced in the last century, is in...
11   Look at the most successful brands that have
     emerged in recent decades, and you’ll find a
                       ...
12      RUL E 2: TREAT E M PLOYE E S W E L L
        Inequitable treatment of employees was one of the major concerns
    ...
14   RUL E 3: P ROT E C T A N D PRO M OT E                � ���� � ������ ���������� ��� ��������
                        ...
15




     French respondents, in particular, believe           ��������� ������ ����� ������
                           ...
16




          When the samples were asked on which issues
          companies should focus their philanthropic efforts,...
17   RULE 4: THINK ABOUT THE ENVIRONMENT BEFORE,
     NOT AFTER, YOU’VE DAMAGED IT
     We’ve seen a real shift in the pas...
we face challenges
all over the world.
in Africa, it’s malaria.



                 Today, Africa’s economies are growing ...
Euro RSCG has been the AOR for Veolia
since 2006. The current corporate
campaign has won several awards,
including an Effi...
20   RUL E 5: RES PE C T
     CONS UMERS ’ PO W E R
                                           ������ ������� ������ �����...
22
22      To keep its customers and others informed,
        Stonyfield Farm has hired a former journalist to
               ...
23




     CONCLUSION: CORPORATIONS AT A CROSSROAD
     Today, corporations are at a crossroad. Companies that believe th...
“Breathe in, breathe out…With us, choosing
                                                                               ...
Know is a publication of the Euro RSCG Worldwide Knowledge Exchange, a global knowledge-sharing
initiative that leverages ...
Corporate Brand Study June 08
Corporate Brand Study June 08
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Transcript of "Corporate Brand Study June 08"

  1. 1. know ���� ���� ��������� | ��� �
  2. 2. For almost a decade Euro RSCG has been creating impactful and provocative work for EDF. The current print campaign has been cited by the APPM (News Magazine and Press Awards). Choosing a world with less CO2. Because greenhouse gases are the main cause of global warming, EDF has chosen to produce energy that generates very little CO2. To achieve this objective EDF is developing and renewing Europe’s leading nuclear power and hydroelectric production facilities and investing heavily in renewable energy. The future: it's in the choices we make every day
  3. 3. know ��� ������ �� ��� ������ ��� �� ��� | ��� � Introduction: Rethinking the Role of the Corporation � More Power, More Responsibility � A New Way to Do Business: �� Five Rules for the Corporate Brand of the Future
  4. 4. 2 → INTRODUCTION: RETHINKING THE ROLE OF THE CORPORATION The corporate titans of earlier centuries would hardly recognize the modern- day business world. Over the past century, we’ve seen corporations grow far larger, more global, and more powerful–but, at the same time, more beholden to multiple stakeholders, including the general public. Companies have moved from primarily individual or family owned to shareholder owned and board governed. Once omnipotent, chief executives now serve at the will of a committee and are subject to the scrutiny and criticisms of people both within and outside corporate walls. Profits are still at center, but they’re no longer the only goal; CEOs of publicly traded companies are under tremendous pressure to meet the needs of all stakeholders, not just shareholders. The new pressures corporations face are due in large part ripped off or endangered customers, others have taken a to a growing awareness of the impact—good or bad—these leading role in important issues of the day, including the organizations can have on local, national, and international environment and human rights. Thanks to the Internet affairs as well as on people’s everyday lives. Corporations and the democratization of media, corporations feel more have grown so large that 37 of the world’s 100 largest approachable and accountable. Ordinary citizens can find economies are now businesses rather than nations, out just about anything they want about companies online, according to Swedish economist Johan Norberg. Greater a platform that also allows consumers to “talk back” to size more often than not translates into greater power, and big business through blogs, message boards, product that’s a real issue at a time when consumer confidence in reviews, and the like. The entire relationship between corporations is at record lows. The 2007 Gallup Poll found consumers and companies is changing as people rethink that only 18 percent of respondents had a “great deal” the role corporations can and should play within local or “quite a lot” of confidence in big business. This lack of communities and society as a whole. faith should come as no surprise given the past decade’s This issue of Know explores the future of the corporate string of corporate scandals, ranging from accounting brand, with an emphasis on evolving consumer fraud and abusive working conditions to contaminated expectations and demands. It draws on findings from food and potentially lethal toys. Corporate corruption and Euro RSCG Worldwide’s 2007 Future of the Corporate malfeasance have moved beyond news headlines and Brand Study. The online survey was conducted by Market into the broader culture, thanks to a steady slate of films Probe International in three markets: the United States focused on the evils of Big Business (e.g., Lord of War, (n=700), the United Kingdom (n=700), and France (n=450). The Constant Gardener, Syriana, Michael Clayton). Prosumer breakouts are included throughout the report In this new environment, the public is more wary of to provide insights into the influence these leading-edge corporations but also has higher expectations of them. consumers are wielding among the general public and Even as some companies have duped investors and within the corporate world.
