2. The Link Between CSR and Reputation
Worldwide views on the local impact of corporate responsibility
Philip Mirvis, Center for Corporate Citizenship
For UNGC Lead Webinar, May, 2009

3. Reputation and CSR
Reputation is an “intangible” asset:
•Accounts for ±10% of market value of corporations
CSR is a major influencer of Reputation:
•40% of reputation is driven by Citizenship, Governance, and Workplace
perceptions
Positive CSR perception leads to recommendation:
•65% of the General Public will “Definitely Recommend” the top 20 CSR US
companies vs only 26% recommendation for bottom 20 CSR companies
Key Reputational Benefits
•Recruit and Retain Employees, Sales, Market Entry, License to Operate
•“Bad Behavior” = Reputation Killer
3

4. Paradox for Business in a Downturn…..
Around the world...
60-70%
10-20%
4

5. Reputation is based on feelings
5

6. Reputation is driven by 7 dimensions
6

7. Citizenship, Governance and Workplace
Account for Over 40% of Reputation Globally
11.6 17.6
% %
11.8 13.6
% %
CSR
Index 14.6
Weight 16.3
%
= 45.4% %
14.5
%
Adjusted R-squared = 0.774
n = 27,000
Note: Based on random sample of 1,000 rating
Source: 2008 Global Pulse, Reputation Institute per country
Copyright © Reputation Institute. All rights reserved.
7

8. The Corporate Social Responsibility Index
- 3 Dimensions
Citizenship (Community and the Environment)
1. Expectation that Business will contribute to community
2. Environment #1 Issue for Public/Business globally
Governance (Ethics and Transparency)
1. License to Operate, Wall Street Crisis
2. Key Reputational Driver today
Workplace (Good place to work and Treats Employees well)
1. USA: #1 Criteria for Corporate Citizen
2. High Priority: Millennial Generation, EU and D&E markets
8

9. Company Weights in Select Countries
Where will CSR give you the highest ROR (Return on Reputation)?
________France
________USA
________China
________Brazil
________ South Korea
9

10. Company Weights in Select Countries
Where will CSR give you the highest ROR:
1 France
2 South Korea
3 Brazil
4 USA
5 China
10

11. Importance of Citizenship, Governance and Workplace
Varies by Country
Note: Weights are
derived from the
Driver Analysis. Each
weight represents
unique contribution
of
given dimension to
explaining
companies’
reputation. The CSR
Index weight is a
sum of weights for
citizenship,
governance
and workplace
dimension weights.
Source: 2008 Global Pulse, Reputation Institute Copyright © Reputation Institute. All rights
reserved. 11

12. 12

13. 2008 Country Ratings of CSR Index
Note: Ratings are a mean of company scores collected in each country. All scores are globally adjusted. The CSR
Index is
a mean of the Global Pulse, Reputationand workplace dimension scores per country.
Source: 2008 citizenship, governance Institute
Copyright © Reputation Institute. All rights reserved.
13

14. Performance vs. Importance
- By Country
PERFORMANCE
Source: 2008 Global Pulse, Reputation Institute
Copyright © Reputation Institute. All rights reserved.
IMPORTANCE
14

16. The Corporate Social Responsibility Index
CSR has a major impact on business
performance
The question is:
How do you leverage
Corporate Social
Responsibility
this?
Index
45.4% of
reputation
Social Responsibility Index Questions
Q: Workplace: 'Company' is an appealing place to work -- it treats its employees well
Q: Citizenship: 'Company' is a good corporate citizen -- it supports good causes & does not harm the environment
Q: Governance: 'Company' is a responsibly-run company -- it behaves ethically and is open & transparent in its business dealings 16

17. How are Corporate Reputations Created?
Stakeholder
Experiences
Products Investments
Customer Employment
Service
Corporate Perceptions
Messaging Corporate
Corporate
Branding Marketing Trust Admiration Reputation
Reputation
Public Social Respect Good Feeling
Relations Responsibility
Media
Conversation
Print Broadcast Internet
17

18. Using CSR to Drive Improvements in Reputation
Analyze & Improve
Measure how your Identify your key stakeholders
7 1
activities are increasing
support
Engage stakeholders on
what’s relevant to them;
2 Understand what they
Communicate with want from you and the
stakeholders and the 6 industry
public
Identify how your
3 company vision and
values can play
Take strategic actions to 5 together with what
‘close the gap’ the stakeholders want
4
Identify gaps between what
you are doing, communicating
and what creates stakeholder
support
18