Ethics And Sustainability

Sustainable Practices + Ethics = Public Relations opportunities The Wolcott Company

Why?

More companies, organizations issuing Sustainability Reports

Ethics taking top billing in reports, in media coverage

Risks growing – “walk” the “talk”

≈

As they occur, ethical dilemmas are a natural discussion between

PR managers and executives

The Wolcott Company

Ethics? CSR? Sustainability?

An evolutionary process

Stewardship

Ethics

Reputation Management

Corporate Social Responsibility

Corporate Governance

Sustainability

?

The Wolcott Company

1870s: Cadbury chocolate company created company village, medical dept., pension funds

1919: Eastman Kodak gave employees a stake in company

1940s: Johnson and Johnson said it’s stakeholders were “customers, employees and communities it operated in” (ahead of stockholders)

1990s: Tata Steel (India’s oldest): “…did we fulfill our moral and social responsibilities?”

The Wolcott Company

“ I think many people assume, wrongly, that a company exists simply to make money. While this is an important result of a company’s existence, we have to go deeper and find the real reasons for our being…….”

“ At a company….. a group of people come together… to make a contribution to society.”

Dave Packard, co-founder

of Hewlett-Packard, 1939

The Wolcott Company

CSR $

2007: Nearly 80 % of executives said that corporate responsibility programs enhance profitability

( 2007 Grant Thornton survey of U.S. Business Leaders )

Average of $2.5 million more in annual revenue for Fortune 500 companies with reputation for being socially responsible

(Pepperdine University business school)

62% of leads, 34% of clients for Manpower’s CS office a result of CSR

The Wolcott Company

Environmental issues

Ethics and corporate governance

Employee and product safety

The Wolcott Company

Sustainable Development

Meets present needs without

compromising ability of future generations to meet their own needs

The Wolcott Company

Sustainability Pillars

Environment

(Health)

Economic

Social

(Human Rights, Ethics)

The Wolcott Company

Sustainability must include Ethics

PR pros must lead the way

As professionals, we pledge

As professionals, we perform

As professionals, we counsel

Our counsel on ethical dilemmas can help companies survive

The Wolcott Company

Why PR at the Ethics Table

Opportunity Knocking

Critics say PR inherently lacks ethics

“ A threat to truthful journalism”

Center for publicintegrity.org)

“ ..modern PR practices give vested interests..opportunity to deceive..”

Corporatewatch.org.uk

The Wolcott Company

We’re becoming less afraid to lead discussion, profess our values

CEOs turning to PR frequently for advise and counsel on issues

Ethical dilemmas often involve publics

More than 65% of PR managers providing some level of ethical advising at top level

Bowen & Heath 2006 (IABC)

The Wolcott Company

Our Code of Ethical Conduct

Truth, fairness, honesty, conflicts of interest

Accountable *

Disclosure of information

Fair competition among PR professionals

Preserve intellectual property rights

Signed copies with clients?

Next step in this process with PRSA

The Wolcott Company

Threat to “PR’s Place at Table” ?

More than 75% advising based on experience (Institute for Public Relations)

i.e. “No academic training”

Leaves young professional at disadvantage

Sustainable initiatives must be a “complete package”

Public acceptance

Media scrutiny

Bulletproof implementation

The Wolcott Company

Role of Ethics officer:

Develop corporate ethics policies:

For Employees

For Board of Directors

For Contractors and Vendors

The Wolcott Company

Role of Public Relations Pro:

Ensure management understands why ethics programs will be scrutinized by public & translates into sustainability

Develop messages, value proposition

“ Pre-message” (How should it look)

Road test the declarations

Fully understand ethics policies & officer

Ensure integration of ethics, CSR into sustainability report

The Wolcott Company

Role of Public Relations Pro:

Employees must believe it, engage it

Internal communications programs are critical to success

PR can ensure full integration

Stay “globally aware”

Read sustainability reports to gauge your efforts

The “bar” will just go up

The Wolcott Company

Ethics in Sustainable policies

Companies and organizations are driving the sustainability discussion

Social consciousness

Stronger political will

Some early initiatives failed – no “ethics check” or internal buy-in (Ford, Target)

Sustainability, ethics and CRS programs not linked everywhere

China syndrome

The Wolcott Company

Emerging trends

2005-08

The Wolcott Company

“… we believe in conducting business in a socially responsible manner based on the highest ethical principles of trust, teamwork, honesty and respect for the rights and dignity of others. We are determined to build our business with partners who ensure their employees are treated ethically, in accordance with all applicable contractual obligations, regulations and laws.”

Corporate Express (January 2008)

(acquired by Staples in July 2008)

The Wolcott Company

At Staples, we strive to work with suppliers who treat their workers with dignity and respect, adhere to applicable laws and regulations, and make their products in an environmentally sustainable manner.

Staples Supplier Code of Conduct (2004-2006)

The Wolcott Company

Staples “Soul Report”

“… will take additional steps to more accurately measure ethics program performance….”

The Wolcott Company

2008

“ Staples Soul reflects our commitment to corporate responsibility. It’s what moves us to embrace diversity, sustain the environment, give back to our communities and practice sound ethics.”