  5. 5. 3 �: ����� �: ��������� �: ����� �� �� ������ More Power, More Responsibility As the influence of corporations grows and the power of nations decreases, companies are expected to take on roles once relegated to government. This is especially the case in those areas in which government intervention has been seen as weak or ineffective. In the aftermath of Hurricane Katrina, for instance, 87 percent of Americans polled by Cone, Inc., expected corporations to play a major role in rebuilding affected areas. Nearly two-thirds (62 percent) agreed companies are better able than government agencies to respond effectively to disasters. ���������� ���� �� ���� �������������� On a broader scale, corporations are now regarded �� ����������� ��� ������� �������� ������ ������ as important facilitators of social progress. In each of the three markets surveyed, large majorities agreed businesses bear as much responsibility as government for driving social change. What once � : % % % might have been the view of a leftist fringe is now mainstream thinking. � : % % % Reducing extreme poverty around the globe is one � : % % % area in which corporate involvement is particularly expected. In 2000, the United Nations pledged in its “Millennium Declaration” to halve the proportion of the world’s people living in extreme poverty by 2015. It’s an objective that is in no way feasible without the concerted involvement of many of the world’s largest companies. It’s a huge undertaking, but one with an enormous upside for business. Multinational companies have already benefited greatly from the creation and growth of upper and middle classes in developing countries. But the real promise of globalization lies not among the people who currently consume, but among the billion or more others who have thus far been excluded from the consumption process. If this change is to take place, corporations will need to drive it.
  6. 6. What’s a Prosumer? Prosumers are the most influential men and women within any market. Empowered by new technologies and improved access to information, they have tipped the scales of power away from manufacturers and retailers, and toward themselves. They are highly knowledgeable and demanding consumers who expect their brand partners to acknowledge their value and treat them accordingly. Prosumers typically make up 15 to 25 percent of any market. Euro RSCG Worldwide has made them an ongoing focus, because, beyond their own economic impact, prosumers influence the brand choices of others. Simply put, what prosumers are doing today, mainstream consumers are likely to be doing six to 18 months from now. KEY PROSUMER TRAITS: » Embrace innovation — curious » Are marketing savvy and plugged to try new things, challenges, in to multiple media sources and experiences » Demand top-notch customer service » Keen on new technology and gadgets and access to information » Transport new attitudes, ideas, » Proactively seek to maximize control and behavior — they are “human media” over their lives through information, communication, and technology » Pursue timeless value » Constantly seek information and » Recognize their value as consumers and opinions; eager to share their views expect brand partners to do likewise and experiences with others
  7. 7. 5 The Tables Have Turned “Big Brother is watching you.” It’s a phrase taken from George Orwell’s 1984 and has been in frequent use over the last half century. Whether referring to the government or big business, the phrase has suggested ongoing surveillance–and control–of the general population by overly powerful and intrusive authority figures. Today, Orwell would likely be surprised by the extent to which the tables have turned on corporations. For all the fears of big business tracking consumer movements with digital cookies and RFID tags, the truth is that consumers are keeping equally close (if not closer) tabs on corporations. Anyone with Internet access can easily look up an annual report, track corporate movements, and contribute to conversations about what a particular company or industry is doing right or wrong. jetBlue learned the hard way how easily an angry customer armed with a video-enabled phone can spread the word about corporate transgressions or errors in judgment. Having witnessed the damage big business ������������ ���� ������ � ���� ��������� ���� �� ��� ������� can cause when left unchecked, a growing number of people feel they have a right to monitor corporate actions and take companies to task when they step out of line. A majority � : % % % of respondents in each of the three markets acknowledge corporations’ increased � : % % % cultural role and say they have become more interested in corporate conduct and brand � : % % % image over the past few years. Significant proportions, including more than half of � ���� ������ ���� ���������� �� leading-edge