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Prsa philly 1.0[1]


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Frank Mantero, director of corporate citizenship at General Electric, discussed corporate social responsibility (CSR) and it's role in PR and driving business growth.

Frank Mantero, director of corporate citizenship at General Electric, discussed corporate social responsibility (CSR) and it's role in PR and driving business growth.

Published in: Business, Economy & Finance

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  • We must run GE with excellence and accountability. Simplify strategies and focus on execution, thereby meeting our commitments. Focus on margins and cash. And we must be relentless on cost. We want to be prepared as the economy slows. This is a smart way to run the company given the economy.
  • Edison said it best: “ I find out what the world needs, then I proceed to invent it.” That’s our purpose. That’s what we do. That’s… imagination at work.
  • High level review According to a McKinsey study, Companies are expected to be more responsive to a broader spectrum of society, especially as issues expand It is beyond “giving back” If we are giving back, what are we taking? Environment Human rights Governance Supply chain Companies can either identify and manage these issues early, to their advantage, or be left behind, creating greater risk
  • A few trends—impact to various functions, with Communications at its core More transparency into what Companies are doing in their communities and society in general Potential regulation, already being discussed in Europe, to mandate CSR reporting, similar to financial reporting Financial consequences as the SRI universe grows in the US and worldwide. Corporate citizenship has moved beyond practice.. Stakeholder want reporting and information beyond philanthropy and community relations, especially with the focus on globalization Communications plays a critical role in managing and leveraging these trends
  • How so? More customers are looking for companies that have established and well reported citizenship practices… Helps a communicator stay ahead of upcoming issues. Gary and Sebastian covered issues management in the September chat… Corporate citizenship enables communicators to stay close to stakeholders and identify potential emerging issues Other facets where it is relevant for the communicator—Employee communications, media relations, etc. Bottom line, it is important that (1) you understand what are the key drivers behind your business strategy and what are the issues behind it and (2) know who the influencers and stakeholders are for your business
  • Build your own four-point plan and tell your story, your way. Be visible and present internally. Make sure you are touching as many people as you can. Ensure that we bring people together and act with unyielding integrity. Externally, we need to tell our story with strong PR. We need to respond to every inaccurate or hyperbolic article and drive our reputation.   Vision for a Better GE: You have the responsibility to build a new company. Maybe these tough times are an opportunity to look in your closet and get rid of some things you have carried around for a while. 2009 will be tough for everyone—don’t come out of it the same old GE.
  • … and that future will look like Masdar City. It’s an initiative co-founded by GE that will create a model of the future—zero waste, carbon neutral, car-free, and powered by renewable energy. It will also house a university assisted by MIT. In addition, we are building the fifth Global Research Center in the heart of the city. Initially named the Clean Energy Technology Center, it will, naturally, focus on clean energy. By partnering with Mubadala to create the future of this region, GE is creating its own future.
  • Remember.. As we covered the three key areas of How Citizenship is defined Why it Matters And how to Communicate it I hope you have a better understanding of why it is Establish trust with the stakeholders you engage Be fast, clear and humble when you have an issue Be transparent when possible… bringing stakeholders into your business can only make you better
  • Investor repurcussions
  • Every 2 seconds, a GE (or CFM) powered aircraft takes off.
  • Leverage GE’s strengths The practices and policies that make GE a strong operating culture feed and strengthen our approach to Citizenship
  • Reputation Institute – © Harris-Fombrun Reputation QuotientSM
  • Whereas HDCT demonstrates the potential of our innovation, the Middle East demonstrates the potential of our relationships —the third point in our strategy. With our company-to-country approach, our partnerships are not only producing innovative products and services, they’re transforming entire regions.
  • Transcript

    • 1. How to Effectively Communicate Your CSR and Green Initiatives Frank Mantero Director, Corporate Citizenship Programs GE Corporation
    • 2. Today
        • Defining Citizenship
        • Reputation, Trust & CSR
        • Stakeholder & Issue Mapping
    • 3. Defining Citizenship
    • 4. “ Citizenship is not a spectator sport.”
