It's Not Easy Being Green and Other CSR Myths

It’s Not Easy Being Green – And Other CSR Myths

Jen
ManagInc, LLC www.ManagInc.com Info@ManagInc.com 866.858.1400
Jen Piccotti
Chief Operating Officer
ManagInc
@JenPiccotti
#CSRVoice

My company is committed to being socially responsible, caring for
employees, suppliers, residents and the communities we operate within
80.6% Agree
CSR does, or can, have an impact on employee retention, client retention,
company’s performance
90.3% Agree
CSR can positively impact our company’s reputation 95.1% Agree
CSR is important to employees, especially Millennials 88.7% Agree
Management Company Executives Suppliers Agree CSR Is
Important, Impacts Reputation and Performance

33%
Boycott or support businesses
based on causes they care about
2016 Cone Communication CSR Study

42%
Company perceptions
based on CSR
Forbes

70%
Young Adults who consider
themselves activists
TBWA/Worldwide and TakePart/Participant Media

79%
Expect businesses to
continue improving
CSR efforts

Adobe; Apple; Blue Cross Blue
Shield of Massachusetts; Danfoss;
Dignity Health, Facebook; Gap,
Inc.; Google; The Hartford;
Hewlett Packard Enterprise;
Ingersoll Rand; Intel Corporation;
Johnson Controls; Levi Strauss &
Co.; Mars Incorporated;
Microsoft; Morgan Stanley;
National Grid; PG&E Corporation;
Royal DSM; Salesforce; Schneider
Electric; Tiffany & Co.; Unilever;
and VF Corporation.
Letter to President - Paris Accord

What is CSR?
Corporate Social Responsibility [CSR; kôrp(ə)rət | sōSHəl | ri-spon-suh-bil-i-tee]
 Initiatives to assess, take responsibility for effects on environmental, social wellbeing
 Balancing profit pursuits and ethical conduct passed the tipping point due to negative impact activities
can have on Millennial employment and purchasing decisions
 Google's slogan says it best: "Don't be evil. If you are, the world will find out and you will pay dearly.”

Turnover
costs
minimally
1.5x salary
(CFO.com)

ManagInc 2017 Multifamily CSR Benchmark Study
12
Green Initiatives – Where We’re Succeeding
Low impact LED and CFL lighting used at properties 85.2%
High efficiency Energy Star appliances used for in-unit appliance
replacements and turnover units
83.1%
Water conservation systems/programs implemented 68.9%
Source: ManagInc, 2017 Multifamily CSR Benchmark Study (www.ManagInc.com)

13
Green Initiatives – Where We’re Falling Short
Recycling available at all properties 60.0%
Sustainability training and certifications for maintenance teams 40.7%
Promote local utility company renewable energy options to residents 30.5%
Renewable energy utilized at any properties (solar, wind, geo-thermal) 24.6%
Subsidize / encourage car-pooling, car sharing, mass transit, or bicycling 22.0%

LED lighting
Request energy audits
Policy on energy usage
Energy Star appliances
Promote renewable energy options

Recycling programs
Composting options
Free-cycle board on portal
Waste, water and energy tracking
Community garden

Residents:
The Living Experience

19
67%
Buy from companies
supporting good causes.
Edelman Goodpurpose Study

20
87%
Purchase because company advocated
for issue they care about

75%
Refuse to purchase if company
supported issue contrary to their beliefs

346,000
New rental apartments to hit the
market in 2017.
Wolf Street

Source: 2017 Multifamily CSR Study, ManagInc

43-63%
Job decisions based on company’s
cause work
Forbes

Choose Purpose Over Pay or Titles
48% - Baby Boomers
38% - Generation X
30% - Millennials
2016 Global Report on Purpose At Work

27
The Greater Good – Where We’re Succeeding
Company-organized community service events 70.3%
Company permits personal time off to volunteer and perform
community service **
64.1%