prosumers, had actively sought ������������� ������� ��� ����� out information about a company’s ethics in ������ ���� ��� ���� ��� ����� the few months prior to the survey. Whether protesting the treatment of chickens by KFC or denouncing Apple’s � : % % % rapid discounting of its new iPhone, ordinary people now have the wherewithal to force � : % % % corporations to respond to their complaints and demands. This puts significant power � : % % % in the hands of consumers who take the time to blog about a company, post a video ������ ��� ���� ��� ������, � ���� about poor customer service on YouTube, or �������� ������ ��� ����������� �� slam a product on a customer-review site. ��� ���������� �� ������ �� � ������� Consumers can now look beyond the glossy ads and rosy product statements, and find a very different truth. Euro RSCG’s survey shows that substantial numbers of consumers � : % % % have already changed their minds about a � : % % % potential purchase as a result of information in blogs and other online forums. The fact � : % % % that prosumers score higher on this count indicates it’s a trend likely to grow stronger. ���� ��� ���� ����, ����������� ����� �� ������ ���� �� ������ �� ���� ����� � ������� �� ������� � ��� �������� �� ��� � : % % % � : % % % � : % % %
  8. 8. 7
  9. 9. 7 Ethical Consumption: Survival of the Fairest “Can you have an impact by making none at all? Why not?” That’s more than just a tagline from Toyota’s new advertising campaign. Consumers in the developed world are more aware today of the negative consequences of capitalism and mass consumption. And they’re under increasing pressure (societal and self-imposed) to limit the damage caused by their personal consumption choices. This means making the “right” purchase decisions and also influencing the behaviors of companies hoping to obtain their business. In the United States and France, eight in 10 consumers believe they have a responsibility to censure unethical companies by avoiding their products. In all three markets, a majority have already made a purchase decision based on a company’s conduct. Once again, prosumers are taking the lead. �� � ��������, � ���� � �������������� �� � ���� ���� � �������� �������� ������� ��������� ��������� �� �������� ����� �� � ��������� ������� ����� �������� � : % % % � : % % % � : % % % � : % % % � : % % % � : % % %
  10. 10. 8 In this new context of doing business, companies ��������� ���������� �� ������ ��� ������������� �������������� have no choice but to adapt. More and more, �� � ��� ������ �� ���������� consumers are factoring issues of ethics and social and environmental responsibility into their purchase decisions—and that applies to shareholding as well as personal consumption. � : % % % Morningstar reports there are 130 socially responsible investment funds today, with � : % % % $48.8 billion in assets, up from just 39 funds with $5.4 billion in assets a decade ago. Natural � : % % % selection is beginning to favor those companies that are integrating high ethical standards into their policies and practices. ������� ������� �� � ��� ������ ��� ���� �������� How are these good intentions translating in the real world? A 2004 report prepared for Wal-Mart by McKinsey and Co., found that as many as 8 percent of Wal-Mart customers no longer shop � : % % % there because of “negative press.” The consultancy concluded the retail giant could gain 8 percent in � : % % % financial value if it were to improve its image to � : % % % the level of competitor Target. Whether directly correlated or not, Wal-Mart has since taken a leadership role in such areas as organic food, lower prescription prices, and sustainability. Among ��� ���� ���������� ��� ���������� other pledges, the company has committed to ���������� �� ��� ������ ���� �� ����� ���� �������� �������������� reducing the energy needs of its existing stores 20 percent by 2009 and its overall CO2 emissions 25 percent by 2012. Once dismissed as unaffordable and unwise, � : % % % sustainable practices are now viewed by many, if � : % % % not most, companies as a competitive advantage. And there’s a growing body of evidence to back � : % % % that up: When investment research and advisory firm Innovest back-tested a hypothetical portfolio of its Global 100 Most Sustainable Firms against the MSCI World Index from December 1999 through December 2005, it found the Global 100 outperformed the broader index by 7.11 percent. Numerous other studies corroborate that positive environmental and social performance can create financial success—increasing investor confidence, strengthening brand recognition, and boosting stock performance and competitiveness. GE’s recent ecomagination initiatives, including a pledge to double investment in clean technology by 2010, have been credited with helping to increase corporate earnings 11 percent in 2006.
