A major trend that I consider in my work and that is influencing tomorrow’s winners is the rise in environmental, social and governance principles (ESG). That’s code for “we need to all be considerate global citizens.” (CSR, or Corporate Social Responsibility, is how ESG relates to brand marketing.) People are taking notice, at all levels and everywhere. From stock exchanges to massive pension funds, the UN to Millennials, and big non-profits to those on shoe-string budgets, the discussions and work that are happening will lead to good things. For customers. Investors. Employees. Suppliers. Our communities, too. Nirvana for marketers wired to create value that makes a difference. Follow me here, on Twitter and LinkedIn if you feel the same way.

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Triggers and Considerations for refreshing CSR marketing services
to create greater economic value for clients
March 26, 2015

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The backdrop
Full (albeit slow to implement) sustainability commitments by global governance organizations
and leaders (e.g. UN Global Compact, World Economic Forum, etc.)
Growth of Corporate Responsibility reporting within the global business community – much of it
driven by new regulations – as 71% of the top 100 companies in 41 countries covered in KPMG’s
Corporate Citizenship survey are reporting on CR
The broad adoption of Environment, Social and Governance (ESG) principles (e.g. PRI, global stock
exchanges, pension fund mandates)
The specific integration of ESG principles into traditional financial analysis, up +116% globally
from 2012 to the start of 2014 and reaching $12.9 trillion in AUM
Recognized synergies/overlaps between sustainability, corporate responsibility, and ESG
Sources: “Value of sustainability reporting”, Ernst & Young LLP & Boston College Center for Corporate Citizenship
(link), “The KPMG Survey of Corporate Responsibility Reporting 2013” (link); Pension & Investments.

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Sources: “Value of sustainability reporting” study by Ernst & Young LLP and the Boston College Center for Corporate
Citizenship; data from GRI Sustainability Database; The KPMG Survey of Corporate Responsibility Reporting 2013” (link); .
CR reporting growth is institutionalizing corporate responsibility.
“CR reporting is the means by which a business can understand both its exposure to the risks of environmental and social changes and
its potential to profit from the new commercial opportunities…it appears to be standard business practice the world over.” (KPMG)

4. Global momentum of CR reporting confirms full commitments.
71% of top 100 companies in 41 countries covered in KPMG survey are reporting on Corporate Responsibility.
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ESG investing growth correlates CSR to the financial markets.
Assets and funds incorporating ESG criteria in the U.S. have grown from $12 billion in 1995 to $4.3 trillion in 2014.
 The financial markets are demanding substantive CSR.

6. Abundant proof that CSR is embedded in ESG/SRI activities.
“Institutional investors are also using checklists to evaluate a company’s CSR efforts and consider a range of issues, including
governance practices, board diversity…” (IR Magazine)
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7. www.tillypick.com 7Source: “Value of sustainability reporting” study by Ernst & Young LLP and the Boston College Center for Corporate Citizenship
While “reputation” is a major outcome of CR reporting….
Major Outcome

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…“reputation” is not a primary reason for CR reporting.
Low Priority
Source: “Value of sustainability reporting” study by Ernst & Young LLP and the Boston College Center for Corporate Citizenship

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The KPMG and BC-CCC studies also point to gaps to be solved
within CR reporting or with supplemental CR activities.
Industries, countries, content areas with poor CR reporting grades overall
Industries which derive low value from CR reporting to support customer & employee loyalty
Significant supply chain coverage gaps within CR reports
Coverage gaps in product/service impacts within CR reports
Imbalanced reporting of sustainability megaforces
Insufficiently identified innovation and opportunities
Sources: “Value of sustainability reporting”, Ernst & Young LLP & Boston College Center for Corporate
Citizenship (link), “The KPMG Survey of Corporate Responsibility Reporting 2013” (link).

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Industries, countries, content areas
with poor CR reporting grades overall:

11. www.tillypick.com 11Source: “Value of sustainability reporting” study by Ernst & Young LLP and the Boston College Center for Corporate Citizenship
Industries which derive low value from CR reporting
to support customer and employee loyalty:

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Significant supply chain coverage gaps within CR reports:

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Coverage gaps in product/service impacts within CR reports:

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Imbalanced reporting of sustainability megaforces:
“They do not function in isolation from each other – they are interlinked in a complex system.”

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Insufficiently identified innovation and opportunities:

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Triggers and Considerations for refreshing CSR marketing services
to create greater economic value for clients
1. Strategic activation of CR reports
2. More impactful production (for increased consumption) of CR reporting content
3. Increased communications effectiveness of CR reports
4. More integrated and efficient implementation

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1. Strategic activation of CR reports
Because the brand and an organization’s reputation are not and likely never will be a primary
consideration for CR reporting, the actual reporting of CR achievements is likely underleveraged
for business activities where brand and reputation are key assets, including customer loyalty,
marketing to prospects, employee engagement/retention, and talent acquisition.
The trigger here is the difference (and gap) between publishing CR achievements and getting key
audiences to read, engage, and act on them.
The solve is implementing (or leveraging and supplementing existing) subject matter experts
within an agency to strategically advise clients on maximizing the investment in CR reporting to
support business priorities with key audiences. This includes the supply chain (where most of the
sustainability issues tend to reside), employees (engagement, retention, acquisition), investors
(ESG), communities, and customers.

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2. More impactful production (for increased consumption)
of CR reporting content
A second trigger is client feedback or directly observing lackluster engagement at internal or
external activities related to CR, likely because of the complex, technical subject matter and/or
lack of creative communications expertise applied in implementation.
One possible solve is applying retailing principles – intrusiveness, engagement, an action
orientation -- to produce/repurpose content of actual CR reports for “retail impact” at events,
in social media, in employee communications, and in the customer experience.

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3. Increased communications effectiveness of CR reports
Another potential trigger is being able to gauge the communications effectiveness of CR
reports in general as well as for different audiences. This includes investor relations’ ESG
and/or CR communications with analysts and investors to prove an organization’s long term
value and resilience to environmental and social change.
The solve to consider is qualitative or quantitative testing of full CR reports, themes, specific
content sections to monitor, assess and optimize communications effectiveness.

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4. More integrated and efficient implementation
A fourth trigger relates to Corporate Responsibility being integrated into all parts of an
organization versus being its own department/unit. “Digital” also started out as its own domain
and was initially tied to IT, but now is an expected skillset across the board.
With many different organizational teams needing to come together to communicate about CR
activities internally and externally to a range of stakeholders, complexity, process, limited
resources, and politics become tangible obstacles for effective communications design.
A potential solve here may be a “train the trainer” program that teaches, facilitates, and, if
needed, can service/coordinate a client’s various teams to support their CR communications
design and implementation activities.
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extraordinary global citizenship to create economic value.