28
The Greater Good – Where We’re Falling Short
Company donations made for employees who volunteer
individually or as a group
28.6%
Automatic payroll deductions for charitable donations 25.4%
Charitable donation matching 22.6%

Financial Impact of Resident Turnover
*National turnover: 52% residents, 32% employee
ManagInc Client turnover: 28% residents, 15% employee
Calculations based on 3,000-unit portfolio
NOI Impact - Resident and Employee Turnover From To
Industry - Resident 2,340,000$ 7,800,000$
Industry - Employee 379,512$ 1,066,248$
Industry - Total Cost of Turnover 2,719,512$ 8,866,248$
ManagInc Clients - Resident 1,251,000$ 4,170,000$
ManagInc Clients - Employee 180,624$ 507,467$
ManagInc Clients - Total Cost of Turnover 1,431,624$ 4,677,467$
ManagInc Client Variance with Industry (1,287,888)$ (4,188,781)$
Asset Value Impact - Resident and Employee Turnover From To
Industry - Resident 39,000,000$ 130,000,000$
Industry - Employee 6,325,200$ 17,770,800$
ManagInc Clients - Resident 20,850,000$ 69,500,000$
ManagInc Clients - Employee 3,010,400$ 8,457,790$
ManagInc Clients - Total Cost of Turnover 23,860,400$ 77,957,790$
ManagInc Client Variance with Industry (21,464,800)$ (69,813,010)$
Source: ManagInc (www.ManagInc.com)

Financial Impact of Resident Turnover
*National turnover: 52% residents, 32% employee
ManagInc Client turnover: 28% residents, 15% employee
Calculations based on 3,000-unit portfolio
NOI Impact - Resident and Employee Turnover From To
Asset Value Impact - Resident and Employee Turnover From To

31
Education and Career Development – Where We’re Succeeding
In-house education staff and/or outsourced education program 92.4%
Company pays for employee certification education and
licensing program (i.e. NAA CAM designation)
90.6%
All position openings promoted to all existing staff 87.7%

Education and Career Development – Where We’re Falling Short
Mandatory new employee orientation program 83.1%
Formal mentoring program 50.0%
Formal career development program 45.2%

Annual employee feedback program
Defined, consistent onboarding
Mentoring program
Career development plan
Volunteerism supported

34ManagInc, LLC www.ManagInc.com Info@ManagInc.com 866.858.1400
Key First Steps to CSR Reputation

Define and share what
you are already doing

ManagInc
• ManagInc’s Everyone Can Win® Services: Multifamily’s first-ever Corporate Social Responsibility (CSR)
services that help property management companies focus on their commitment to their most important
stakeholders: employees, suppliers, residents, and the communities they conduct business in
• Focus: Focusing on employee engagement and retention, supplier loyalty, resident satisfaction and retention, and
giving back to society in a meaningful way creates a win-win for all involved, including a significant bottom line
impact due to the cost related to reduced employee and resident turnover, and an improved reputation
• Everyone Can Win® Platform: A comprehensive platform that helps clients evaluate, measure, manage and
enhance its three-pillared CSR program
• CSR Score: An option to the Platform service for companies more comfortable beginning by “dipping their toe in
the CSR waters”; CSR Score is a rating and ranking program based on perception studies with all stakeholders and
an overall evaluation of company programs targeted to each
• Awards and CSR Score: The ability to leverage a Socially Responsible Management Company Award or the
company’s CSR Score positively impacts both employee and resident recruitment due to the importance of CSR to
Millennials and others

Next Month…
November 15 -
Thanks for Giving -
Multifamily's Guide
to Philanthropy

40ManagInc, LLC www.ManagInc.com Info@ManagInc.com 866.858.1400
Contact Info
Questions?

Jen Piccotti
Chief Operating Officer
ManagInc, LLC
www.ManagInc.com
JPiccotti@ManagInc.com
866.858.1400 x104
facebook.com/ManagInc
@ManagInc
Contact Info

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