  11. 11. 10
  12. 12. 10 A New Way to Do Business Business as usual, as practiced in the last century, is insufficient in today’s environment. Corporate strategies—including branding strategies—must take into account the value accrued by a reputation for social responsibility, as well as the very real disadvantages faced by those companies that fall short in this regard. Where once CSR activities were an adjunct relegated to the PR department, now they are a core component of competitive business. Whether they regard these practices as “caring capitalism” or pure self-interest, the most successful companies of tomorrow will infuse elements of social and environmental responsibility throughout their operations, from human-resources practices and customer service to supply chains, retail venues, and packaging. 5 Rules for RUL E 1: H AVE A PURPO S E �� �� ��������� ���� ��������� ����� ��� ��������� ����� ���� ������������� BEYOND P ROF I T the Corporate Consumers in the three markets Brand of surveyed have made it clear: � : % % % the Future Business can no longer be just � : % % % about profit. More than eight � : % % % in 10 respondents believe it’s important for a company to ��� ���� ��������� ���� �� � ��� �� �� �������� ������� ��� ������������ stand for something other than profitability, and only around one- third consider shareholder profits � : % % % the most important responsibility � : % % % of the CEO. � : % % %
  13. 13. 11 Look at the most successful brands that have emerged in recent decades, and you’ll find a ���������� �� �� ��������� ������ ��� ���� �������� common thread: Most of these companies have been built on a strong and clearly articulated set of beliefs and values. In the space of a decade, � : % % % Google went from a college research project to a company with a brand value estimated at � : % % % more than $17 billion, all while seeking to live by its credos of “Don’t be evil” and “Work should � : % % % be challenging, and the challenge should be fun.” Whole Foods Market has built its brand on a simple philosophy of “whole foods, whole � ������ �� �� ��������� people, whole planet”—and, in doing so, has ������ ��� ���� �������� managed to become the world’s fastest- growing retailer. Starbucks hasn’t just cornered the world coffee-experience market; it’s done so while promoting such values as Fair Trade, � : % % % a respectful work environment, diversity, and � : % % % community involvement. Three very different companies, but each � : % % % one has turned strong beliefs into a winning proposition. ������������� �� �� ��������� These companies don’t just stand out because ������ ��� ���� �������� they are values centered; they stand out because they are creating new ways of doing business—and that is something today’s consumers value. Both “innovative” and � : % % % “visionary” are qualities considered essential components of good business in each of the � : % % % markets surveyed. In fact, respondents � : % % % ranked both those factors above profitability. This makes sense at a time when consumers expect corporations to operate to the benefit of society at large and not just line the pockets of executives and shareholders. “Our communities project started out with thinking about our mission—bringing health through food to a maximum number of people—and our growing experience in developing countries where that mission is often a huge challenge. How can you bring products to a majority of people when a third or a half of the population live below the poverty line? Thinking along those lines has led us to launch successful initiatives with our Affordability Programs, putting our products and the health benefits they provide within the reach of people with very limited resources in China, Indonesia and other countries.” –CEO Franck Riboud, Danone Annual Report 2006
  14. 14. 12 RUL E 2: TREAT E M PLOYE E S W E L L Inequitable treatment of employees was one of the major concerns expressed by survey respondents, particularly in France. This reflects escalating frustration over the widening gap between executive and mid- and bottom-tier salaries. Twenty years ago, the ratio of CEO pay to average worker pay was approximately 10:1; today, it’s 282:1. In some industries, executive paychecks could be described as obscene. In 2006 alone, for example, the top 25 hedge-fund managers took home a combined $14 billion. A report in Alpha magazine noted that this was more than the gross domestic products of Jordan or Uruguay that year. Three of the managers took home in excess of $1 billion for their 52 weeks of labor. ��� ������������ �� ��� ����� ������ ������ ���� ��� ��������� � : % % % � : % % % � : % % % ��������� ������ ����� ������ �� ������� ��� ������ ��� ����� �� ��������� � : % % % � : % % % � : % % % Some values-led corporations are working to boost compensation at the lower end and constrain it at the top. Whole Foods Market caps executive salaries at 16 times the average pay of all full-time workers. The cap was originally set at eight times the average pay, but has since been increased to bolster executive retention. CEO and founder John Mackey reduced his salary to $1 in 2007 and has forgone all future stock options and other compensation. Approximately 93 percent of stock options granted by Whole Foods has gone to employees who are not executive officers.