      • Sam Nunn
        • Committee Chair, Public Responsibilities Committee and Member, GE Board of Directors
    • 5. Mckinsey’s Thesis:
      • Society’s expectations of business are changing rapidly
      • The traditional notion of what constitutes society has been
      • transformed. . .now a broader spectrum of stakeholders
      • (e.g., communities, governments)
      • Companies with a narrow view of society will be
      • increasingly on the defensive
      The Good News: Companies that proactively manage risks can turn them to opportunities and create enormous value Expectations are Changing Bringing Society Into Strategy
    • 6. Trends
        • More, not less —Move to demonstrate what a company is doing in the broader community will accelerate
        • Financial consequences for those companies that don’t move to CSR (over $2 trillion already invested in Socially Responsible Investment (SRI) funds in the United States)
        • Regulation compelling CSR reporting is on the way, up to and including standardized reporting
        • Early adopting companies that embrace comprehensive CSR policies and implement then well can create real differentiation and business value
        • CSR practices not sufficient-they have to be reported to, informed by, customers, stakeholders and the community at large
      Communications has the accountability and opportunity to play a key role
    • 7. Relevance Implications for Communications Professionals
      • Community Relations
        • Non-profit partnerships
        • NGOs
      • Reputation Management
      • Branding
      • Thought leadership
      • Issues Management
        • Crisis management
      • Media Relations
      • National
      • Trades
      • Social media
      • Employee Communications
        • CEO communication
        • Employee satisfaction
        • Employee retention
      • Understand the key drivers of their business and issues that affect it
      • Know the key influencers of their business
      • Marketing Communications
        • Sales collateral
        • Advertising
        • Customer engagement
      • Influencers/Stakeholders
      • Industry Analysts
      • Trade Associations
      • Government/Regulatory
      • Investors
    • 8. Benefits
        • By publicizing commitment to socially conscious business practices, companies create and deepen stakeholder relationships.
        • Companies that aim to integrate CSR into their overall business strategy and operations realize benefits.
      “ Not only do we have to follow the laws, which we have always had to do, but now we have to anticipate informal social contracts and understand that we play in a bigger thing called society and that these all have impacts on the bottom line. . .” Jeff Immelt Corporate Citizenship Benefits Reputation Management Risk Management Employee Satisfaction Innovation & Learning Access to Capital Financial Performance
    • 9. GE Citizenship Messaging Framework Proactive commitment to being a good global citizen
      • Make Money Strong, sustained economic performance
      • Make It Ethically Rigorous compliance with financial & legal rules
      • Make A Difference Ethical actions, beyond formal requirements, to advance GE’s reputation and long-term health
    • 10. GE Citizenship Focus Areas
      • GE’s commitment of resources – technology, process & people – to solve some of the world’s toughest problems, making a difference for the world’s vulnerable populations
      Improve standards and achievement for primary & secondary education Education Improve health-care delivery in targeted developing world communities Health Improve access to safe drinking water for rural and peri-urban groups Environment Helping build communities for sustainable prosperity Community Building Going beyond compliance to co-create value and earn a license to operate with stakeholders through engagement and a renewed commitment to openness and transparency.
    • 11. Reputation, Trust & CSR
    • 12. The Age of Transparency
        • Revitalize corporate reputations after the destruction of 20% of the world’s market value.
        • Rethink priorities and heeding the messages of consumers the world over.
        • Listen closely to the concerns of stakeholders, demonstrate authentic care for communities, commit to a shared set of values with their employees—and stand behind these beliefs even at a cost to short-term performance.
      These actions will develop enduring, sustainable, value-creating results and maintain their corporate reputations.
    • 13.
      • Corporate Citizenship Index 44.3%
      Corporate Reputation Reputation Institute Model Reputation is built on 7 pillars from which a company can create a strategic platform for communicating with its stakeholders on the most relevant key performance indicators. 18.2% 13.2% 13.3% 16.4% 14.6% 12.2% 12.1%
    • 14.
        • Goals:
        • Convene diverse stakeholders … listen and learn about their concerns & issues
        • Identify improvements for GE’s citizenship communications
        • Identify emerging trends that may impact GE
        • Develop lines of communication to facilitate ongoing relationships
      Stakeholder Engagement Stakeholder feedback sought for continuous improvement
    • 15. Reporting Policy Business 05-06 06-07 08-Present NYC London NYC Brussels Hong Kong NYC Geneva Washington Delhi NYC Sao Paolo Beijing GE Stakeholder Convening Process This dialogue has allowed us to better understand how our business goals can be aligned with commonly held social goals. The counsel we received helped strengthen our citizenship mission.
