Responsible Business Summit 2011 The 2011 Business Case for Continuous Stakeholder Engagement Dan Bena Senior Director Sustainable Development
<ul><li>Everyone likes to be liked… </li></ul>… and so do companies!
<ul><li>“… one of the most important ways to rebuild the system stronger than before is to rebuild trust stronger than before— and you do not have to wait for a new law to do that.” </li></ul><ul><li>President Barack Obama, speech to financial community, Federal Hall, New York. September 2009 </li></ul>… and relationships are all about trust
Corporate reputation is now based on trust and transparency as much as quality <ul><li>B63.-72. How important are each of the following factors to the overall reputation of the company? Please use a nine-point scale where one means that factor is “not at all important” and nine means it is “extremely important” to overall reputation. (Top 2 Box, Very/ Extremely Important) Informed Publics ages 25-64 in 22 countries </li></ul>
It’s a stakeholder, not a shareholder, world— and stakeholders are crucial to business success <ul><li>D83. When a CEO makes business decisions for his or her company, which stakeholder SHOULD BE most important to a CEO’s business decisions? Informed Publics ages 25-64 in 22 countries </li></ul><ul><li>Which stakeholder should be most important to a CEO’s business decisions? </li></ul>
<ul><li>Over the years, the landscape of stakeholders has changed significantly </li></ul><ul><li>Due in large part to social media and e-communications, smaller stakeholder groups have gained power </li></ul>High Power Low Interest High Power High Interest Low Power High Interest Low Power Low Interest Critical lesson : It’s great to try to engage many diverse stakeholders—BUT—it’s also okay NOT to engage with everyone!! Power Interest
Stakeholder : the general populace Companies “held completely responsible for,” average of 32 countries
Stakeholder : PepsiCo’s Consumers <ul><li>Project Atlas: 9,000 PepsiCo consumers, 9 countries </li></ul>Minimizes use of preservatives & artificial ingredients in its products 65% 69% 70% 77% 75% Uses environmentally friendly packaging 65% 70% 75% 75% 73% Minimizes air and water pollution 63% 67% 71% 70% 74% Supports schools & community groups and charitable organizations 63% 64% 69% 65% 69% Works with local government/community organizations to reduce waste and litter 61% 64% 67% 66% 71% Supports farmers & suppliers and acts in their best interest 60% 64% 64% 65% 73%