  15. 15. 14 RUL E 3: P ROT E C T A N D PRO M OT E � ���� � ������ ���������� ��� �������� ������� ���� ����� ���� TH E G REATER G O O D The last few years have seen record- � : % % % shattering largesse on the part of � : % % % corporate moguls. Microsoft’s Bill Gates has used his foundation to � : % % % channel billions of dollars toward healthcare and education around ���� ��� ���� ���� ����� ��������� ��� ������������... the globe, a cause to which investor ���� ������ ���� ���������� Warren Buffett has pledged stock worth in excess of $30 billion. Virgin founder Sir Richard Branson has � : % % % pledged $3 billion to fight global � : % % % warming, while Intel cofounder � : % % % Gordon Moore has invested some $5 billion in causes related to ���� ������ ������ ���������� conservation and science. Despite �� ������ �������� ������ ������ these high-profile cases, only about one-fifth of Euro RSCG survey � : % % % respondents in the U.S. and France, � : % % % and around a quarter of the sample in the U.K. claim to admire business � : % % % and business leaders more today. ���� ������ ����� ��������� Why the disconnect? The consensus appears to be that corporations have benefited enormously from increased profits and power but that most � : % % % have not used those things to the benefi t of anyone but themselves. Eight in 10 respondents � : % % % to Euro RSCG’s study note the increased profitability of corporations, and more than six � : % % % in 10 in the U.S. and U.K. consider companies better positioned to effect social change. In sharp contrast, only a minority of respondents ���� ������ ���� ����������� in at least two of the three markets believe corporations have raised their standards, become more accountable, or become more philanthropic. Nearly one-third of the sample � : % % % in the U.S. and U.K., and just under half of � : % % % French respondents believe corporations in general have failed to make meaningful � : % % % charitable contributions. And around a third in the U.S. and U.K., and seven in 10 in France believe companies aren’t doing enough to prevent discrimination based on age, gender, ���� ������ ���� ������������� race, or other grounds. � : % % % � : % % % � : % % %
  16. 16. 15 French respondents, in particular, believe ��������� ������ ����� ������ �� ����� ��... corporations should be doing much more to drive social change. They want to see corporate ������� ��������� ���� ����������� executives work with governments to address ��� ��� ���� �� ������� key global issues, and they want to see more progress in terms of helping developing countries through trade. What they don’t want to see is corporations interfering in political � : % % % affairs for their own selfish benefit. � : % % % � : % % % ����������� �������� ���������� ����� ���� ���������� ��������� � : % % % � : % % % � : % % % �������� ����� �������� ������ ������ � : % % % � : % % % � : % % % ��������� ������ ����� ��������� ������� ���������, �������������, ���.� ���� ��������� ���� ��� ���������� ������� � : % % % � : % % % � : % % %
  17. 17. 16 When the samples were asked on which issues companies should focus their philanthropic efforts, the clear winners were the environment (U.K. and France) and health (U.S.). Corporate sponsorship of cultural and sporting events, while common, is deemed far less important. ���� � ������� �� ���������� ����� ��� ������������� ��������, ����� �� ��� ��������� ������ ������� �����, ������, ��� ����� ��������� ������ ������ ������ � : % % % � : % % % � : % % % � : % % % � : % % % � : % % % ����������� �������������� �� �������������� ������� � : % % % � : % % % � : % % % � : % % % � : % % % � : % % % ��������� ����������� � : % % % � : % % % � : % % % � : % % % � : % % % � : % % % �������� ������ � : % % % � : % % % �: % % % � : % % % � : % % % � : % % %
  18. 18. 17 RULE 4: THINK ABOUT THE ENVIRONMENT BEFORE, NOT AFTER, YOU’VE DAMAGED IT We’ve seen a real shift in the past couple of years, as people who never before thought about such things have started bringing reusable bags to the grocery store, replacing incandescent bulbs with CFLs, and paying attention to recycled content. This change in attitude can be traced in large part to concern over global warming. Unlike some other eco-threats (e.g., rainforest destruction, endangered species), global warming offers plenty of scope for individual accountability and action. Numerous websites offer “carbon calculators” for measuring and tracking one’s carbon footprint, and there’s a growing market of products geared toward responsible living. In the United States, some credit for this increased awareness can rightly go to Al Gore’s An Inconvenient Truth, the fourth-highest-grossing documentary film ever. The movie clearly reached a receptive audience: A companion book authored by Gore spent 38 weeks on the New York Times bestseller list, including four weeks at #1. In France, environmentalist and TV host Nicolas Hulot has spent the last 20 years speaking out against