    • 16. Reputation-Building What : Identify strengths/gaps in engagement, leveraging relationships with key influencers for endorsement Who : Global influencers (Media, NGOs, IGOs, peer companies, etc.) with GE business participation 1 3 2 Inventory Align Analysis Inventory all influencers from past 3-4 years (~300) Align influencers against key issues Identify gaps and opportunities for endorsement/ advocacy 4 Outreach Develop action plan for key stakeholders to tell GE story on a key issue HOW
      • Op-eds
      • Case studies
      • White papers
      • Media opps
      • Conferences/ speaking opps
      • Government relations/ public policy
      • Online perspectives
      • Online Forum
    • 17. Engagement ecomagination Environmental Social Governance
      • 10 companies; 4 NGO founders
        • GHG reduction needs to be global
        • Technology exists to address climate change
        • Deployment often requires policy support
          • Incentives and mandates
          • US needs to lead
        • Long term price for carbon accelerates deployment
      Human Rights Joined BLIHR as the 13 th company, supporting the organization’s mission “to find practical ways within a business context to promote human rights” Make human rights considerations mainstream in day-to-day operations Developed Statement of Principles on Human Rights GE was one of the founders of TI in mid-1990s to address corporate and political corruption Response to inconsistent anti-corruption enforcement and frameworks The TI Index is now the most commonly used measure for corruption in countries worldwide. Anti-Corruption
    • 18. Reporting
      • The Need : A proactive communication to enhance long-term success with all stakeholders
        • Build stakeholder relationships
        • Strengthen reputation
        • Increasing demands for fuller disclosure -- The “how,” not “what”
      • The Result: An integrated story of how GE conducts business, its impacts on communities, and its efforts to be a good and trusted world citizen.
      “ In an increasingly global and transparent world, we measure our performance in a context broader than financial results and stock price. Everyday, we strive to be a responsible citizen, to perform with integrity and to serve our customers, investors and other stakeholders responsibly.” Brackett Denniston, GE Senior Vice President & General Counsel
    • 19. 2009 Citizenship Report July 21 Launch
      • Initial Feedback/Reviews:
        • Browse the report to see some of GE's advanced responsible workplace practices. It's worth it. CSR for HR
        • The document is just as much a report as a kind of treatise on how – in the age of global corporations – businesses should be run and how they should interact with individuals and the environment. Evolved Employer
        • Pay attention to the language…. It means that the company is in the game and on record with some long-term thinking regarding corporate priorities. Business Ethics
        • GE has gotten much better at listening to critics and outside voices, and in working with them. Marc Gunther/CSR Blogger
      3,000 Issues sent GE offices around the world for customer/government distribution 5,000 Copies distributed directly to global stakeholders 105,000 Website views/month-traffic to new site has doubled 6 Translations available
    • 20. Transparency in Reporting Cluster Bombs
    • 21. Transparency in Reporting Issue
        • For over five years, GE has communicated that the company does not manufacture components for cluster bombs or landmines.
        • In preparing the 2007 Citizenship Report, the company became aware that this was an inaccurate statement.
        • In fact, GE acquired a company in 2001 that was supplying a sensor for use by a U.S. manufacturer of a next-generation cluster weapon for supply to the U.S. military .
    • 22. Transparency in Reporting Issue
      • GE was faced with an inconsistency in practice against stated commitments.
      In 2005, sales of this sensor generated less than 0.001% of consolidated GE revenues. Of more than 250 million sensors produced each year, only 15,000 are used for this application.
    • 23. Transparency in Reporting Discussion
        • Discussions held among business leaders of the impacted business and the corporate communications, citizenship and legal teams.
        • Best approach was full transparency, including publishing the disclosure in the annual citizenship report.
        • Decision was ultimately made to cease supplying this product to the customer.
        • The next step was in ensuring this decision was communicated successfully.
    • 24. Transparency in Reporting Stakeholder Engagement
        • Ahead of report release, GE engaged stakeholders about the situation, including various socially responsible investment (SRI) firms and NGOs, all of which had a unique interest in this area.
        • The purpose of these briefings was to demonstrate our commitment to addressing this issue and answering any questions each organization had before we released the report.
    • 25. Transparency in Reporting Results—presented as best practices in responsible corporate citizenship reporting and transparency.
      • The Boston College Center for Corporate Citizenship
          • “ GE is to be congratulated for disclosing and remedying shortfalls in areas of key stakeholder concern, notably its discovery that one of its business units…was selling components destined for use in cluster bombs. GE's summary of the cluster bomb situation is a leading example of best practices in reporting and transparency.”
        • Ethical Performance Newsletter
          • “ The detail in GE’s report is formidable and the argumentation credible. The inclusion of lessons learned from errors of the past and outstanding criticisms today enhance the quality of the main body of the report’s text.”
