Corporate Responsibility Communications Trends. Conference Board June 2010

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Trends in communicating around corporate responsibility

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Corporate Responsibility Communications Trends. Conference Board June 2010

  1. 1. Mike Lawrence Is the Sustainability Message Chief Reputation Officer Sustainable? June 11, 2010
  2. 2. Agenda • The CSR Landscape – Despite Wavering Economy Companies Not Backing Off Economy, – CR is Starting to Drive Core Changes That Lead to Innovation and Business Value – Companies Becoming Smarter About Using Data – Stakeholder Engagement Increasing and Broadening – Empowered Citizens are Driving CR via Social Media • Key CR Lessons for Companies Today • What’s Next? Confidential and Proprietary 2
  3. 3. How Has the CSR Landscape Changed/Shifted? Confidential and Proprietary 3
  4. 4. Despite Wavering Economy, Companies Not Backing Off p g
  5. 5. Consumer Expectations Remain High Expectations of Companies to Make and Sell Environmentally Responsible Products and Services During an Economic Downturn Lower 15% Same S 50% 85% Say expectations are Higher the same or higher 35% 2009 Cone Consumer Environmental Survey Confidential and Proprietary 5
  6. 6. Companies Report Steady Investment in CR 86% say investment is the same or higher Confidential and Proprietary 6
  7. 7. Investors Focusing on Environment Confidential and Proprietary 7
  8. 8. Reporting Continues to Grow Confidential and Proprietary 8
  9. 9. Setting Bold Goals “Energy efficiency and carbon Energy reduction are central issues in the world today. We’ve been working to make a difference in these areas, both in our own footprint and our supply chain chain. We know that we have an opportunity to do more and the capacity to do more.” - Mike Duke Walmart president & CEO Confidential and Proprietary 9
  10. 10. Setting Bold Goals Confidential and Proprietary 10
  11. 11. Achieving Bold Goals 2012 Deadline 62 of Original 2010 Commitments Achieved; 80 New Commitments Established for 2015 39 Commitments Reached; Plan A Becomes Cost 2009 Positive Original “Plan A” 2007 Commitments Made: Confidential and Proprietary 100 Over 5 Years 11
  12. 12. Companies Driving CR Down to Suppliers Confidential and Proprietary 12
  13. 13. Companies Driving CR Down to Suppliers Confidential and Proprietary 13
  14. 14. Companies Driving CR Down to Suppliers “[IBM will require its 28,000 suppliers in more than IBM] 90 countries t install management systems t gather t i to i t ll t t to th data on their energy use, greenhouse gas emissions and waste and recycling.” Confidential and Proprietary 14
  15. 15. CR is Starting to Drive Core Changes That Lead to Innovation and Business Value
  16. 16. Allsup: Allsup: Service Innovation • Provides help with p Social Security Disability Approval • Identified de t ed Additional Demand for Financial Services • Created Allsup Medicare Advisor Program in Response Confidential and Proprietary 16
  17. 17. Unilever: Creating New Markets Confidential and Proprietary 17
  18. 18. Issues Influence Product Messaging Confidential and Proprietary 18
  19. 19. Companies Becoming Smarter About Using Data g
  20. 20. Sustainability Pays: Operational Costs Confidential and Proprietary 20
  21. 21. Putting Data to Use: Nestle Waters North America Confidential and Proprietary 21
  22. 22. Putting Data to Use: Nestle Waters North America Most in-depth study on environmental impact of drinking water & alternative d i ki t lt ti beverages Findingsg • Water is best beverage option for the environment • Bottled water is best packaged beverage option based on environmental impact • Nestle Waters’ Eco-Shape bottled water has lightest footprint among all packaged beverages Confidential and Proprietary 22
  23. 23. Stakeholder Engagement Increasing and Broadening g g
  24. 24. Importance of Stakeholder Engagement Confidential and Proprietary 2010 Cone Shared Responsibility Study 24
  25. 25. Vodafone: Engagement and Dialogue • Share results of focus groups with experts and key opinion leaders • Commissions independent research on key issues Confidential and Proprietary 25
  26. 26. Starbucks Data Dashboard: Interactive Reporting Icons delineate key performance indicators; rollover to get key statistic/progress against g /p g g goals Overview of 2009 activities in key CR pillars Confidential and Proprietary 26
  27. 27. SAP: Interactive Reporting Confidential and Proprietary 27
  28. 28. Sodexo: Sodexo: Engaging All Stakeholders Confidential and Proprietary 28
  29. 29. Empowered Citizens are Driving CR via Social Media
  30. 30. American Consumers Want a Voice 44% would buy or boycott a company’s products compan ’s p od cts to help influence corporate social/environmental practices and initiatives Confidential and Proprietary 2010 Cone Shared Responsibility Study 30
  31. 31. New Media is a Viable Way to Reach Them Confidential and Proprietary 2009 Cone Consumer New Media Study 31
  32. 32. Activating Consumers Around an Issue Confidential and Proprietary 32
  33. 33. Consumers Help Make CSR Decisions Confidential and Proprietary 33
  34. 34. Pepsi Refresh Project Confidential and Proprietary 34
  35. 35. My Starbucks Idea: Sourcing Ideas Confidential and Proprietary 35
  36. 36. Starbucks: Beta Cup Confidential and Proprietary 36
  37. 37. The Good Guide Confidential and Proprietary 37
  38. 38. Socialyell.com Confidential and Proprietary 38
  39. 39. Key CR Lessons for Companies Today p y Confidential and Proprietary 39
  40. 40. Lessons: • Corporate Responsibility activity is growing despite a negative economy g y • It is sustainable because “social responsibility” is increasingly being approached as “social opportunity” that creates tangible value as well as reputation value • Robust stakeholder engagement is a must do and needs to be built into the planning and execution of programs • The public/end users are demanding to be “part of the game” and will reward and punish accordingly • Corporate communications about CR/sustainability should evolve beyond “broadcasts” (one-way) and beyond dialogue (two-way) to true engagement (co- creation of ideas) ) Confidential and Proprietary 40
  41. 41. What’s Next? Confidential and Proprietary 41
  42. 42. Shared Responsibility Shared Responsibility is a business p y strategy that addresses issues material to a company’s business growth, while p y g , meeting the expectations and needs of stakeholders and society. y Confidential and Proprietary 42
  43. 43. BP –When CR is Marketed But Not Core to Business “…we produced a solution that 2010 2005 preserved wetlands.” d l d ” “Environment - T provide h t “E i t To id heat, power and mobility for the U.S., new pipelines have to be built. In Louisiana, BP pioneered a new standard for pipeline construction. pp Working with environmental groups, community leaders, even loyal oystermen, we produced a solution that preserved wetlands.” Confidential and Proprietary 43
  44. 44. BP’s CR Communications Solution?? Confidential and Proprietary 44
  45. 45. Mike Lawrence Chief Reputation Officer & EVP MLawrence@coneinc.com MLawrence@coneinc com 617-939-8328 Twitter: @Mike_Lawrence www.coneinc.com www.coneinc.com/whatdoyoustandfor www coneinc com/whatdoyoustandfor Confidential and Proprietary 45

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