eco-destruction; his latest book, Pour un Pacte Ecologique (“For an Ecological Treaty”), also a bestseller, is considered to have had a significant impact on France’s 2007 presidential race. Consumers expect companies to share their ��������� ������ ����� ������ �� ����� ��... environmental concerns and aren’t yet satisfied ������ ������������� ������ with the results. Substantial minorities in � ���� ������ �� ��������� ��������� the U.S. and U.K., and a clear majority of respondents in France think corporations are falling short in terms of factoring the environment into their business decisions � : % % % and paying fair value for their use of natural � : % % % resources. This is of considerable importance given that more than three-quarters of � : % % % respondents in each market are less likely to trust a company with a poor reputation for environmental and/or social responsibility. ������ ���� ����� ��� ��� ��������� ��� �� ������� ��������� Toyota has emerged as a leader in this area, not just in terms of being eco-conscious but also because of its success in rebranding itself as such. The company has managed to capture � : % % % 75 percent of the hybrid automotive market and is now extending its green approach to � : % % % energy use, recycling, and emissions offsets at its plants and other facilities. Its consumer � : % % % outreach efforts have included an extensive education and awareness tour, billboards � � � � � � � � � � � � � � � � � � � � � � � � � � � � ��� � touting gallons of gasoline saved by hybrid ������ �������������� �� � �������� drivers, and sponsorship of the Sundance �� ���� ��������� ������ �� �� �������� Channel’s The Green—ongoing programming �� ����� � ������� dedicated to environmental issues. � : % % % � : % % % � : % % %
  19. 19. we face challenges all over the world. in Africa, it’s malaria. Today, Africa’s economies are growing and contributing significantly to the world’s energy supply. But millions of African lives are still being affected by malaria, a preventable disease that’s spread by infected mosquitoes. With a presence in Africa for more than 100 years, ExxonMobil is working to drastically cut the number of malaria cases through sustained financial and on-the-ground support. As people around the world mark Africa Malaria Day this year, we’re partnering with many groups, including governments and international health organizations, to combat malaria and save lives. These efforts include everything from developing new drugs to distributing insecticide-treated nets to places where they’re desperately needed. Because if we work together, we can all help ensure Africa has a brighter future.
  20. 20. Euro RSCG has been the AOR for Veolia since 2006. The current corporate campaign has won several awards, including an Effie for corporate communication (2007) and best Internet campaign ( Le Journal du Net, 2007). The campaign launched in Europe and will expand to the U.S., Australia, and the Middle East in 2008.
  21. 21. 20 RUL E 5: RES PE C T CONS UMERS ’ PO W E R ������ ������� ������ ����� � ��������� ������� ��� ������� �������� Today’s consumers know more � : % % % about business and brands– � : % % % and want to be kept in the loop. Beyond knowing what their � : % % % specific brand partners are up to, they expect corporations ���������� ���� �� ���� � �������� ���� ����� ��������� in general to be forthcoming about their activities, impact, and goals. Beyond that, they � : % % % believe companies should � : % % % behave according to the will � : % % % of the people. Welcome to the Consumer Republic! ���������� ���� ������ ��� ������� ����� ��������� � : % % % � : % % % � : % % % ���������� ���� �� ���������� ���� ��� ����������� � : % % % � : % % % � : % % % ���� � �������� ����� ��� ���������� �� ��������� ����� ��������� ������ �������������� �����, ���������� �������������, ���. � : % % % � : % % % � : % % %
  22. 22. 22
  23. 23. 22 To keep its customers and others informed, Stonyfield Farm has hired a former journalist to Open communication with consumers and other stakeholders is also important when things run blogs on topics related to sustainability and go wrong. The modern-day consumer expects health. GE made spreading the word to the public business leaders to be up front about corporate the fourth pillar of its ecomagination initiative. It’s misdeeds and other crises, and to be proactive been accomplishing this through its website and about undoing the damage caused. Advertising public forums, and has even invited customers comes into play here, but the most important to take part in “dreaming sessions” focused on factor, according to the study respondents, is for devising potential solutions to specific issues. the CEO to take ownership of the crisis and accept Purchases made with GE’s Earth Rewards credit responsibility for fixing it fast. card earn greenhouse gas emissions credits, helping cardholders reduce their personal carbon footprints and feel they’re contributing to the fight against global warming. ���� � ����������� ��� ���� ����� ������� � ������, ���� �� ��� ���� ��� �� ������������ ��� ������ ��� ������������� ��� ������ ���������� ��� �������, �� �� ��� ���� ��� ������ ��������� ������ ���� �������� ������ ��� ���������� � : % % % � : % % % � : % % % � : % % % � : % % % � : % % % �� ����������� �������� ��������� ��������� ��� �� ������� ���������� �������� ��� ������� ��� ���� ���� ��� ��������� ������� ���� ������ � : % % % � : % % % � : % % % � : % % % � : % % % � : % % % ����� ������ ��� ��� ��������� �� ������ ��� �������� ��������� � : % % % � : % % % � : % % % � : % % % � : % % % � : % % % ���������� ������ ��������� �� ���� ������ �� ���� �� � ��������� ���������� � : % % % � : % % % � : % % %