        • Corporate Responsibility and Sustainability Communications
          • A report published by Edelman Public Relations, in collaboration with the Boston College Center for Corporate Citizenship, Net Impact and the World Business Council on Sustainable Development (WBCSD), where GE is mentioned as a best practice in regards to transparency based on the cluster bomb disclosure issue.
    • 26. Final Thoughts…
        • Like any relationship, you have to establish trust with stakeholders, in part, by the accuracy of the information you provide.
        • When you have an issue, you need to engage with speed, clarity and a bit of humility. In admitting missteps, show that you are human but diligent and trustworthy.
        • Transparency can shine light on issues in your business and help you get better—it is the right thing to do.
    • 27.  
    • 28. Citizenship & Operational Excellence
    • 29.
      • AA1000 Assurance Standard--Process standard for social/sustainability reporting
      • CERES principles Self-assessment principles
      • Dow Jones Sustainability Index Rating system
      • FTSE4Good Index -- Rating system
      • GRI G3 --Reporting guidelines
      • ISO26000 -- Voluntary guidelines
      • ISO14001 -- Voluntary technical standard
      • OECD Guidelines for MNCs -- Guidelines
      • SA8000 -- Audit standard
      • UN Global Compact -- Voluntary principles
      Codes, Standards & Rankings “ While the policing model of the past has made some positive improvements, it has been relatively unsuccessful at identifying the core issues. “This has created a duplication of efforts, contributed to a proliferation of codes of conduct that create confusion, and has largely been an ineffective use of resources.” Sean Ansett, Founder, At Stake Advisors Isolated Efforts to Measure Performance
    • 30. Prioritizing Citizenship Communications
      • GE identifies citizenship risks and opportunities that:
      • Are closely integrated to business strategy
      • Substantially influence the decisions of stakeholders.
      • Have a significant influence over GE’s business success.
    • 31. Citizenship—Employee Expectations Actions to Build
      • Review the GE Corporate Citizenship Report
      • Review The Spirit & The Letter
      • Know yourself: Understand the benefits of responsible corporate citizenship & be familiar with key messages (corporate and business)
      • Know your business: Understand your business corporate citizenship priorities and identify business benefits of reflecting corporate citizenship within your strategy
      • Know your environment: understand existing or emerging issues relevant to your business, know your target audience(s) and specific messages for those stakeholders and identify business examples or successes that can position the issue favorably for your business
      • With the support of your Communications team, volunteer to participate in interviews with the media
      • Volunteer to investigate Integrity concerns across your organization
      • Participate with your Ombudsperson, when appropriate
      • Get involved in Community Service Projects through GE Volunteers and ELFUN
      • Training
      • View on-demand HR Orientation module on “Corporate Citizenship”
      • Resources
      • GE Corporate Citizenship Report
      • The Spirit & The Letter
      • GE Corporate Citizenship :
      • GE Developing Futures in Education :
      • GE Developing Health Globally :
      • GE Corporate Citizenship Employee Portal :
      • GE Corporate Citizenship Comm Toolkit :
      • GE Volunteers Portal :
      • GE Star Awards:
      • GE Foundation :
      • GE Foundation Matching Gifts :
      • Reading
    • 32. Corporate Citizenship at GE
    • 33. Integrated Citizenship Approach Optimizes resource utilization & shareholder value Leverage Company strengths Business Operations citizenship Strengthens operations & enable insights Our CSR Strategy is our Business Strategy People Process Technology Operational Excellence
    • 34. Where Do Reputations Come From? Stakeholder Perceptions Corporate Messaging Branding Activities Sponsorship Initiatives PR/IR Events CSR Programs Media Conversation Print Broadcast Internet Stakeholder Experiences Product Quality Customer Service Investment Performance Treatment of Employees Reputation
    • 35. Corporate Reputation Reputation Institute Model
      • Reputation is built on 7 pillars from which a company can create a strategic platform for communicating with its stakeholders on the most relevant key performance indicators.
    • 36.
      • Reputation is built on 7 pillars from which a company can create a strategic platform for communicating with its stakeholders on the most relevant key performance indicators.
      Corporate Reputation Reputation Institute Model 18.2% 13.2% 13.3% 16.4% 14.6% 12.2% 12.1%
    • 37. Reputation & Transparency
      • The good news is that the most reputable companies are going beyond compliance to co-create value and earn a license to operate with their stakeholders through a renewed commitment to openness and transparency.
      • It isn’t for the faint of heart.
      ” Transparency is not a gray area for GE” --Chairman & CEO Jeff Immelt What does that kind of transparency look like?
    • 38. Issue & Stakeholder Mapping