  24. 24. 23 CONCLUSION: CORPORATIONS AT A CROSSROAD Today, corporations are at a crossroad. Companies that believe the new realities are no more than a phase will continue to treat brand values as an adjunct issue to be appended to their annual reports. They’ll donate money to worthwhile causes, but those philanthropic goals won’t be reflected in their corporate behavior. And they’ll continue to put off reform until the regulators mandate change. As a consequence, they will lose out on the considerable competitive advantage a better-than-average reputation brings. Those corporate brands that will own the future As a growing segment of the business will behave quite differently: For them, social world has come to realize, we have entered responsibility will be manifest throughout the an era in which it’s no longer enough for brand and communicated in a single-minded companies to simply provide products and vision. Corporate values will be pushed services, and operate within previously downward and outward from the board level accepted standards of behavior. Consumers and delivered in actions, not words. These are asking their corporate partners to make companies will avoid recriminations over a positive contribution to the world, while “excess success” by creating profits that are also helping them feel good as individuals purpose-driven. Their business decisions will about the impact of their own consumption create financial wealth—for the company and choices. People want to continue to enjoy its shareholders—as well as social wealth for the pleasure of consumption, while also the larger population. These future-focused knowing their purchases are contributing to companies won’t need to resist government the greater good—or at least not detracting regulation or popular pressure; they’ll serve from it. The most successful corporate brands as standard-bearers, working in concert with will be those that address these twin pulls of NGOs and other stakeholders to build new, selfishness and altruism, and help consumers more ethical practices. And they’ll invest in feel that what’s good for them is also good for internal and external communications to the world. ← drive meaningful change.
  25. 25. “Breathe in, breathe out…With us, choosing mass transportation means choosing to produce 10 times less greenhouse gases and to consume five times less energy than if you were driving your car. Love the city.” RATP has been a client of Euro RSCG’s since 2006. Inspirez, expirez... Avec nous, choisir les transports en commun, c’est choisir de produire 10 fois moins de gaz à effet de serre et consommer 5 fois moins d’énergie que si vous utilisiez votre voiture.
  26. 26. Know is a publication of the Euro RSCG Worldwide Knowledge Exchange, a global knowledge-sharing initiative that leverages intelligence and insights within the Euro RSCG Worldwide network of agencies. Led globally by Andrew Benett, Marianne Hurstel, Ann O’Reilly, and Katina Scott, the Knowledge Exchange includes multidisciplinary leadership teams focused on a wide range of categories. Know: The Future of the Corporate Brand presents the agency’s perspective on the radically different business environment in which the corporations of tomorrow will operate. It is intended to inform our work for clients and to help prepare clients to take advantage of emerging opportunities. All advertising included within the publication was created for clients by Euro RSCG Worldwide. Euro RSCG Worldwide, a leading integrated marketing communications agency and Advertising Age’s 2006 Global Agency of the Year, is made up of 233 offices located in 75 countries throughout Europe, North America, Latin America, and Asia-Pacific. Euro RSCG provides advertising, marketing services, corporate communications, and interactive solutions to global, regional, and local clients. The agency’s client roster includes Airbus, Air France, BNP Paribas, Capgemini, Charles Schwab, Danone Group, Diageo, IBM, Jaguar, L’Oréal, LVMH Louis Vuitton, PSA Peugeot Citroën, Reckitt Benckiser, sanofi-aventis, Schering-Plough, Verizon, and Volvo. Headquartered in New York, Euro RSCG Worldwide is the largest unit of Havas, a world leader in communications (Euronext Paris SA: HAV.PA).

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